FinOps Foundation and ITAM Forum Join Forces to Enhance Cloud Cost Management and Compliance
In a groundbreaking move that signals the evolution of financial management in technology, the FinOps Foundation and ITAM Forum have come together to form a strategic partnership aimed at unifying their approaches to cloud cost management and software compliance. This collaboration arises from an observed trend among enterprises over the past 18 months, where the integration of financial operations (FinOps) and IT asset management (ITAM) practices has become increasingly essential.
The FinOps Foundation, a prominent non-profit organization under The Linux Foundation, focuses on maximizing the value businesses derive from cloud technologies. FinOps blends financial accountability with technical operations, ensuring that organizations can make informed, data-driven decisions by aligning finance, engineering, and business units. This operational framework, which was established primarily for public cloud cost management, has evolved to include Cloud+, a term that encompasses a diverse range of technology expenditures, including software as a service (SaaS), licensing, and traditional data center costs.
In contrast, the ITAM Forum is a global membership association dedicated to enhancing the IT Asset Management sector, focusing on software inventory, compliance with licensing regulations, and effective management of IT assets. Historically, FinOps and ITAM/SAM (Software Asset Management) have functioned in parallel, with distinct methodologies and outcomes. However, their convergence is increasingly evident as organizations seek greater efficiency and synergy in managing both cost and compliance in technology.
Key intersections between the two domains include:
1. SaaS Inventory Optimization - By integrating FinOps' analytics on usage and costs with ITAM's capabilities for software discovery, companies can more finely tune their SaaS portfolios, eliminating unnecessary expenses and maximizing value.
2. License Compliance in the Cloud - SAM techniques will now be applied to help manage Bring Your Own License (BYOL) models and consumption-based pricing structures in public cloud environments, ensuring that organizations remain compliant while optimizing their spend.
3. Strategic Renewal Governance - By leveraging forecasting tools from FinOps alongside the contract negotiation skills of ITAM professionals, companies can secure more favorable software renewal terms, thereby aligning their software investments with business goals more effectively.
The FinOps Foundation's 2025 State of FinOps report highlighted an increasing trend where organizations merge FinOps and ITAM/SAM initiatives under a comprehensive framework aimed at shared leadership and cross-functional collaboration. This strategic alliance responds directly to Gartner’s analysis, which predicts that by 2026, most enterprises with developed cloud strategies will combine their FinOps and ITAM functions to reduce redundancies and optimize outcomes.
To support this joint endeavor, the two organizations will:
Martin Thompson, Founder of the ITAM Forum, expressed that this partnership is a natural progression that bridges the gaps between both disciplines, emphasizing the need for collaboration as the landscape of technology expenses grows increasingly complex. He noted the significant value FinOps brings in quantifying value and effectively communicating that to business stakeholders – a skill that will benefit ITAM's practices as well.
In parallel, J.R. Storment, Executive Director of the FinOps Foundation, remarked on the need for unified strategies that bring together real-time cost insights from FinOps with the lifecycle management competencies of ITAM. This partnership is not just about merging practices; it's about creating a strategic synergy that empowers organizations to manage their resources more effectively, achieving optimal cost-efficiency while maintaining strict compliance.
Together, the FinOps Foundation and ITAM Forum are poised to redefine how organizations in the technology sector approach financial accountability and asset management. As businesses continue to expand their Cloud+ environments, the insights gained from this collaboration will help pave the way for revitalized practices that meet the demands of the modern enterprise.
The FinOps Foundation, a prominent non-profit organization under The Linux Foundation, focuses on maximizing the value businesses derive from cloud technologies. FinOps blends financial accountability with technical operations, ensuring that organizations can make informed, data-driven decisions by aligning finance, engineering, and business units. This operational framework, which was established primarily for public cloud cost management, has evolved to include Cloud+, a term that encompasses a diverse range of technology expenditures, including software as a service (SaaS), licensing, and traditional data center costs.
In contrast, the ITAM Forum is a global membership association dedicated to enhancing the IT Asset Management sector, focusing on software inventory, compliance with licensing regulations, and effective management of IT assets. Historically, FinOps and ITAM/SAM (Software Asset Management) have functioned in parallel, with distinct methodologies and outcomes. However, their convergence is increasingly evident as organizations seek greater efficiency and synergy in managing both cost and compliance in technology.
Key intersections between the two domains include:
1. SaaS Inventory Optimization - By integrating FinOps' analytics on usage and costs with ITAM's capabilities for software discovery, companies can more finely tune their SaaS portfolios, eliminating unnecessary expenses and maximizing value.
2. License Compliance in the Cloud - SAM techniques will now be applied to help manage Bring Your Own License (BYOL) models and consumption-based pricing structures in public cloud environments, ensuring that organizations remain compliant while optimizing their spend.
3. Strategic Renewal Governance - By leveraging forecasting tools from FinOps alongside the contract negotiation skills of ITAM professionals, companies can secure more favorable software renewal terms, thereby aligning their software investments with business goals more effectively.
The FinOps Foundation's 2025 State of FinOps report highlighted an increasing trend where organizations merge FinOps and ITAM/SAM initiatives under a comprehensive framework aimed at shared leadership and cross-functional collaboration. This strategic alliance responds directly to Gartner’s analysis, which predicts that by 2026, most enterprises with developed cloud strategies will combine their FinOps and ITAM functions to reduce redundancies and optimize outcomes.
To support this joint endeavor, the two organizations will:
- - Host virtual summits focusing on common challenges and success stories.
- - Establish new working groups dedicated to best practices for integrating FinOps and ITAM.
- - Develop a combined event strategy, featuring dedicated tracks for ITAM at events such as FinOps X in Amsterdam and the ITAM Forum's WISDOM Unplugged in the UK.
- - Create a dedicated Slack channel within the FinOps community for ITAM practitioners to collaborate and share insights.
- - Launch a new training curriculum titled "FinOps for SaaS," which will help practitioners acquire essential knowledge in managing costs and ensuring compliance relating to SaaS and software assets.
Martin Thompson, Founder of the ITAM Forum, expressed that this partnership is a natural progression that bridges the gaps between both disciplines, emphasizing the need for collaboration as the landscape of technology expenses grows increasingly complex. He noted the significant value FinOps brings in quantifying value and effectively communicating that to business stakeholders – a skill that will benefit ITAM's practices as well.
In parallel, J.R. Storment, Executive Director of the FinOps Foundation, remarked on the need for unified strategies that bring together real-time cost insights from FinOps with the lifecycle management competencies of ITAM. This partnership is not just about merging practices; it's about creating a strategic synergy that empowers organizations to manage their resources more effectively, achieving optimal cost-efficiency while maintaining strict compliance.
Together, the FinOps Foundation and ITAM Forum are poised to redefine how organizations in the technology sector approach financial accountability and asset management. As businesses continue to expand their Cloud+ environments, the insights gained from this collaboration will help pave the way for revitalized practices that meet the demands of the modern enterprise.
Topics Business Technology）
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