Global 2000 companies continue to adopt FinOps, putting engineers, finance teams, and business leaders down different, dynamic, and challenging paths toward advancement and growth. Our analysis shows that while there are many fundamentals of FinOps to grow and master, there’s no single path to take. It's a journey of many intersecting ones filled with other travelers.
While no two FinOps journeys are the same for organizations, all paths lead toward building a scalable, successful FinOps culture and practice. No one is ever alone on this collective journey toward better understanding FinOps as there’s much to learn from newcomers and veterans alike.
Our findings indicate that FinOps continues to become a blended discipline of technologists and finance-type roles. 64% of respondents represent finance/accounting, FinOps, and engineering/devops-type roles.
We see the emergence of the Pre-crawl segment across role types, indicating new practitioners springing up from all over the enterprise. A large proportion of management identify as Pre-crawl, indicating the beginning of leading teams on a long FinOps journey.
Contributors are any FinOps roles that aren't a manager, director, or executive-level function. They're individual contributor roles from all types of disciplines across an organization.
Our 2022 findings indicate that FinOps continues to be a well-paying field and career, with over 45% of practitioners reporting salaries of over $100k annually. There are a number of respondents reporting in higher salaries, potentially indicating high-salaried leadership and engineering positions.
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A number of respondents indicate having 10 years of FinOps experience! However, the average career tenure is roughly three (3) years, an increase over 2021’s two-and-a-half (2.5) years. Many respondents report just starting their careers with one (1) year or more of experience.
45% of respondents came from organizations with 10,000 or more employees. This was similar to our 2021 findings.
Our findings show that FinOps teams report to a CTO (43%), CIO (24%), CFO (17%), and other C-level leaders (17%). About 14% indicate that they’re "still figuring it out." Considering that executive buy-in (see below) is a massive influence in building successful FinOps practices, we hope to see adoption increase overall and especially among C-level roles.
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We see an average team size of five (5), lower than 2021’s seven (7) FinOps-dedicated employees. There are a large proportion of members who feel that they’re a “one-person show.” Both findings indicate an increase in practitioners starting their FinOps journeys.
It’s no surprise to see Run-stage respondents represent the larger, established 20+ employee FinOps-focused teams.
Respondents indicate that they hope to see team sizes increase on average to eight (8) members in the next year. This is higher than the average of seven (7) from our 2021 data.
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Our respondent data reflects strength of culture aligning with FinOps maturity level. Newer members start out with no strength of culture. Spread throughout are Crawlers and Walkers starting to build their FinOps cultural momentum.
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Crawl-stage respondents are in a learning state and rely on organic adoption, whereas run-stage respondents push executive directives, grass-roots initiatives, gamifications, and reward systems.
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46% of respondents represent financial services and IT, with 54% representing all types of other industries, further indicating how much FinOps continues to proliferate beyond typical industries wanting to make sense of cloud costs.
A majority of respondents from other named industries make up a considerable amount of Run stage practitioners.
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The Americas have the largest concentration of self-identified Walk and Run practitioners. Let’s take a closer look at how mature these practices are and how much budget these FinOps teams look after. n=976
We can better understand respondents and their FinOps adoption proficiencies and habits by segmenting them by maturity level. Of these segments, the Walkers show the most improvement year-over-year.
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Adjustments to our 2022 data collection increased the granularity in how we segment reported cloud spending. There’s an an increase in FinOps adoption by organizations managing between $50 million and $500 million of cloud costs. A majority of these respondents claim to be of the Walk stage, indicating newer, growing practices managing sizable cloud budgets.
Our respondents' FinOps growth matches their growing need for digital transformation. The Run segmentation dominates the "All-in on cloud" segment, indicating how a mature FinOps practice goes hand-in-hand with full-on cloud adoption (or is required by the best-of-breed teams).
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Last year, practitioners ranked their FinOps challenges and we took charge in creating projects, training, and content to help them master FinOps fundamentals. Here’s how this year’s respondents ranked common FinOps challenges. Note: totals shouldn't add up to 100 percent since we asked respondents to choose their top two choices. n=708, multiple choice and will not add up to 100%
Encouraging Engineers to Take Action remains a top challenge compared to last year. However, it looks like native tools and growing FinOps practices are helping people better understand Shared Costs as that challenge dropped in rankings across maturity levels compared to last year.
These results indicate how the decentralized nature of cloud at scale makes cost optimization difficult to orchestrate. It’s not that advanced teams can’t solve the challenges, but that these challenges grow in complexity as spend and usage grows.
The FinOps Foundation community continues to tackle all of these challenges, creating practical guides and content for everyone to use.
Having the right FinOps tools available can smooth the most tumultuous parts of a journey (especially as cloud usage, cost, and complexity increase). Here are the top tools our respondents report they use daily to manage and forecast cloud costs. n=838, multiple choice
As we’ve noticed over the years, there’s no one tool to rule all of cloud spending. Similar to our 2021 findings, many respondents continue to rely on a mix of native tooling provided by AWS, Azure, and Google Cloud, and third-party tools with an average of 3.7 tools. Surprisingly, homegrown tooling solutions are the ones with a marked increase compared to last year.
While open source tooling is used by a minority, there are large, cloud-native organizations, like Spotify, who are leading the charge.
Learn more about the latest cloud cost management tools and definitions on the FinOps Framework.Tools mentioned by respondents
While everyone’s FinOps paths are different, they all practice the same fundamentals– masters and students alike. This year, we benchmark FinOps best practices across the FinOps Framework Capabilities, revealing new standards of excellence for all practitioners to strive for.
Our respondents represent over $40 billion in collective cloud spend. Here’s how they optimize their usage, utilization, and cost management across FinOps Framework Capabilities.
Our 2022 respondents show that benchmarking around forecasting is much tighter and more accurate than in 2021. Accurate forecasting is time consuming and requires automation and mastery of other FinOps practices to increase efficiency. Seeing how a majority of respondents from all maturity levels report in commonly forecasting weekly or monthly, there still much potential upside here.
Run-stage respondents lead the way in having faster cycles in refreshing their forecasted cloud budgets. Although, a minority of respondents forecast budgets at a weekly cadence, indicating much room for improvement for all. About 21% of respondents report budgeting annually, which is a surprise considering the variability and speed with which cloud infrastructure can change throughout a year.
n=612See the Budget Management Capability
Across maturity levels, practitioners report in mainly utilizing cloud service virtualized instances. Newer pre-crawl respondents represent a large part of this data.
Walkers and Runners represent more container and serverless usage, though still as a smaller portion of their overall compute spend.
n=743See the Resource Utilization and Efficiency Capability
Newcomers have much to learn, and the experienced have plenty of room to grow. We all can shareexperiences and thrive as cloud technology increases in complexity across the enterprise space.
We paired this year’s State of FinOps report tightly with our FinOps Framework, helping practitioners benchmark their practices with that of our global collection of data. Not only can practitioners see performance data, but they can also participate in improving our definitions of best practices and join Working Groups to build new tools and content to help one another along the FinOps journey.