Stages of Adopting FinOps FOCUS™

The concept of FinOps, a discipline designed to bring financial accountability to cloud computing, began taking shape in the early 2010s, driven by trailblazers like Adobe and Intuit, who were among the first to adopt the public cloud at scale. 

Over time, other industry giants such as GE and Nike began navigating their own FinOps journeys, especially as cloud adoption surged. By the mid-2010s, organizations across the globe, from Australia’s Atlassian to UK-based enterprises like BP and HSBC were encountering the same challenge: managing cloud costs at scale.

As the need for standardized, transparent cloud billing data grew, the FinOps Foundation developed the FinOps Open Cost and Usage Specification (FOCUS™). This open-source standard was created to simplify the often complex task of normalizing cloud billing data from multiple vendors. It also enabled FinOps practitioners to move beyond manual data wrangling and make more strategic decisions. FOCUS™ has since become a critical tool for organizations looking to streamline their cloud financial processes, allowing them to better align costs with business goals.

Today, we’ll explore the key stages of adopting FinOps FOCUS™. Let’s look at each stage from deciding to launch to building and refining your solution so we can understand how these stages can revolutionize your approach to cloud cost management.

What is FinOps FOCUS™?

The FinOps Open Cost and Usage Specification (FOCUS™) is an open-source standard created by the FinOps Foundation. It sets clear guidelines for cloud vendors to produce consistent cost and usage data. The goal of this standard is to simplify the process of understanding cloud bills and make it easier for FinOps Practitioners to analyze costs and maximize the value of all cloud investments.

Why is FinOps FOCUS™ important? 

Cloud billing data from providers like IaaS, SaaS, and ISVs often comes in different formats, with varying terminology and metrics. For instance, storage usage might be labeled as "S3 Standard Storage" in AWS, while Azure refers to it as "Blob Storage." Meanwhile, a SaaS provider like Snowflake might report storage costs based on the amount of data processed rather than the raw storage consumed. 

These differences in naming conventions and metrics make it challenging to compare, consolidate, and measure costs across multiple providers. They spend significant time normalizing and organizing this data before starting any real analysis. It’s even more challenging when a new vendor enters the mix, requiring custom solutions to adapt their data to the organization’s format.

FinOps FOCUS™ solves this by creating a universal way to standardize cloud billing data. It reduces the manual effort involved in turning scattered data streams into actionable insights. With FOCUS™, businesses can focus less on cleaning up data and more on using it to make smarter, strategic decisions.

What are the stages of adopting FinOps FOCUS™?

Adopting FinOps FOCUS™ is a journey that varies for every organization but generally follows five key stages: 

1. Decide

2. Design

3. Build

4. Test

5. Launch

Each stage helps organizations move closer to streamlining their cloud cost and usage data for better FinOps practices.

The process often starts with deciding how FinOps FOCUS™ fits your organization’s needs, defining the scope, and securing the necessary approvals. Then, it’s about assembling the right team, planning the technical solution, and designing the adoption approach. Once the foundation is laid, the focus shifts to building the solution and rigorously testing it for accuracy through pilots and feedback. Finally, the solution is launched with room for ongoing improvement and measurement of its impact.

These stages aren’t always linear, they can overlap or repeat as needed. For instance, organizations might go back to rebuild and test multiple times before a final launch. Each step includes milestones so you can adapt to your organization’s unique requirements. Now, let’s explore each stage in detail and see how they come together in the FOCUS™ adoption journey.

Stage 1: Decide

The Decide stage is all about determining if and when FOCUS™ adoption makes sense for your organization. 

This is the time to understand FOCUS™ deeply and dive deep into its benefits, your organization’s current challenges, and future goals. It’s essential to assess whether adopting FinOps FOCUS™ aligns with your needs and if your resources and timing are right to support the effort. Here’s everything this stage entails:

1. Assess organizational needs

   Most organizations decide to adopt FOCUS™ to tackle existing issues with normalizing data from multiple cloud providers. 

   FOCUS™ simplifies this process, saving time and allowing teams to focus on more strategic work. But your reasons may differ – perhaps it’s future-proofing your operations or addressing a specific reporting challenge. The key is to assess your needs thoroughly, both now and in the future.

   
   

2. Determine scope and approach

   You’ll also need to decide how wide your adoption should be. Organizations usually pick one of three approaches:

   • Small-scale adoption: Start with one or a select few business units or reporting initiatives. This is a low-risk way to ease into FOCUS™.

   • Large-scale adoption: Roll it out across the entire organization or for most reporting initiatives. This provides swift benefits but requires smooth execution due to more risk.

   • Blended-scale adoption: A mix of small and large-scale approaches. This offers flexibility but may lead to scope creep if not managed well.

   
   

3. Get approval

   Larger organizations often need formal approval for FinOps FOCUS™ adoption, requiring business cases, executive sign-offs, or ticket submissions. When seeking approval, focus on these key points:

   • Clearly explain what FOCUS™ is and how it benefits the organization.

   • Highlight a measurable outcome like improving direct cost allocation from 25% to 100% within a given period of time.

   • Define the scope, approach, and resources needed for adoption.

   • Discuss timing and how it aligns with other priorities.

   
   

What if the approval isn’t granted? 

The journey doesn’t have to end if this happens. Just keep in mind that some organizations start with a grassroots effort or revisit the decision later when conditions are more favorable.

Stage 2: Design

The design stage is where the real groundwork begins for FOCUS™ adoption.

It’s about assembling the right team, mapping out a solid technical solution, and planning the adoption process for a seamless rollout. 

Here’s a closer look at the three critical steps:

1. Assemble a team

   Adopting FinOps FOCUS™ isn’t a one-person job; it requires collaboration from key stakeholders across the organization. 

   The goal here is to form a well-rounded cross-functional team with diverse expertise to drive the implementation, ensuring every business need is accounted for. This team may consist of:

   • FinOps practitioners with expertise in cost and usage data, focusing on optimization, forecasting, and reporting.

   • Data and information architects who are responsible for designing how FOCUS™ integrates with existing systems and maintaining data consistency.

   • Cloud engineers for generating cloud consumption data and using it to guide decision-making.

   • Procurement and finance teams utilize billing data for forecasting, budgeting, and managing vendor relationships.

   • Product/project managers, who leverage cost data to align project timelines and goals and drive positive customer experiences.

   • Security experts for data compliance and the protection of sensitive financial information.

     
     

2. Design the technical solution

   This step involves creating the roadmap for how FOCUS™ will be technically implemented and integrated into your organization. It’s critical to answer the following questions:

   • Data sourcing: Decide where FOCUS™ data will come from. Options include direct CSP data, third-party tools, or custom-built solutions.

   • Historical data: Determine how much historical data needs to be converted into FOCUS™ format for a complete picture.

   • Custom data enrichment: Plan for any additional tagging or data modifications needed to meet organizational requirements.

   • Storage: Identify where the data will be stored – cloud storage, data lakes, or other repositories.

   • Accessibility: Define how different teams will access and use the data for reporting, invoicing, and analytics.

     
     

3. Design the adoption process

   With the technical plan in place, the focus (pun intended) shifts to preparing the organization to adopt FOCUS™ effectively. This ideally involves both logistical planning and communication strategies to ensure teams understand and embrace the changes. Below are some of the steps you may need to follow for the adoption process:

   • Train and educate

     • Identify the training needs for different teams (e.g., engineers, finance, product managers).

     • Create or source materials that explain how to access and interpret FOCUS™ data.

   • Communicate clearly

     • Notify teams about what’s changing and how it impacts their workflows.

     • Use clear communication channels such as emails, webinars, or team meetings to provide updates.

   • Have a rollout plan ready

     • Decide which geographies, departments, or business units will adopt FOCUS™ first.

     • Plan a phased rollout to manage the transition effectively and troubleshoot early challenges.

Stage 3: Build

The Build stage is all about turning the plans from the previous stage into reality. This is where the technical groundwork for FinOps FOCUS™ adoption happens, transforming your strategy into action. The goal is to create the infrastructure needed to support seamless data flow, integration, and ultimately, effective reporting.

During this stage, your priorities will be:

• Setting up connections: Work closely with cloud service providers (CSPs) or third-party vendors to establish the required data connections. This includes platforms like AWS, Azure, GCP, and OCI.

• Integrating custom data: Collaborate with internal teams to link systems that house any custom data enrichments (e.g., tagging information or additional labels).

• Data storage: Create a space to store all the complete, transformed data that will serve as the foundation for analysis.

• Connecting to reporting systems: Integrate the new data source with your organization's reporting and visualization tools, ensuring easy access and real-time updates.

• Building reports & dashboards: Use the transformed data to build actionable reports and dashboards, enabling teams to make informed, data-driven decisions.

By breaking down these tasks into smaller steps, you’ll gradually build a solid foundation for FOCUS™ adoption that supports the ongoing needs of your business.

Stage 4: Test

The Test stage is all about ensuring your FOCUS™ solution is working as expected, with reliable data that teams can trust. 

It's a critical step before launching the solution across the organization. One where you’ll validate accuracy, gather feedback, and make improvements to refine the system. 

The entire point of this stage is to ensure the solution delivers real value and is ready for wider adoption. Here’s what this stage primarily involves:

Check the solution for accuracy & consistency

Before launching, you have to verify that everything is functioning correctly. This means double-checking all data points, metrics, and reports to make sure they’re accurate and consistent. 

You can use manual checks, tools, or a combination of both, like the FOCUS™ Converter’s validation component, to ensure your data is reliable.

Conduct a pilot

Identify a small group of trusted individuals to use the solution before the full rollout. This pilot team can help spot issues and provide valuable insights on how the solution performs in real-world use. 

Early feedback from this group can help you build strong communication channels and prepare the team for the launch phase.

Improve from feedback

Take the feedback from your pilot team and refine the solution accordingly. Fix any bugs, address issues, and tweak features to improve usability. 

Making these adjustments early on reduces the risk of major changes post-launch and ensures smoother adoption by a larger group of users.

Stage 5: Launch

The Launch stage is when your organization officially introduces FOCUS™ to a broader audience. 

It’s a pivotal moment when teams beyond the project and pilot group begin using FOCUS™ data and tools. 

The goal is to ensure everyone who needs access to this new data can engage with it effectively and begin integrating it into their workflows. During the Launch stage, several key activities take place:

Announcing FOCUS™ adoption

It’s important to communicate the official rollout of FOCUS™ across the organization for everyone to be aware of the new tools and datasets and how they will impact their work.

Education & training

A significant part of the launch is providing training to teams on how to use FOCUS™ and access the data relevant to their roles. This can include hands-on sessions or creating user guides and documentation to make the adoption process smoother.

Collecting feedback

Gathering feedback from users is essential for continuous improvement. It helps you identify any issues or gaps in functionality that need to be addressed so the system evolves with the needs of the organization.

Measuring benefits

It’s important to track the benefits of FOCUS™ adoption such as improved efficiency or cost savings. Measuring these outcomes helps justify the investment and guides future iterations.

Once the solution is live, product management plays a crucial role for the long-term success of FOCUS™. This means keeping track of fixes, updates, and new feature requests to continuously enhance the system based on user needs.

In short, the Launch stage sets the foundation for long-term adoption and ensures the organization can start seeing the value of FOCUS™ while maintaining flexibility for future improvements.

Wrapping Up FinOps FOCUS™Adoption

As cloud environments become more intricate, the need for clear, standardized cost and usage data is critical. FOCUS™ serves as the foundation for efficient FinOps practices that allow businesses to align cloud investments with organizational goals. Whether you’re in the early stages of exploring cloud cost management or refining a mature FinOps strategy, adopting FinOps FOCUS™ ensures you stay ahead in an increasingly cloud-centric world.

At Amnic, we make this journey even simpler. As a FinOps acceleration, cloud cost allocation, and cost management platform, we empower businesses to take full control of their cloud costs. From granular cost allocation to actionable recommendations, our solutions are designed to unlock the maximum potential of your cloud infrastructure.

Take the next step with confidence: Experience the Amnic difference for yourself. Contact us for a personalized demo or start your 30-day free trial to see how Amnic can transform your approach to cloud cost management.