Cloud costs are on the rise, and strategic oversight is more critical than ever before

Cloud costs are on the rise

United Kingdom, Dec 4, 2025

As many organisations embrace modern ways of working, cloud computing offers them the promise of agility, scalability, and innovation

 

But, as our IT systems become increasingly reliant on cloud infrastructure, the cost of that infrastructure is rising. Many businesses are struggling to keep these costs under control.

The cloud revolution: Opportunity or challenge?

Cloud infrastructure now dominates IT expenditure, and it's projected to account for 83% of total compute and storage spend by 2029. The pace of this expansion is staggering: in the last quarter of 2024 alone, organisations saw a 99.3% year-over-year increase in cloud spend.

While demand for new cloud services remains high, rising costs have forced organisations to question whether their investments have delivered measurable value.

According to IDC, 60% of cloud buyers believe their IT or digital infrastructure needs major transformation, and 82% say their cloud requires modernisation. There are many clear benefits to using the cloud, particularly the speed at which IT teams can launch new services. But those benefits come with their own set of overheads and complexities, most of which are new and unfamiliar. Is this trade-off worth it?

The gap in visibility created by multi-cloud complexity

CIOs are facing a new set of challenges. As business teams feel pressure to embrace new areas like AI, they begin to push their own IT agendas onto IT investment decisions. With IT teams pulled in every direction to consider the needs of all these new agendas when budgeting, it can create a complex, often conflicting set of priorities.

Questions every CIO should ask themselves

Is your business truly optimising its cloud spend? Consider these questions:

  1. Are there cloud services that have been turned off, but are still incurring costs?
  2. Are your cloud services being regularly assessed to ensure usage aligns with the model you're paying for?
  3. If you opted for a pay-as-you-go deal to trial a service, did you switch to a more cost-effective long-term deal when adopting it full-time?
  4. Are you maximising the value of what you've paid for, or are you over-investing in unused capacity?
  5. Are you utilising a cloud marketplace to reallocate spend and access new solutions quickly?

While most businesses openly acknowledge that parts of their cloud infrastructure spend are not optimised, the reality is that IT teams usually lack the resources to remediate them effectively.

The consequences of poor oversight

Without strategic oversight, organisations will see significant wastage. Cost savings of up to 75% are possible, but only if resources are correctly sized and allocated. Over-investment in unused platforms, missed opportunities in marketplace procurement, and a lack of continual assessment—all contribute to wasted spend. Organisations could be redirecting these wasted funds to drive initiatives they would otherwise overlook or push back on due to budget constraints.

Proactive optimisation can make innovation a reality

The answer isn't just to cut costs, it's to transform the approach. By implementing a FinOps framework, organisations can move from reactive cost management to proactive optimisation, ensuring that they feel the impact of every pound spent.

FinOps examines how businesses can optimise their cloud spend to deliver maximum value. Our e-book, Maximising the value of Cloud Investment, to learn more information on how you can create a balance between innovation, sustainability and strategic agility.

 

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