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FinOps Teams Are Making This One Critical Mistake

FinOps Teams Are Making This One Critical Mistake

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In this episode of the FinOps Weekly podcast, Victor is joined by Frank from Coblan to discuss a major shift in how companies manage cloud costs. They dive into why traditional "bottom-up" FinOps often fails and how a "top-down" strategy can lead to better results.

Frank explains that asking engineers to fix things without a clear strategy is a common mistake. Instead, leadership should set the vision and constraints, allowing technical teams to work effectively within a defined "sandbox."

Key topics covered in this episode:

  • Top-Down vs. Bottom-Up: Why FinOps teams should look to leadership for priorities rather than relying solely on automated tool recommendations [03:55].

  • Context is Everything: Why raw numbers like "46%" or "$300,000" are useless without understanding the business goals and profit margins behind them [19:54].

  • The Power of Constraints: How setting clear technical limits can actually free developers to be more creative and productive [15:59].

  • Speaking the Language of Finance: A real-world example of how translating cloud terms (like Reserved Instances) into financial concepts can win over a CFO [11:12].

  • Actionable Advice: The importance of reading your company's strategy reports and working with Product Owners to get FinOps tasks into the official backlog [50:01].

If you want to move beyond just "chasing savings" and start driving real business value through your cloud strategy, this conversation provides the roadmap.

Watch the full video here: https://www.youtube.com/watch?v=tNsEYhUvsB0

Chapters
  • (00:00:00) - Top Down Finops
  • (00:00:43) - Franc Contrepoix
  • (00:02:35) - Top-Down Finops vs Bottom Down Finops
  • (00:08:01) - CFO: We're in a Cloud Bubble
  • (00:10:31) - Questions about Reserved Installs
  • (00:13:15) - WSJDLive: The Process of Cascading Rules
  • (00:13:49) - Constraints in the Software Development Process
  • (00:18:15) - Context is everything in data visualization
  • (00:25:12) - The Context of Decision Making
  • (00:29:31) - The cloud and its risks
  • (00:32:41) - One of the good things of cloud
  • (00:36:18) - Common Mistakes in the Cloud Financial Data
  • (00:41:20) - Finance & IT: The Need for Collaboration Tools
  • (00:47:58) - Top-down vs bottom-up
  • (00:51:30) - Promotion for Managers
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