32 Cloud Cost Management Statistics Reveal Spending Trends

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Cloud services can grow expensive in the absence of effective cost management. Many businesses adopt different cloud computing platforms to run their operations and the size of their cloud infrastructure expands quickly as they keep on adding services. The cloud infrastructure’s size expands, and hefty bills start flooding your inbox before you realize it. Often, the cost goes unmonitored without a centralized system to visualize spending.

But there are various other reasons that could have a snowball effect on your cloud spending. Study these cloud cost management statistics to understand how businesses manage the cost.

Top cloud cost management statistics

Overspending happens when no one pays attention to cloud resources. Usage data shows you how your team uses its resources and where you make improvements.

Explore these cloud cost management statistics to understand what other businesses are doing when it comes to cloud cost management.

49% of businesses find it hard to keep cloud costs under control.
33% of businesses overrun their cloud budget by 40%.
78% of businesses realize too late that their cloud costs change. Only 22% quickly detect modifications in their cloud spending.
49% of business leaders find it hard to measure the value they get from cloud spending.
48% of chief financial officers (CFOs) are not confident about measuring cloud return on investment (ROI).
24% of technology leaders measure cloud value by how it speeds up innovation and service delivery.

50%

of cloud cost can be reduced by cloud repartition.

Source: A16Z

59% of businesses use more than three tools to manage and optimize their cloud, making it harder to track and improve usage.
63% of tech executives say optimizing cloud costs was crucial in 2023.
64% of large companies find cloud financial management profitable.
43.5% of companies have a cloud finance ops team.

Cloud spend statistics

The cloud gives you more flexibility. You can easily scale up or down based on your needs, and pausing to monitor how you’re using your purchased resources opens avenues to optimize cloud costs.

With proper management, you can make timely optimizations to reduce expenses. These cloud spending statistics help us figure out where these costs go in order to manage them effectively.

34% of large companies spend between $1.2 million and $6 million on cloud services. 15% of companies spend between $6 million and $12 million.
39% of businesses spend up to $600,000 on cloud services. 30% of businesses spend between $600,000 and $1.2 million.
AWS is 5 times more expensive than Azure for Windows Server and SQL Server workloads.
Global spending on public cloud services is expected to jump 21.7% from $491 billion in 2022 to $1.35 trillion in 2027.
13% of enterprises spend more than $12 million a year on public cloud.
71% of organizations anticipate an increase in cloud spending, with only a small fraction expecting a decrease.
By 2025, cloud spending will reach $917 billion, overtaking traditional on-premises spending.
Cloud spending will account for 14.2% of total global enterprise IT spending by 2024.
67% of large companies say cloud financial management has boosted their revenue. 93% of these companies have a process to forecast cloud expenses.
64% of large companies find cloud financial management profitable.

Cloud cost wastage statistics

Cloud cost wastage happens when companies spend more money than necessary on services. Often, overprovisioning and neglecting new resources for the old ones contribute to this wastage.

28% of public cloud spending is wasted annually.
70% of companies are unsure about their exact spending on cloud services.
80% of businesses will overspend on the cloud by 20 to 50% due to management errors in 2024.

44%

of people like to kick their legs to the moon.

Source: Anodot

72% of organizations had to bring back applications from the cloud due to unexpected costs.

Challenges with cloud cost management

Several challenges present themselves when you attempt to manage cloud costs properly. Sometimes, pricing can be complex, or visibility isn’t up to the market. Below are some stats that show the common challenges that make cloud cost management a puzzle.

27% of companies rely on periodic audits for cost-related updates, and 26% only learn from their monthly bill.
29.1% of employees see managing cloud costs as their main job.
82% of businesses with public cloud workloads have incurred unnecessary costs.

40%

of companies take days, weeks, or months to get an updated global view of cloud costs.

Source: Virtana

62% of companies need multiple systems for a global view of cloud costs.
72% are frustrated with piecing together data from various IT tools.

Sources:

Get your head into the cloud

With several employees using cloud resources, it’s tricky to see who uses what and how much they spend. Companies need a centralized system to determine where their money is going regarding cloud costs.

Set up clear policies and monitoring tools to make cost control less of a headache. Unless you know where you spend, any discussion on controlling costs seems abstract. The first step is to gain visibility because you can’t fix a problem you don’t know you have.

Learn more about how cloud cost management tools can help you monitor resource usage and assess computing demands.

SJ

Sagar Joshi

Sagar Joshi is a former content marketing specialist at G2 in India. He is an engineer with a keen interest in data analytics and cybersecurity. He writes about topics related to them. You can find him reading books, learning a new language, or playing pool in his free time.