TechSparks 2024 in Bengaluru provided a valuable wake-up call for startups with its masterclass on ‘Leveraging FinOps for Success.’ Cloud infrastructure is gradually becoming the backbone of most tech-driven businesses. Managing cloud costs is not just a technical detail now but it is a critical financial strategy. The insights shared by Satyam Santosh and DVS Shiv Kumar from OVHcloud laid bare the challenges and opportunities that come with cloud management. They also shared that why FinOps should be at the forefront of every startup’s operations.
Startups for long have viewed cloud services as a pay-as-you-go convenience. Santosh aptly pointed out that early-stage startups need to be far more deliberate in managing cloud expenses. It is revealed that companies overspend by 26% on their cloud budgets. This is an era where every penny counts and such inefficiencies can be the difference between scaling up or sinking. FinOps offers a much-needed remedy.
FinOps is about understanding and optimizing cloud costs at its core. Kumar explained that the first step is identifying exactly what services are being consumed. The discipline is where many startups falter. Hidden costs such as bandwidth and data transfer can quietly drain budgets and leave startups with unexpected financial strain. The costs can spiral out of control and especially for data-heavy businesses.
Another underappreciated risk is vendor lock-in and this can handcuff startups to a single cloud provider. The example of a French edtech company losing a deal due to its deep reliance on one provider’s architecture by Santosh is a cautionary tale. Startups must prioritize flexibility by avoiding over-reliance on managed services and adopting open standards.
The key takeaway from the session is that FinOps is not a separate function but it should be integrated into the DNA of the startup. Strengthening a culture of cost awareness is critical. Startups can make informed decisions that will prevent unexpected cloud expenses from derailing growth.
The importance of leveraging cloud provider benefits was another crucial point. Free bandwidth offerings can reduce costs significantly. Startups should also tap into the credits and support provided through cloud provider startup programs. It gives them a financial cushion during the crucial early stages.
The message from TechSparks 2024 is clear and it is that FinOps is no longer an optional strategy but a necessity for any startup looking to survive and thrive in a cloud-first world. Those who master FinOps will not only manage costs effectively but also gain a competitive edge, positioning themselves for growth and long-term success.
