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Procurement

Framework / Personas / Procurement

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