FinOps roles, responsibilities, and team structure

Managing cloud expenses can be extra challenging without a solid team. That’s when having a good FinOps team becomes so important. But what makes up a good FinOps team?

The goal of this blog post is to explain FinOps roles and responsibilities within your overall cloud strategy. Here’s a more in-depth look at what we’ll cover:

• A definition of FinOps and its importance in SaaS
• The advantages of having a FinOps team
• A breakdown of the key roles in a FinOps team
• How FinOps teams are structured
• Tips on how to build your own FinOps team

Let’s start with the first point.

What is FinOps?

FinOps is the practice of managing and optimizing cloud costs through a collaborative effort. It helps you understand where your money is going and how to get the most out of it.

In essence, FinOps bridges the gap between technology, finance, and business. It helps ensure you get maximum value from your cloud investments.

Why FinOps matters, especially for SaaS companies

For SaaS companies, FinOps is crucial. SaaS companies rely on cloud infrastructure, and costs can spiral out of control without careful management. FinOps allows them to rein in spending, make better decisions about resource allocation, and boost their bottom line.

The FinOps advantage

What's in it for you? Let's break down the key benefits:

• Cost savings: FinOps helps identify areas of waste. It also helps with negotiating better deals with cloud providers and right-sizing resources. The goal is to reduce costs without compromising service quality.
• Financial accountability: With FinOps, you track cloud spending and usage in real time. This gives you clear visibility into your financial landscape, making it easier to budget, forecast, and make data-driven decisions.
• Resource optimization: FinOps ensures that you're using the right resources at the right time, avoiding overprovisioning and underprovisioning.
• Improved collaboration: FinOps brings together teams that traditionally work in silos. Think finance, engineering, and operations. This fosters a culture of shared responsibility for cloud costs and drives better communication.
• Faster time to market: FinOps enables you to deploy new features and updates faster. How? Through streamlined processes and automated workflows. The best part is this gives you a competitive edge over other SaaS providers.

Key FinOps roles and responsibilities 

Every successful FinOps team has a cast of collaborators, each with unique skills and duties. Let's meet the FinOps personas:

FinOps manager

The FinOps manager is the captain of the ship. They steer the entire FinOps function, setting the course by establishing policies, procedures, and goals. If we had to rank FinOps roles and responsibilities in order of importance, they’d be in first place. 

They ensure that the team's efforts align with the company's broader financial objectives. Think of them as the conductor of an orchestra, making sure everyone is in sync.

Skills required

• A successful FinOps manager requires a firm grasp of financial principles and practices, demonstrating financial acumen.
• They must possess leadership skills, including motivating and guiding the team while fostering a collaborative environment.
• Cloud computing knowledge is essential, showcasing a basic understanding of cloud technologies and their financial implications.
• The FinOps manager should be adept at interpreting data, identifying trends, making informed decisions, and highlighting their analytical skills.

Cloud financial analyst

The cloud financial analyst can be thought of as a data detective of sorts. They examine cloud spending patterns, uncover hidden costs, and pinpoint areas for savings. They translate raw data into reports that drive decision-making.

Skills required

• A proficient cloud financial analyst demonstrates mastery of tools and techniques for analyzing large datasets.
• They must be able to create financial models that accurately forecast cloud costs and assess the impact of various scenarios.
• Familiarity with major cloud providers and their billing models is crucial for this role.
• An eagle eye for detail is necessary to spot discrepancies and anomalies in data.

Cost optimization specialist

The cost optimization specialist is the action-taker. They translate the analyst's findings into actionable strategies to reduce costs. 

This involves implementing cost-saving measures, monitoring cloud usage, and optimizing resource allocation. They're always looking for ways to get more bang for your cloud buck.

Skills required

• A successful cost optimization specialist with deep expertise in cloud architecture, showcasing a thorough understanding of cloud infrastructure and services.
• They excel at problem-solving, employing creative thinking to find innovative solutions to cost challenges.
• A proactive approach is vital for this role, as it involves anticipating potential issues before they escalate.

Cloud engineer

The cloud engineer is the tech expert. They work hand-in-hand with the FinOps team. They aim to guarantee that cloud resources are used efficiently and cost-effectively. This might involve implementing cost controls, automating processes, or right-sizing infrastructure.

Skills required

• A skilled cloud engineer has expertise in managing cloud resources, including provisioning, configuration, and monitoring.
• Proficiency in scripting languages like Python or PowerShell is essential for automating tasks.
• The ability to diagnose and resolve technical issues that impact cloud costs is a key requirement for this role.

Procurement specialist

The procurement specialist is the negotiator. They're responsible for managing relationships with cloud vendors, negotiating contracts, and ensuring the organization gets the best possible deal on cloud services.

Skills required

• A procurement specialist must have strong negotiation skills to secure favorable terms and discounts with cloud vendors.
• Expertise in drafting, reviewing, and managing contracts is a fundamental aspect of this role.
• Building and maintaining strong relationships with vendors is essential for successful vendor management.

Executive sponsor

The executive sponsor is the visionary. They provide high-level strategic direction for the FinOps initiative, secure buy-in from other executives, and confirm alignment with the company's overall strategy.

Skills required

• An effective executive sponsor demonstrates leadership skills, inspiring and influencing others at the executive level.
• Strategic thinking is vital for this role, as it involves formulating a long-term vision for the organization and its use of cloud technology.
• An understanding of financial metrics and their impact on the business is key for providing financial oversight.

How are FinOps teams structured? 

Now that we’ve discussed FinOps roles and responsibilities, let’s get into FinOps team structures. 

The short answer to the title question is “It depends.” The ideal FinOps team structure depends on factors such as company size, industry, and cloud maturity. However, let's explore three common approaches:

Centralized FinOps team

In this model, all FinOps personas are gathered under one roof, forming a dedicated FinOps team. This creates a hub of specialized knowledge and fosters a strong sense of shared purpose.

• Pros: Centralized teams often have clearer accountability. Therefore, they can drive FinOps initiatives more efficiently.
• Cons: This approach might lead to some isolation from other teams. This could potentially hinder collaboration.

Decentralized FinOps team

Here, FinOps responsibilities are distributed across existing teams. For instance, your finance team might handle budgeting and forecasting, while your engineering team would tackle cost optimization.

• Pros: This can foster closer collaboration between FinOps and the teams responsible for cloud usage.
• Cons: Without a dedicated team, FinOps might not get the focused attention it needs, and responsibilities could become diluted.

Hybrid FinOps team

As the name suggests, this blends the two previous models. Some FinOps functions might be centralized, while others are decentralized.

• Pros: This offers the benefits of both approaches. It allows for both specialized expertise and close collaboration.
• Cons: It can be more complex to manage and might require clear communication channels to prevent confusion.

As stated before, the best structure for your FinOps team will depend on your unique needs and goals. Smaller companies might start with a decentralized approach, while larger enterprises might benefit from a centralized or hybrid model. 

The key is to choose a structure that supports your organization's overall cloud strategy. Most importantly, it fosters a culture of cost awareness and accountability.

How to build an effective FinOps team

Building a high-performing FinOps team isn't just about assembling a group of talented individuals. It's about fostering the right environment for them to thrive. Let's explore three key strategies to create a robust FinOps team:

Make sure you’re hiring the right talent 

You wouldn't build a house on a shaky foundation, and the same goes for your FinOps team. Recruiting individuals with the right skills and experience is paramount. That’s why building a solid FinOps team starts with attracting the right talent:

• Look beyond the finance department: Financial acumen is important. But FinOps requires a blend of financial and technical prowess. Seek out candidates with experience in cloud engineering, data analysis, or IT operations.
• Embrace a "T-shaped" skill set: Look for individuals with a breadth of knowledge across different FinOps areas. However, you should also look for depth in a particular specialty. 
  
  For example, a cloud engineer with a strong understanding of cost optimization principles would be a valuable asset.

• Cultural fit is key: FinOps is a collaborative endeavor. Look for individuals who are team players, communicators, and problem solvers.

Nurture your team’s growth through training and development

The cloud landscape is constantly evolving, and so should your FinOps team. Continuous learning and development are essential to stay ahead of the curve. Here’s what you can start doing now to make a difference:

• Invest in training: Provide your team with opportunities to expand their knowledge through training programs, workshops, and certifications.
• Encourage knowledge sharing: Create a culture where team members share their expertise with each other.
• Stay up to date: Subscribe to industry publications, attend conferences, and join FinOps communities. The goal is to stay abreast of the latest trends and best practices.

Foster constant collaboration and open communication

A FinOps team is only as strong as its ability to collaborate and communicate effectively. One thing you could do is break down silos between departments. Encourage open dialogue and foster a sense of shared responsibility for cloud costs. To do so, keep these three pillar concepts in mind:

• Regular meetings: Schedule recurring meetings to discuss progress, challenges, and opportunities.
• Transparency: Be transparent about cloud costs and usage data. Share this information with relevant stakeholders to create a culture of accountability.
• Communication channels: Use tools like Slack, Teams, or dedicated project management platforms. You want to facilitate communication and knowledge sharing.

Next steps

Assembling a high-performing FinOps team is crucial in optimizing your cloud costs. However, your team's effectiveness can be amplified when they have the right tools. This is especially true for the billing side of your SaaS operations. 

A frictionless, transparent billing system is the cornerstone of successful FinOps. It reduces financial strain and prevents unexpected costs or billing disputes.

That's where Orb steps in, serving as a strategic tool for all things billing. 

Orb is a billing platform that does the work for you. Our mission is to equip your team with the tools and insights they need to make the most of your cloud investments.

Here's how Orb supports your FinOps team:

• Seamless Integration: Orb integrates with your existing cloud infrastructure, CRM, and payment gateways. It provides a unified view of usage and billing data in real time, giving your FinOps team the accurate information they need to make better decisions.
• Flexible pricing models: Orb can handle a wide range of pricing models, from flat-rate subscriptions to usage-based pricing. This flexibility lets your FinOps team align your billing strategy with your customers' consumption patterns.
• Automated invoicing and payments: Orb automates the entire billing process, covering everything from invoice generation and delivery to payment collection and reconciliation. This automation frees your FinOps team from repetitive tasks, allowing them to focus on broader strategies. 
• Transparent usage tracking: Orb provides granular insights into customer usage patterns. This enables your FinOps team to identify trends, anticipate demand, and address issues. This clarity fosters a data-driven approach to cloud cost management.

Learn how Orb can be the foundation upon which your FinOps team builds success.