April Burghardt
Cloud Capital has released new research showing that cloud infrastructure has become one of the most significant sources of financial volatility and margin pressure for start-up SaaS and technology companies. As cloud costs rise and become more unpredictable, CFOs are stepping in to take direct ownership of cloud governance and financial control.
The report, “The Cost of Compute: What 100 CFOs Reveal About Cloud Infrastructure’s Impact on the P&L,” surveyed 100 CFOs and senior finance leaders at SaaS and technology companies with up to 1,000 employees across the US and UK. The findings reveal a sector under mounting pressure from cloud economics:
Cloud spend now averages nearly 10% of revenue
Nearly one quarter of CFOs report cloud costs consuming 13–20% or more of revenue
Cloud infrastructure is now the second-largest operating cost, behind only payroll
AI and machine learning account for 22% of total cloud spend
89% say rising cloud costs have eroded profitability
97% have implemented formal cloud governance policies
The research highlights a structural shift over the past 12–18 months, as responsibility for cloud cost management moves decisively into the finance organization. What was once treated as a flexible, engineering-led expense has become a material financial risk. For many SaaS businesses, cloud typically represents 6–12% of revenue, while AI-native companies report cloud costs as high as 30–40%. As a result, CFOs are increasingly assuming direct ownership or establishing joint Finance–Engineering governance models.
The data shows this shift delivers measurable financial benefits. Organizations with Finance directly involved in cloud cost management are twice as likely to achieve highly predictable cloud forecasts, defined as less than 5% monthly variance. COGS confidence improves by 50%, and overall cost visibility increases by 25%. Cloud Capital believes these gains reflect a structural advantage created by finance-led governance, not incremental optimization.
Edward Barrow, CEO and Co-Founder of Cloud Capital, said: “CFOs report month-to-month cloud variability of 5–10% as standard. That level of unpredictability would be unacceptable for any other major expense. Cloud’s financial behavior is now completely out of line with traditional cost controls, and that’s what’s driving CFOs to take ownership.”
Looking ahead to 2026, improving forecast accuracy ranks as the top cloud priority for CFOs, cited by 44% of respondents. While AI now represents nearly a quarter of cloud spend, finance leaders are taking a pragmatic approach: 72% say they are willing to accept short-term margin compression if AI investments drive long-term growth and competitive advantage.
Casey Woo, Co-Founder and CEO of Operators Guild, commented: “Cloud has moved into the top tier of operating costs, and AI workloads are accelerating that trend. Forecast variance at this scale would be unthinkable in any other cost center, and margins increasingly reflect how well companies can see, model, and govern cloud spend.”
Barrow added: “Cloud infrastructure is now central to business performance. The next frontier for CFOs is building agile, data-driven financial governance that balances innovation with predictability. Cloud economics has become a core leadership responsibility.”
