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Report: 81% of IT teams directed to reduce or halt cloud spending by C-suite

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According to a new study from Wanclouds, 81% of IT leaders say their C-suite has directed them to reduce or take on no additional cloud spending as costs skyrocket and market headwinds worsen. After multiple years of unimpeded cloud growth, the findings suggest enterprises’ soaring cloud spending may tempered as talks of a looming downturn heat up.

As organizations move forward with digital transformations they set out on at the beginning of the pandemic, multicloud usage is becoming increasingly unwieldy, and costs are difficult to manage across hybrid environments.

Furthermore, a wrench has been thrown into IT teams’ plans over the last two quarters in the form of the market tumult. Rising inflation and interest rates, along with fears of a potential recession have put increasing financial and operational strain on organizations. As a result, many companies are reevaluating their digital ambitions as cloud spending is brought under the microscope.


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Image source: Wanclouds.

The report by Wanclouds, 2H 2022 Cloud Cost and Optimization Outlook, examines this current challenge for IT teams and the financial pressure they are under from the C-suite and finops. The report reveals that IT decision-makers are taking action to rein in costs, with 39% noting they’ve decided to move or leave significant cloud consumption and high-performance workloads on premise, and a further 29% noting they’ve switched public cloud providers in the first half of 2022 due to high prices. 

Visibility and tracking of cloud spending is also being challenged by the industry’s embrace of hybrid and multicloud infrastructure, which can be more complex to manage. For instance, as containers become increasingly utilized as the go-to platform for hybrid cloud strategies, 70% of those implementing Kubernetes say it has increased their overall cloud spending. In addition, only slightly more than 4 out of 10 IT leaders say they have visibility today into costs and consumption across their entire cloud environment.


Wanclouds commissioned the survey of more than 500 U.S. IT decision-makers in Q3 of 2022.

Read the full report by Wanclouds.

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