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Forecasting is the practice of predicting future spending, usually based on a combination of historical spending and an evaluation of future plans, understanding how future cloud infrastructure and application lifecycle changes may impact current budgets and influence budget planning and future cloud investment decisions.

This capability also involves collaboration between stakeholder teams like Finance, Engineering, and Executives to build agreed upon forecast models and KPIs from which to establish budgets that align with business goals.

Unfortunately, there is no one forecasting method that fits all situations.

Cloud spend is variable which is inherently difficult to predict. Specifically engineers can start workloads at any time typically without having to go through a procurement process.

Maturity Assessment




Functional Activity

As someone in a Business/Product role, I will…

As someone in a Finance/FinOps role, I will…

As someone in an Engineering/Operations role, I will…

As someone in an Executive role, I will…

Measure(s) of Success & KPI

Measures of success are represented in the context of cloud costs and may include one or more key performance indicators ( KPI ), describe objectives with key results ( OKR ), and declare thresholds defining outliers or acceptable variance from forecasted trends.