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.


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

  • cloud-native network function (CNF)

    A cloud-native network function (CNF) is a service that performs network duties in software, as opposed to purpose-built hardware.

  • Wi-Fi 6E

    Wi-Fi 6E is one variant of the 802.11ax standard.

  • microsegmentation

    Microsegmentation is a security technique that splits a network into definable zones and uses policies to dictate how data and ...

  • MICR (magnetic ink character recognition)

    MICR (magnetic ink character recognition) is a technology invented in the 1950s that's used to verify the legitimacy or ...

  • What is cybersecurity?

    Cybersecurity is the protection of internet-connected systems such as hardware, software and data from cyberthreats.

  • Android System WebView

    Android System WebView is a system component for the Android operating system (OS) that allows Android apps to display web ...

  • privacy compliance

    Privacy compliance is a company's accordance with established personal information protection guidelines, specifications or ...

  • contingent workforce

    A contingent workforce is a labor pool whose members are hired by an organization on an on-demand basis.

  • product development (new product development -- NPD)

    Product development, also called new product management, is a series of steps that includes the conceptualization, design, ...

  • talent acquisition

    Talent acquisition is the strategic process employers use to analyze their long-term talent needs in the context of business ...

  • employee retention

    Employee retention is the organizational goal of keeping productive and talented workers and reducing turnover by fostering a ...

  • hybrid work model

    A hybrid work model is a workforce structure that includes employees who work remotely and those who work on site, in a company's...

  • Salesforce Trailhead

    Salesforce Trailhead is a series of online tutorials that coach beginner and intermediate developers who need to learn how to ...

  • Salesforce

    Salesforce, Inc. is a cloud computing and social enterprise software-as-a-service (SaaS) provider based in San Francisco.

  • data clean room

    A data clean room is a technology service that helps content platforms keep first person user data private when interacting with ...