Realizing Positive Cloud Value and Business Objectives to Maximize Cloud ROI

Realizing Positive Cloud Value and Business Objectives to Maximize Cloud ROI

Welcome to the first article in our Cost Optimization series!

Cloud costs are also becoming increasingly complicated to keep track of, especially in multi-cloud environments. Did you know, for example, that 44% of executives say a third of their cloud spend is wasted annually, while 46% blamed overprovisioning as the main culprit behind cloud waste? Fortunately, there’s a solution!

In this blog, we discuss: The Shift from Cost Reduction to Value Realization

Rather than lowering financial input or tightening pursestrings, businesses must expand their view to consider the long-term results of any investment.

In short, to think smart, not cheap.?

Achieving higher optimization maturity in cloud cost management means evolving from a reactive cost-cutting mindset to a proactive, data-driven approach.

How??

  • Aligning with strategic business goals, ensuring that reductions in spending support, rather than hinder, growth and innovation.
  • Ensuring efficiency involves streamlining processes, automating tasks, and eliminating waste to get better results with fewer resources.
  • Transparent tracking of cost and performance metrics drives long-term impact, ensuring accountability to avoid mismanagement and ensure that cost-saving efforts are implemented across the board.

It’s also important to consider the key challenges in cloud cost management. Two major things to watch out for are complexity and lack of visibility.

And that’s where effective cloud cost management platforms come in, providing a solution to prevent lock-in, sticker shock, and unexpected overages with three pillars:

Visibility & Cost Transparency

Actively monitor and adjust your allocation and budget, spending where you need to with far less waste and underutilized resources.?

Optimization & Cost Efficiency

Reduce cloud costs while maximizing performance with auto-scheduling and rightsizing measures.

Governance & FinOps Culture

Cross-functional accountability ensures that everyone is aligned on financial goals and cloud usage. To achieve this, invest in granular cost visibility across teams, projects, business units, and cloud environments.

Now is the right time to shift from a cost-cutting mindset to a value-driven cloud strategy, focusing on long-term benefits such as innovation, scalability, and overall business growth while effectively managing cloud costs.

Read more and learn how to adopt a proactive approach to value realization!

Next up: Advanced Strategies for Cloud Cost Optimization?

David Linthicum

Internationally Known AI and Cloud Computing Thought Leader and Influencer, Enterprise Technology Innovator, Educator, Best Selling Author, Speaker, GenAI Architecture Mentor, Over the Hill Mountain Biker.

2 周

This shift from cost reduction to value realization is absolutely the right approach. It’s no longer enough to focus solely on cutting expenses—cloud investments need to drive measurable value tied directly to business outcomes. Organizations must stop thinking of cloud as just a cheaper infrastructure and instead treat it as a core enabler of innovation and growth. What we’re seeing, especially in multi-cloud environments, is that the complexity of managing costs, usage, and optimization increases significantly. The old strategies of tightening budgets and reactive cost cutting just don’t work in these dynamic environments. Instead, businesses need to focus on making informed, proactive choices that maximize value—such as investing in enhanced customer experiences, improved analytics, or tools that drive automation and efficiency. A big part of this shift is fostering greater visibility and accountability. Without insights into cloud consumption and better financial governance (like through FinOps tools), it’s hard to align cloud spending with the value it provides. Collaboration across IT, finance, and leadership is essential to ensure cloud budgets aren’t just optimized but actively working toward company goals.

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