2023 ReporT

State of Cloud Cost and FinOps Market

The State of Cloud Cost, a captivating tale,
Unveiling the trends, the wins, and the trail.

Soaring to New Heights

Cloud Economy is on the rise...

The cloud economy is experiencing a remarkable surge, as businesses and individuals increasingly recognize the value and flexibility offered by cloud computing solutions. With its ability to provide scalable resources, enhanced collaboration, and cost savings, the cloud market has become a key driver of digital transformation.

As of the present, worldwide end-user spending on public cloud services is forecast to grow 20.7% to total $591.8 billion in 2023, up from $490.3 billion in 2022, according to the latest forecast from Gartner, Inc. This is higher than the 18.8% growth forecast for 2022, a testament to its exponential growth and the widespread adoption of cloud technologies across industries.

16.8% CAGR from 2023 - 2030

The global cloud computing market is expected to grow at a compound annual growth rate (CAGR) of 16.8% from 2023 to 2030, doubling every 4 years.

$2.28 T Valuation by 2030

The global cloud computing market is expected to be worth $2.28 trillion by 2030. This is a significant increase from the current market value of $600 billion.

90% of global firms to embrace cloud

Cloud's growth will drive its adoption by millions of new global businesses. A recent IDC study predicts 90% business cloud use by 2025.

*Source: Gartner

Market Dominance Unveiled

Comparative Revenue Overview of GCP, AWS, and Azure (2022-2023)

In 2022, GCP (Google Cloud Platform) generated revenue of $25.7 billion, while AWS (Amazon Web Services) and Azure earned $55.4 billion and $39.5 billion, respectively.

However, in 2023, there is a projected increase in revenue for all three cloud computing giants. GCP's estimated revenue is expected to reach $32.5 billion, indicating significant growth. AWS, already leading the market, is projected to generate $62.7 billion in revenue, maintaining its dominance. Azure is also anticipated to experience growth, with an estimated revenue of $44.6 billion.

These figures suggest that all three platforms are experiencing steady expansion in their respective markets, reflecting the increasing demand for cloud-based services and highlighting the intense competition among these industry leaders.

A Closer Look at the leading customers of the Power Trio

AWS is the clear leader in the cloud computing market, with a market share of over 33% in 2022. Azure is second, with a market share of over 22%, and GCP is third, with a market share of over 10%.

Among the top customers, GCP counts Spotify, Twitter, and Target; AWS boasts Netflix, Airbnb, and NASA; and Azure attracts the likes of Intel, Adobe, and Verizon, exemplifying the broad spectrum of organizations harnessing these leading cloud services for their technological needs.


*Source: CNBC & Statista

Harnessing the Cloud

Growth Insights in the Multi-Cloud Optimization Tools Market

  • Market Size: The multi-cloud optimization tools market was estimated to be worth US$ 11.4 billion in 2022.
  • Growth Rate: The market is expected to grow at a healthy compound annual growth rate (CAGR) of 15.4% during the period of 2022-2032.
  • Market Value Projection: By 2032, the market is projected to surpass US$ 47.6 million.
  • Adoption by Large Organizations: The growing adoption of multi-cloud optimization tools by large organizations is expected to propel market demand.
  • U.S. Market Growth: The U.S. multi-cloud optimization tools market is anticipated to grow at a CAGR of 13.8% during the forecast period.
  • Factors Driving Market Growth: The adoption of multi-cloud optimization tools is driven by factors such as cost optimization, resource discovery, cloud migration, real-time access to platforms, and the need to avoid single-cloud dependability and vendor lock-in situations.
  • Challenges: The market growth may be hindered by challenges such as a shortage of qualified workers, network updates for cloud deployment, and upfront costs associated with redesigning networks.

*Source: GlobeNewswire

Innovation in the Cloud

Showcasing the Top Services and Startups in Cost Management

In 2022, the cloud cost management landscape witnessed a remarkable surge as cloud providers such as AWS, GCP, and Azure introduced an impressive array of new services. Simultaneously, a wave of innovative startups emerged to cater to the growing demand in this space. A staggering total of 45 new services were unveiled by the leading cloud providers, while 78 startups entered the market, offering cutting-edge solutions for cloud cost management.

Looking ahead to 2023, the momentum shows no signs of slowing down. Experts predict that the number of new services directly from cloud providers will increase by 20%, reaching a remarkable 54 offerings. Additionally, the startup ecosystem is set to expand further, with an estimated 100 new companies venturing into the cloud cost management sector.

Among the notable services and startups that has emerged till now are as follows:

Top Services

Amazon Elastic Compute Cloud (EC2)
A web service that provides resizable compute capacity in the cloud, allowing users to run applications.
Amazon Simple Storage Service (S3)
An object storage service that offers industry-leading scalability, data availability, security, and performance.
Amazon Relational Database Service (RDS)
A managed database service that makes it easy to set up, operate, and scale a relational database in the cloud.
Google Compute Engine
A service that provides virtual machines for running applications.
Google Cloud Storage
A scalable object storage service for storing and retrieving data.
Google Kubernetes Engine
A managed environment for deploying, managing, and scaling containerized applications using Kubernetes.
Azure Virtual Machines
A service that provides virtual machines for computing power in the cloud.
Azure Storage
A scalable cloud storage service that supports various types of data storage, including blobs, files, queues, and tables.
Azure App Service
A fully managed platform for building, deploying, and scaling web apps and APIs.

Emerging Players

Economize is a cloud cost optimization software that helps you analyze, manage and optimize your AWS and Google cloud costs.
Cast AI
CAST AI is the leading all-in-one platform for Kubernetes automation, optimization, security, and cost management.
CloudZero is a cloud cost intelligence platform that puts engineering in control by connecting technical decisions to business results.
Infracost shows cloud cost estimates for Terraform. It lets engineers see a cost breakdown and understand costs before making changes, either in the terminal, VS Code or pull requests.
IBM Turbonomic hybrid cloud cost optimization software is used by customers to assure application performance while eliminating inefficiencies by dynamically resourcing applications across hybrid and multicloud environments.
Vantage is a self-service cloud cost platform that gives developers the tools they need to analyze, report on and optimize AWS, Azure, and GCP costs.
Skyrocketing VC Investments

VC Funding Fuels Cloud Cost Management

The cloud cost management sector has experienced an astonishing surge in venture capital (VC) investments, propelling it to new heights of innovation and growth.

According to Crunchbase, the following is the amount of VC funding that has gone into the cloud cost management space from 2020 to 2023 (predicted):


Amount (USD)

$1.6 billion
$2.7 billion
$3.4 billion
2023 (predicted)
$4.2 billion

*Source: Crunchbase & CBINSIGHTS

Diving into the Depths

Counting the Abundance of FinOps Roles

With a recent survey of major industries and organizations, it was discovered that the demand for FinOps professionals has multiplied by a staggering 300% in the last two years alone. This surge in demand signifies the increasing recognition of the crucial role played by FinOps in optimizing financial operations.

Today, there are countless FinOps positions available across various sectors, ranging from startups to multinational corporations. The numbers speak volumes: job boards feature an impressive average of 500 new FinOps job postings each month, a significant increase from the mere handful just a few years ago.

Insights into the Growing FinOps Market

  • Rapid Growth: The number of FinOps roles and jobs in the market is increasing rapidly. The FinOps Foundation report states that there are already over 10,000 FinOps professionals worldwide, with a projected growth to over 25,000 by 2025.
  • Common FinOps Roles: The most common FinOps roles include FinOps Manager, FinOps Architect, FinOps Analyst, FinOps Engineer, and FinOps Consultant. These roles have distinct responsibilities related to developing and implementing FinOps strategies, managing cloud costs, measuring and reporting on cloud usage, and optimizing cloud costs.
  • Competitive Market: The FinOps job market is highly competitive. As the demand for FinOps professionals grows, salaries are also rising. The average salary for a FinOps Manager is now over $150,000.
  • Certification and Skills: To prepare for a career in FinOps, it is advisable to earn a certification in FinOps, such as the FinOps Practitioner or FinOps Certified Practitioner certifications offered by the FinOps Foundation. Additionally, gaining experience in cloud computing and finance is beneficial, either through relevant job roles or by taking courses in these fields.
  • Networking Opportunities: Networking with other FinOps professionals can be advantageous. Engaging with FinOps communities and organizations like the FinOps Foundation and the FinOps Community can provide insights into job opportunities and career advancement advice.

*Source: FinOps Foundation

Shifting Skies

Emerging Trends in Cloud Computing

With over half of all workloads and data now residing in the public cloud and 65% of companies reporting heavy usage, the cloud's prominence continues to grow. In this landscape, organizations face new challenges and priorities. Managing cloud spend takes the lead as the top concern for 82% of respondents, surpassing security at 79%. Moreover, nearly a quarter of respondents spend over $12 million per year on public cloud services, and 18% report exceeding their original budget.

This captivating shift in focus from security to cost management sets the stage for exploring other emerging trends and innovations in cloud computing.

Cost management trumps security

Managing cloud spend has become the primary challenge for cloud decision-makers, with 82% of respondents indicating it as their top concern, edging out security at 79%. Organizations are becoming more comfortable with cloud security but need to address the increasing expenses associated with their reliance on cloud services.

Growing reliance on cloud

Cloud adoption continues to increase, with more than half of all workloads and data now in the public cloud. Approximately 65% of respondents report heavy usage of public cloud, and the majority (86%) utilize multicloud or hybrid cloud environments.

Multicloud implementation

Among organizations using multiple clouds, the top implementations are siloed applications on different clouds (44%) and disaster recovery or failover between clouds (42%). Security tools (30%) and cost optimization (finops) tools (29%) are the most-used multicloud tools, particularly among enterprises.

Increasing cloud spending

Cloud spending is anticipated to grow, with approximately 30% of respondents expecting an increase in cloud spend over the next 12 months. Approximately 24% of respondents already spend over $12 million per year on public cloud services, and 18% report that their current cloud spend exceeds their original budget.

Market leaders

Amazon Web Services (AWS) and Microsoft Azure continue to lead as the top cloud providers, with AWS having a slight edge over Azure. Google Cloud Platform and Oracle Cloud Infrastructure are tied for the expected growth in terms of experimentation or planned usage.

Cloud cost optimization challenges

While self-estimated wasted cloud spend has decreased slightly, optimizing costs and minimizing waste remains a challenge. Key migration challenges include understanding application dependencies, assessing technical feasibility, and right-sizing or selecting the best instance.

Growing importance of finops teams

Finops, the practice of cloud cost management, is becoming a priority for organizations. Around 72% of respondents have a dedicated finops team, and an additional 14% are planning to establish one in the next twelve months. Responsibilities for cloud cost management are shifting from vendor management and finance teams to finops teams.

Areas for improved cost optimization

Many organizations are not fully utilizing provider discounts, with approximately two-thirds of respondents not taking advantage of available discounts. Implementing unit economics models for cloud cost analysis is gaining traction, with 39% of organizations having already implemented it, indicating potential growth in this area.

*Source: InfoWorld Article

Mastering the Cloud

Key Conferences and Events

This carefully curated collection highlights renowned events like AWS Re:invent, KubeCon, GCP Next, FinOps X, and VMware Explore, where industry experts, thought leaders, and cloud enthusiasts converge to share cutting-edge insights, best practices, and innovative solutions.

Join these conferences to stay at the forefront of cloud technology, gain invaluable knowledge, network with industry peers, and unlock the secrets to mastering the cloud for optimal cost efficiency and management success.




AWS Re:Invent
27th Nov - 1st Dec, 2023
Las Vegas, Nevada
KubeCon + CloudNativeCon
Depends on region
NA & Europe
GCP Next
29th - 31stAug, 2023
Moscone Center, San Francisco
FinOps X
27th - 30th June, 2023
San Diego, California
VMware Explore
Depends on region
Las Vegas, Barcelona, Tokyo, Singapore & São Paulo

* Please note that these dates & locations are subject to change. For the most up-to-date information, please visit the websites of the respective conferences.