GreenOps is emerging as a more effective approach and better than FinOps in delivering lasting impact. Global IT spending is set to rise by 9% in 2025 and it is driven by rapid advancements in cloud computing as well as artificial intelligence. Businesses are increasingly relying on such technologies to drive digital transformation and operational efficiency. However, the rapid growth has simultaneously also exposed inefficiencies of cloud cost management. Many companies are facing cloud bills far exceeding their initial expectations.
One primary reason for the failure of FinOps is lack of cross-functional alignment. It primarily involves finance and IT teams, but often neglect input from operations and sustainability teams. The siloed approach results in suboptimal decision-making as different teams fail to collaborate effectively. Moreover, the FinOps mainly focuses on short-term cost-cutting measures and it can lead to compromises in performance, availability as well as scalability. Organizations that initially insist on high-availability architectures often scale back their plans when confronted with unexpected costs.
Failure of FinOps is not due to a lack of tools or processes, but the reason is rather a lack of motivation among engineers and architects. A stronger and more compelling driver is needed and this is where GreenOps comes into play.
GreenOps succeeds where FinOps struggles as it takes a holistic approach that combines financial, environmental and operational considerations. It encourages cross-functional collaboration by involving stakeholders from IT, finance, operations and sustainability teams. GreenOps provides clearer benchmarks and actionable insights for architects and engineers.
However, GreenOps alone is not enough to address the scale of inefficiency. Sustainability must be embedded at the earliest stages of system design.