When we talk about cost management, two frameworks often come up in conversation: FinOps and Technology Business Management (TBM). At first glance, they may appear similar as both deal with IT spend, accountability, and business value. But once you look under the hood, you realize they are fundamentally different disciplines.
Different Goals, Different Audiences
We often forget that it is ‘Cloud FinOps’, born out of variable costing of cloud. It’s an operational framework designed to help cloud architects and engineers better understand finance and business and to help finance and business teams better understand cloud operations. Teams collaborate on cloud spending decisions in real-time. It thrives in environments with high variability and elasticity, where cloud resources can be scaled up, down, or turned off on demand.
By contrast, TBM is a broader framework focused on total technology spend—whether it’s cloud, on-prem, SaaS, infrastructure, labor, or software licenses. TBM is about allocating and reporting on fixed, often pre-approved costs, mapping them to business capabilities and services (e.g., CRM, ERP, data center operations).
In simple terms:
● FinOps = Real-time decisions and optimization in the cloud.
● TBM = Strategic cost transparency and allocation across all technology.
Variable vs. Fixed
FinOps thrives on cloud’s variability. It’s about spotting unused resources, optimizing instance reservations, negotiating vendor agreements like EDPs, PPAs and MCAs, and making daily decisions that directly influence cost and performance—and the list goes on.
TBM operates on fixed cost structures. Most of the spending decisions (e.g., purchasing a new ERP system, hiring developers, long-term licensing) are made by leadership and are not easily adjusted in real time. TBM focuses on associating these costs with business outcomes and enabling financial accountability through visibility. Even labor costs are included in TBM, highlighting that it’s more about cost allocation and value mapping.
Can FinOps Principles Apply to TBM?
With FinOps gaining traction, some organizations are attempting to apply its principles beyond cloud spend, into traditional IT. But here’s the key question:
Can FinOps add value when costs are non-variable?
In most cases, FinOps shines where spend can be influenced. It’s not just about reporting—it’s about empowering engineering teams to act. If there’s no room for change, as is often the case with fixed IT investments, FinOps becomes less effective. Just because “cost is cost” doesn’t mean every cost should be managed with a FinOps mindset. Otherwise, we’d be debating whether to apply FinOps principles to Friday’s office pizza party!
Aligning Without Blending
Despite their differences, there’s value in aligning FinOps and TBM. For example:
● FinOps can provide granular, real-time data to improve TBM reporting.
● TBM can offer strategic context to help prioritize FinOps efforts.
But we must be cautious not to blur the lines. FinOps is not just “finance for cloud” and TBM is not just a “FinOps for everything.” Each has its domain, methodology, and target audience. FinOps and TBM are complementary, go hand in hand, not interchangeable. They both help organizations understand and manage technology costs—but from very different angles.
● Use FinOps where actionable, variable cloud spend exists.
● Use TBM where accountability and strategic cost allocation are the goals.
Understanding these differences helps avoid confusion, set clear expectations, and build better financial practices in tech.
