Primary Goal: Cloud platform relationship management.
Procurement Analysts, Sourcing analysts, Vendor Management or Directors within Procurement teams use insights provided by the FinOps team for identifying sourcing and purchasing of product and services within a Cloud Platform Vendor. Procurement should work closely with FinOps to ensure that prices and terms negotiated in the contract are fulfilled and streamline the procurement process. Procurement may have a legal component to review contract language. Procurement roles include sourcing and vendor management.
Objectives
- Negotiate the best win-win cloud contract
- Exercise enterprise discount / volume commitment programs
- Manage relationship with Cloud platform provider
Challenges
- Lack of visibility to cloud cost data
- Lack of centralized process for cloud commitments
Key Metrics
- Software license optimization
- Cost per license
- Utilization of licenses per team
- Cost or IT Spend per Vendor to provide possible consolidation opportunities
FinOps Benefits
- Obtain the best cloud cost rates available
- Translate billing data to activity based costing
- Provide visibility and enable understanding of cost per technology license and contracts
FinOps Procurement Persona includes:
- Procurement/Sourcing Specialist
These roles are experienced in negotiating contracts and managing vendor relationships, skills that can be applied to cloud cost optimization.
- Procurement Specialist/Buyer
This is often an entry-level or mid-level role focused on sourcing, purchasing, and managing specific categories of goods or services.
- Sourcing Specialist/Analyst
Focuses on identifying and evaluating potential suppliers, negotiating contracts, and managing supplier relationships. May specialize in particular areas like global sourcing.
- Contract Administrator/Manager
Manages the lifecycle of contracts, ensuring compliance, tracking obligations, and handling renewals.
- Procurement Analyst
Supports the procurement team by analyzing spend data, market trends, and supplier performance. They often provide insights for strategic decision-making.
- Vendor Manager
Responsible for overseeing and managing a company’s relationships with its vendors (suppliers). This includes selecting vendors, negotiating contracts, monitoring performance, ensuring compliance, and optimizing vendor costs and service levels.
