Enterprise adoption of public cloud platforms has been skyrocketing. More than half of all enterprise workloads are now running in public clouds, with spending projected to rise by nearly a third this year alone. Many organizations are allocating more than $12 million annually to public cloud services. Despite this massive investment, a significant portion—about 27%—of cloud spend goes to waste. This is especially frustrating as enterprises flocked to the cloud for lower costs, speed, and business agility, yet find themselves grappling with ballooning bills and limited return on investment.
The root of the problem often lies in moving too quickly. Many enterprises view the cloud as an automatic path to efficiency and cost reduction. Still, without a well-defined strategy, they often end up creating complex environments filled with idle resources, unnecessary storage, and hidden networking costs. The confusing nature of cloud pricing, paired with a lack of granular visibility, leaves IT and finance teams scratching their heads over baffling invoices. This complexity prevents organizations from tying cloud spending back to real business value, causing frustration and feeding the cycle of waste.
Plan carefully, act quickly, spend wisely
To make cloud spending work for you, the first step is to stop, assess, and plan. Do not assume the cloud will save money automatically. Establish a meticulous strategy that matches workloads to the right environments, considering both current and future needs. Take the time to analyze which applications genuinely benefit from the public cloud versus alternative options. This is essential for achieving real savings and optimal performance.
