Description: The ‘Non-Cloud Costs’ refer to expenses that are not directly associated with cloud computing services but can significantly influence an organization’s overall budget planning. These costs may include expenses related to on-premises IT infrastructure, such as physical servers, hardware maintenance, software licenses, and operational personnel costs that are not linked to cloud management. Identifying and managing these costs is crucial for an effective FinOps strategy, as it allows companies to have a more comprehensive view of their technology spending. By not considering these costs, organizations may underestimate their total technology expenditure, leading to ineffective financial decisions and a lack of alignment between business objectives and technology investments. Therefore, it is essential for companies to integrate these costs into their financial analysis to optimize resource use and maximize return on investment in their technology initiatives.
