Browse Definitions :

Getty Images

FinOps vs. RevOps: What's the difference?

While FinOps and RevOps are similar, they help businesses improve spending in different ways. Learn about how these business initiatives compare.

Organizations are always looking to streamline budgets and spending while maintaining important business initiatives. FinOps and RevOps are two collaborative processes aimed at improving how businesses manage money.

FinOps and RevOps both involve collaboration between important stakeholders within a company, including finance, IT, sales and service. However, they do serve different purposes as FinOps focuses on how a company can better spend money, while RevOps intends to improve how a business drives revenue.

Learn more about both processes in our video.

Transcript

FinOps or RevOps: Which one is better for your bottom line?

As the pace of business quickens, organizations are constantly looking for new and better ways to handle money. Today, new collaborative processes are appearing that can help optimize spending and drive revenue -- especially in technology-related areas. This has led to the rise of two new terms: FinOps and RevOps.

We'll cover the differences between FinOps and RevOps in this video, but you can read more about another comparison -- FinOps vs. DevOps -- by clicking the link above or in the description below.

FinOps is a combination of the terms finance and operations. It's a broad business initiative designed to optimize the way that a business spends money.

FinOps is based on a collaborative team approach where technology, business, engineering and finance leaders come together as a group to consider business goals and needs. They can then structure spending to implement the required resources and infrastructure.

FinOps is most often discussed in terms of IT and modern cloud computing, emerging as a means of centralizing cloud resources, negotiating best costs for those resources, optimizing the use of those resources for best cloud workload performance and then monitoring the impact on the business.

RevOps, on the other hand, is a combination of the terms revenue and operations. It's another broad business initiative intended to streamline and optimize the way that a business drives revenue, or makes money.

Traditionally, sales, marketing and service departments have existed as isolated business. With RevOps, businesses aim to eliminate these silos by aligning -- though not necessarily combining -- these departments to coordinate efforts, unify revenue tools and share customer information.

A RevOps team uses a variety of metrics to measure revenue performance, such as new customer acquisition, customer retention or churn, and customer satisfaction. A RevOps team will often work with IT to access analytics and AI to watch performance trends and identify new revenue opportunities.

FinOps and RevOps are not mutually exclusive and can exist together within the same organization. The two groups can operate independently, though there's likely to be a single business executive or leader sitting on both teams to coordinate the revenue and spending sides of everyday business operations.

Does your organization have a FinOps or RevOps team? Leave your thoughts in the comments below, and be sure to hit that like button.

Dig Deeper on Cloud computing

Networking
  • CSU/DSU (Channel Service Unit/Data Service Unit)

    A CSU/DSU (Channel Service Unit/Data Service Unit) is a hardware device about the size of a modem. It converts a digital data ...

  • data streaming

    Data streaming is the continuous transfer of data from one or more sources at a steady, high speed for processing into specific ...

  • secure access service edge (SASE)

    Secure access service edge, also known as SASE and pronounced sassy, is a cloud architecture model that bundles network and ...

Security
  • application blacklisting (application blocklisting)

    Application blacklisting --increasingly called application blocklisting -- is a network or computer administration practice used ...

  • juice jacking

    Juice jacking is a security exploit in which an infected USB charging station is used to compromise devices that connect to it.

  • hypervisor security

    Hypervisor security is the process of ensuring the hypervisor -- the software that enables virtualization -- is secure throughout...

CIO
HRSoftware
  • recruitment process outsourcing (RPO)

    Recruitment process outsourcing (RPO) is when an employer turns the responsibility of finding potential job candidates over to a ...

  • human resources (HR) generalist

    A human resources generalist is an HR professional who handles the daily responsibilities of talent management, employee ...

  • employee lifecycle

    The employee lifecycle is a human resources model that identifies the different stages a worker advances through in an ...

Customer Experience
  • Adobe Experience Platform

    Adobe Experience Platform is a suite of customer experience management (CXM) solutions from Adobe.

  • virtual assistant (AI assistant)

    A virtual assistant, also called an AI assistant or digital assistant, is an application program that understands natural ...

  • inbound marketing

    Inbound marketing is a strategy that focuses on attracting customers, or leads, via company-created internet content, thereby ...

Close