Who Should Own Cloud’s Hidden Tax?
- By CDOTrends editors
- April 28, 2024
The cloud revolution promised flexibility and scalability, but now everyone’s wondering at what costs.
A new report from cloud cost management platform CloudZero reveals that the bills are piling up. Most companies are struggling to control spiraling cloud-related expenses.
In 2024, a disquieting 58% of businesses admit that their cloud costs are too high, suggesting that the cloud's financial storm clouds aren't clearing anytime soon. And the year has not even come to an end.
Sticker shock and lost productivity
The report doesn't just highlight financial waste. It paints a picture of widespread disruption caused by out-of-control cloud spending.
An overwhelming 89% of employees—from engineers to finance professionals—say a lack of visibility makes it difficult for them to do their job effectively.
In one of the most alarming findings, 22% of engineers claim their work suffers major disruptions, while 23% of financial professionals said the same, suggesting cloud costs have gone from a headache to a full-blown crisis.
It might seem like just numbers on a spreadsheet, but unmanaged cloud costs have significant human consequences.
Three out of four employees fear sudden cost spikes threatening their jobs. This anxiety is even more pronounced at large corporations (over 9,000 employees), where 100% of employees see their livelihoods tied to controlling the cloud bill.
Time to shift ownership
So, what's the solution? CloudZero's report argues for a crucial shift: engineering teams must take ownership of cloud costs.
The data backs up this claim. Companies where engineers have a stake in cloud spending show significant improvements—81% report better overall cost management, and 68% gain the ability to align costs with business goals. CloudZero's message is clear: put engineers in charge of costs and watch them rein in spending.
“The data has shown that when engineering does take ownership of cloud costs, businesses gain a clearer understanding of costs, leading to improved reporting accuracy and the alignment of engineering and finance teams,” says Bill Buckley, senior vice president of engineering at CloudZero. “The shift fosters increased business and job confidence and improved efficiency.”
The takeaway
CloudZero's report is a stark reminder that the era of casual cloud spending is over. Companies that ignore the bottom line while migrating to the cloud face mounting operational difficulties and a workforce burdened by financial anxiety.
However, a change in approach—empowering engineers to become cloud cost stewards—could pave the way to a more fiscally responsible and sustainable cloud-driven future.
“Out-of-control cloud costs foreground the need for better visibility and company-wide initiatives for cloud cost management,” said Buckley. “Our study has proven that businesses must empower engineering with ownership of cloud costs as it is clear that it emerges as a key driving factor for better cost management and the alignment of priorities between engineering and finance teams.”
But will companies listen?
Image credit: iStockphoto/Rudzhan Nagiev