The FinOps Foundation's annual State of FinOps Report reveals teams are expanding beyond traditional cloud management. Optimization still leads, but governance is rising.

The FinOps Foundation’s latest State of FinOps Report is out, and it’s clear that FinOps is expanding beyond cloud cost management. The survey, representing organizations responsible for more than $69 billion in cloud spend, indicates a significant shift in how companies approach technology financial management. The practice is evolving to cover AI costs, SaaS spend, and private cloud investments. So, what does this shift mean for FinOps teams?

Here’s a breakdown of the report’s biggest insights.

FinOps Priorities: Optimization Still Leads, But Governance Is Rising

If there’s one thing FinOps teams agree on, it’s that workload optimization and waste reduction remain top priorities. Half of all practitioners rank this as their primary focus. But cost allocation (30%) and accurate forecasting (27%) aren’t far behind. One major shift? Governance and policy at scale are gaining traction. As optimization efforts mature, companies are realizing they need solid governance frameworks to sustain savings and prevent cost overruns.

Key insights from the report:

• 50% say workload optimization/waste reduction is the top priority.
• 63% now manage AI spending—double last year’s figure.
• 34% of companies are increasing investment in FinOps tools and skills (+20%).
• FinOps teams juggle 12+ capabilities, including SaaS and private cloud management.

Current priorities

Workload Optimization and Waste Reduction: the clear current top priority for FinOps Practitioners.

Source: FinOps Foundation 2025

Like the 2024 survey organizations continue to look for ways to reduce spending without reducing the value they are getting from their cloud investments.

Future priorities

In the next 12 months, governance and optimization are top for future priorities but managing spend managing additional Scopes of spending is increasing.

Source: FinOps Foundation 2025

The highest changes in priorities are managing AI/ML spend (+4 places), managing costs beyond public cloud (+5 places), and getting to unit economics (+5 places).

The Rise of AI Spend Management

AI adoption is skyrocketing—and so are the associated costs. The report reveals that 63% of organizations are now tracking AI spend, up from 31% last year. Unlike traditional cloud resources, AI spending is supplementary, not a replacement, meaning it adds new layers of cost rather than shifting existing budgets.

Managing AI costs comes with unique challenges:

• GenAI spend is growing fast. No other technology wave is accelerating at this pace.
• AI isn’t just for engineers anymore. Departments across the business are using AI, making cost tracking complex.
• Lack of visibility is a problem. Without proper controls, AI expenses can spiral quickly.

As AI adoption grows, the need for better cost visibility and governance will only increase. Expect AI spend tracking to become a core FinOps capability.

Cloud+ Approach: FinOps Goes Beyond Cloud

FinOps isn’t just about cloud anymore. The cloud+ trend is gaining momentum, with FinOps teams managing SaaS, private cloud, and license costs alongside traditional cloud spend.

• 65% of FinOps teams now oversee SaaS spend.
• Financial services are leading the charge in AI and private cloud investments.
• Cost allocation, budgeting, and forecasting are being applied beyond cloud infrastructure.

This shift shows that FinOps is becoming a broader financial management practice, covering all areas of variable technology spend.

FinOps Teams Are Spread Thin—But There’s Hope

One of the biggest challenges facing FinOps teams? They’re stretched too thin. The report shows that teams are managing over 12 different FinOps capabilities, from optimization and forecasting to governance and SaaS spend tracking.

When priorities pile up, it’s easy for things to be done—but not done well enough to make a real impact. That’s why the organizations seeing the most success are the ones that invest in the right tools and focus on initiatives that truly move the needle.

Looking Ahead: The Future of FinOps

The 2025 report paints a picture of FinOps at a tipping point. Cost allocation is evolving to unify fragmented tech landscapes, showback is emerging as a key governance tool, and AI cost tracking is reshaping the field.

The trend of cloud+ underlines that the intersection of Finops framework capabilities with interconnected disciplines like ITAM is relevant and must be integrated in an organizational cloud strategy.

But perhaps the most telling insight? Investment in FinOps tools and automation is up 20%, signaling that efficiency and scalability will define the next phase of FinOps.

What’s your take? How is your team adapting to these changes? Let’s talk—get in touch to discuss your FinOps strategy!