Revolutionising SaaS Management: Startup Thinking and FinOps Practices for Financial Efficiency

In the dynamic landscape of cloud technology, traditional control procedures fall short in managing the rapid evolution. The advent of infrastructure as code introduces a paradigm shift in spending patterns, necessitating a software engineering approach to oversight.

Efficiency is paramount in cost management. Before to any action, meticulous attention to cost control is imperative. During application design, engineers and architects must meticulously evaluate options and evaluate opportunities. This approach mirrors the resourcefulness inherent in startup culture, emphasising maximal output with minimal resources.

In corporate environments where major providers offer extensive support packaged with hefty contracts, implementing such strategies can be challenging. However, Organisations should actively explore alternatives and conduct thorough analyses to optimise spending.

Building Vs Buying: Navigating the Development of Cloud Applications

With the development of cloud technology, APIs, and accelerated and simplified solutions, the decision to build or buy has become more complex but also more essential. Developing an application carries costs associated with people, engineering, materials, testing, and often, upon reaching the objective and completing the product, the original team may be dismantled, leaving us with a legacy solution that has not evolved and requires costly maintenance.

However, it is also true that market solutions often come with high licensing fees or usage commitments in exchange for discounts. The perfect mix should involve combining the two options with a "doing more with less" ; adopting SaaS applications with a focus on controlling risks and maintaining household economy.

During my first startup experience, the technology team embraced a "do more with less" ethos, leveraging cloud infrastructure, continuous integration and continuous delivery, and full platform automation using Terraform. With a discerning eye, we assessed over 2000 product solutions, emphasising seamless API integration in our final selection.

The contracts I signed did not aim for long-term service agreements, rather they sought fast integration speed and business results. There was also a strong focus and close monitoring on cost, including call volumes, licensed usage, and overall usage. With a complete cloud platform and full functionalities such as CRM incident services, technology services, and security solutions, the startup's operational costs remained manageable.

The Value of a Shadow Platform: Exploring the Benefits of SaaS Applications

During that time, working intensively with SaaS solutions enabled me to learn the importance of Exit Strategies, and understanding Exit Timelines and Cost. It was crucial for us to gauge the transition duration between providers without compromising service continuity. ?I meticulously maintained a matrix detailing each provider's exit timeline, alongside their respective pricing, alternative providers with their updated pricing, and integration requirements. While demanding, this exercise was indispensable from a risk management standpoint.

Outsourcing non-core functions to third parties is no longer just an option; it's a necessity in an increasingly streamlined environment with more competitive costs.

The current market of applications is massive, and the competition in quality and service favours customers. However, we must be smart enough to avoid getting tied down in contracts that jeopardise product evolution and quality for the sake of price.?

Since that time, I have accompanied every design, application, or integration decision with the consideration of the period of exit and the available alternatives. In fact, designs should included the integration of various providers of similar solutions with different balancing models - seeking better prices through percentages, scaling in case of processing peaks, or support for more complex cases- always prioritising automation and simplicity.?

Cloud FinOps: Applying the Scientific Method for Visibility, Measurement and Strategic Thinking

Implementing FinOps principles across the SaaS market and infrastructure investments is imperative. Interestingly, my journey with Engineering Optimisation commenced with a Startup Mindset focused on maximising output with minimal resources, leveraging the SaaS market, and eventually transitioning to leading the FinOps functions

The "See, Measure, Think" principle emphasises a scientific approach to problem-solving, which involves observing the situation, measuring the relevant metrics, and data-driven decision-making

This principle of observation, measurement, and analysis is critical in making informed financial decisions and cutting down on costs while ensuring that quality services are delivered. As simple (and complex) as a data recycling process.

Data Recycling Process: raw data lacks value without insights, and insights are meaningless without decision-making. And decisions must be evaluated by new data, completing the cycle for continuous refinement.

As a concluding reflection, it's crucial to acknowledge the divergent perspectives on ownership between corporate and household economics. Balancing a sense of ownership with engineering discipline is essential, and the change into Corporate Organisation demands a fresh perspective on responsibility.