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Top Cloud Initiative: Optimizing Existing Use of Cloud

Optimizing existing use of cloud is the top initiative — for the seventh year in a row, reported by 62% of respondents in the Flexera 2023 State of the Cloud Report.

"This is a watershed year for cloud usage, as the report findings demonstrate," said Brian Adler, Senior Director, Cloud Market Strategy at Flexera. "We saw FinOps continue to gain traction, cost management challenges pass security as the top cloud challenge for the first time, and artificial intelligence (AI) lead all plans and experimentation of public cloud services. As economic uncertainties wane in the months or years to come, companies will continue to lean into the cloud to transform their businesses, with the goal of finding competitive advantages."

Additional highlights of the report:

Managing cloud spend overtakes security as top cloud challenge

This year marks the first time in more than a decade that managing cloud spend has overtaken security as the top challenge facing organizations. As in previous years, a lack of resources/expertise also continues to be a significant challenge.

Organizations embracing multi-cloud

Respondents indicated a slight drift toward single public cloud usage, with multi-cloud decreasing from 89% last year to 87% this year. Single public cloud usage has increased to 11%, up from 9% last year.

Use of multi-cloud tools by large enterprises is higher for FinOps than for security

Across the board for all organizations, multi-cloud security tools continue to lead, followed closely by tools for multi-cloud cost optimization (FinOps). However, large enterprises reverse the order, with 68% using multi-cloud FinOps tools and 63% using multi-cloud security tools.

Siloed apps and disaster recovery (DR)/failover are the top multi-cloud implementations

Apps siloed on different clouds and DR/failover between clouds have remained the top two multi-cloud implementations. Intelligent workload placement is increasing the fastest (up 20% year over year).

AWS and Azure still lead overall

Last year was the first year Azure surpassed AWS in adoption rates, but as shown in the 2023 report respondents indicated AWS is back on top, with 47% using the provider in significant workloads and 41% using Azure. Oracle, IBM and Alibaba cloud services remained relatively unchanged.

AWS leads SMB public cloud adoption

SMBs (businesses with fewer than 1,000 employees) continue to favor AWS over other cloud providers, with 71% using AWS and 51% using Azure. Usage of Google Cloud Platform among SMBs has significantly decreased, from 43% to 28% year over year.

Big plans for AI

Similar to last year, data warehouse is the most commonly used PaaS offering, followed by DBaaS (relational). Machine learning/artificial intelligence is being experimented with more than any other service; not surprisingly, it’s also the leading PaaS offering that is being planned for use.

Economic uncertainty is growing cloud usage

45% of respondents said economic uncertainty would have very little impact on cloud usage and spend; 9% said they would lower cloud spending somewhat, and 1% said they would lower cloud spending significantly.

Methodology: The survey tapped 750 IT professionals and executive leaders worldwide representing a broad cross-section of industries and context areas in the winter of 2022.

Hot Topics

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

Top Cloud Initiative: Optimizing Existing Use of Cloud

Optimizing existing use of cloud is the top initiative — for the seventh year in a row, reported by 62% of respondents in the Flexera 2023 State of the Cloud Report.

"This is a watershed year for cloud usage, as the report findings demonstrate," said Brian Adler, Senior Director, Cloud Market Strategy at Flexera. "We saw FinOps continue to gain traction, cost management challenges pass security as the top cloud challenge for the first time, and artificial intelligence (AI) lead all plans and experimentation of public cloud services. As economic uncertainties wane in the months or years to come, companies will continue to lean into the cloud to transform their businesses, with the goal of finding competitive advantages."

Additional highlights of the report:

Managing cloud spend overtakes security as top cloud challenge

This year marks the first time in more than a decade that managing cloud spend has overtaken security as the top challenge facing organizations. As in previous years, a lack of resources/expertise also continues to be a significant challenge.

Organizations embracing multi-cloud

Respondents indicated a slight drift toward single public cloud usage, with multi-cloud decreasing from 89% last year to 87% this year. Single public cloud usage has increased to 11%, up from 9% last year.

Use of multi-cloud tools by large enterprises is higher for FinOps than for security

Across the board for all organizations, multi-cloud security tools continue to lead, followed closely by tools for multi-cloud cost optimization (FinOps). However, large enterprises reverse the order, with 68% using multi-cloud FinOps tools and 63% using multi-cloud security tools.

Siloed apps and disaster recovery (DR)/failover are the top multi-cloud implementations

Apps siloed on different clouds and DR/failover between clouds have remained the top two multi-cloud implementations. Intelligent workload placement is increasing the fastest (up 20% year over year).

AWS and Azure still lead overall

Last year was the first year Azure surpassed AWS in adoption rates, but as shown in the 2023 report respondents indicated AWS is back on top, with 47% using the provider in significant workloads and 41% using Azure. Oracle, IBM and Alibaba cloud services remained relatively unchanged.

AWS leads SMB public cloud adoption

SMBs (businesses with fewer than 1,000 employees) continue to favor AWS over other cloud providers, with 71% using AWS and 51% using Azure. Usage of Google Cloud Platform among SMBs has significantly decreased, from 43% to 28% year over year.

Big plans for AI

Similar to last year, data warehouse is the most commonly used PaaS offering, followed by DBaaS (relational). Machine learning/artificial intelligence is being experimented with more than any other service; not surprisingly, it’s also the leading PaaS offering that is being planned for use.

Economic uncertainty is growing cloud usage

45% of respondents said economic uncertainty would have very little impact on cloud usage and spend; 9% said they would lower cloud spending somewhat, and 1% said they would lower cloud spending significantly.

Methodology: The survey tapped 750 IT professionals and executive leaders worldwide representing a broad cross-section of industries and context areas in the winter of 2022.

Hot Topics

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...