Tangoe, the leading technology expense and asset management solution for over two decades, today announced the release of a 2023 Study: “Maximizing FinOps Programs,” a survey conducted by Foundry and commissioned by Tangoe. The research focuses on the critical aspects of managing cloud costs and best practices for maximizing resource utilization, achieving cost savings, and establishing more financial predictability. According to the survey, enterprises activating a FinOps model using AI-powered software are 53% more likely to report an overall cost savings of greater than 20%. In contrast, companies who do not use AI average less than 10% in cost savings.
Covering a wide range of FinOps issues, the study investigates the challenges that make FinOps a necessity, the top FinOps use cases, the benefits of these programs, the value of AI-enablement, and how to select a solution or service provider. A few highlights of the survey include:
- Companies using third-party software and services realized a 20% cost savings on average, while DIYers save less than 10%.
- The top areas benefiting from FinOps are productivity savings (46%), cost savings (43%) and reduced security risks (43%).
- Top three drivers for adopting FinOps/cloud cost management programs:
- Increasing cloud resource production and performance (70%)
- Reduced budgets (60%)
- Rising costs (58%)
- Companies using AI-enabled tools within FinOps cite benefits including ease of program management (50%). More than half (54%) cited challenges in building the right process and human support systems for FinOps.
- Service utilization and rightsizing services are among the highest priority use cases for FinOps in general with nearly two-thirds (65%) using it for this purpose.
“Reliance on cloud services is nearly universal, but for companies to achieve cloud ROI, they must quickly gain complete visibility into service utilization and be able to precisely match cloud resources with business needs in order to reduce unnecessary spending,” said James Parker, CEO, Tangoe. “Business leaders need real-time dashboards that connect IT operations, finance, and cloud financial management data in one platform, taking advantage of AI to deliver actionable insights. Our FinOps survey demonstrates the challenge businesses face in trying to develop these capabilities themselves, especially given the need for AI and expense management expertise.”