New Research Reveals the FinOps Paradox: High Adoption Rates but Actual Results Still Await Breakthroughs
On June 22, 2023, CloudBolt Software released its tenth industry insight report, based on a survey of 500 executives, engineers, and developers, finding that FinOps adoption rates reach as high as 98%, but 44% of existing teams were established less than a year ago, and 45% of respondents have doubts about its real-world effectiveness. The report points out that insufficient foundational capability building and ambiguous responsibility allocation constrain the realization of FinOps value.
North Bethesda, MD — CloudBolt Software, a leader in automation, optimization, and governance for hybrid and multi-cloud environments, today released its latest research report, "The Real State of FinOps." Part of the CloudBolt Industry Insights (CII) series, the report aims to help business decision-makers cut through industry noise and gain a clear picture of cloud cost management through objective, comprehensive analysis of market trends and opportunities.
"Few new disciplines in business history have risen and been adopted as quickly as FinOps," said Craig Hinkley, CEO of CloudBolt Software. "Our research shows that 98% of organizations either have a formal FinOps practice in place or are planning to implement one. This is partly due to the excellent work of the FinOps Foundation, and it also reflects how critical cloud financial management has become."
This report, the tenth in the CII series, is based on a survey conducted by Wakefield Research in May 2023, with a sample of 500 executives, engineers, and developers from enterprises with more than 5,000 employees in the United States, Canada, the United Kingdom, and Australia. The data shows that FinOps' current trajectory remains promising, but more effort is needed in controlling the complexity of cloud costs and realizing tangible value from FinOps frameworks and investments.
The Positive: FinOps Goes Mainstream and Gains Strategic Importance
The survey shows that FinOps has evolved from a niche concept to a core pillar of enterprise financial strategy, with organizations across industries making it a priority.
FinOps Teams Widespread but Young
More than four-fifths of organizations (82%) have established formal FinOps teams, with another 16% actively considering adding one. However, nearly half (44%) of existing teams have been in place for no more than 12 months. As many as 89% of respondents view FinOps as a "silver bullet" for addressing the complexity of cloud cost management. The average FinOps team size is 4.1 people, and 53% of teams are led by a director-level head.
Budgets and KPIs Significantly Improved
71% of respondents reported an increase in FinOps-related funding (including personnel and technology investments) in 2023. Additionally, 58% of organizations now report FinOps key performance indicators (KPIs) to C-level executives or their board of directors.
Rising Strategic Status
68% of respondents emphasized the importance of FinOps in their organization's 2023 strategic priorities; 71% said that without a FinOps practice, achieving this year's IT goals would face significant challenges; and 74% indicated that FinOps is now as important as traditional IT domains such as ITOps, DevOps, and SecOps.
The Concerns: Weak Foundations, Dispersed Responsibility, and Questioned Effectiveness
Beyond delayed tangible results, the report also reveals other issues worth noting:
Foundational Capabilities Still Need Strengthening
Although advanced capabilities such as cost allocation, chargeback, automated remediation, and anomaly detection are hot topics in the FinOps community, most respondents are still struggling to build a solid foundation. 48% listed commitment-based purchases like reserved instances and savings plans as their top priority. 46% of engineers and developers believe basic visibility and reporting capabilities are still lacking, while executives ranked this capability lowest in importance, at only 36%.
Responsibility Too Concentrated
The core principle of FinOps emphasizes that cloud cost management is a shared responsibility across the organization. However, only 9% of respondents agree with this view, while 58% believe responsibility should rest with a specific team or leader.
Nearly Half Question Actual Effectiveness
Despite the enthusiasm, 45% of respondents (nearly half) expressed skepticism about FinOps' effectiveness in the real world. Specifically, 15% believe FinOps is "simple in theory but difficult in practice," 13% view it as "making a mountain out of a molehill," 10% call it "just a suggested framework," and 7% label it a "necessary evil."
"FinOps has rapidly evolved from a niche concept to a critical discipline widely adopted by organizations globally," said Kyle Campos, CTO of CloudBolt Software. "While challenges remain, the growing size of FinOps teams and their rising strategic importance demonstrate market demand and potential. By leveraging the right tools and fostering a culture of shared responsibility, organizations can accelerate FinOps' positive impact on the business—no one can afford to fall behind by waiting 2 to 3 years or more to see results. Entropy, waste, and friction are the default traits of enterprises (and any organization), and the successful ones will combat them decisively, creating a virtuous cycle of efficiency and speed."
For more details, read thefull report。
About CloudBolt
CloudBolt helps organizations optimize, automate, and gain better control over hybrid and multi-cloud environments. With industry-leading cloud financial management, automation and orchestration, and governance solutions, CloudBolt simplifies complexity for global enterprises and service providers, rapidly maximizing cloud value. CloudBolt is backed by Insight Partners, has won numerous awards, and has been named to the Deloitte Technology Fast 500 and the Inc. 5000 lists multiple times. For more information, visitwww.cloudbolt.io。
