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Top Cloud Trends for 2025: Wrangling Cloud Spend, Expanding FinOps Teams, and Adopting GenAI

Brian Adler
Flexera

Cloud computing evolves rapidly, with each year bringing new technologies and trends that IT professionals must navigate. The Flexera 2025 State of the Cloud Report spotlights these pressures and how they are set to shape IT strategy in the year ahead, leveraging the expert insights of over 750 global cloud decision-makers.

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, this year's report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies.

Cloud Usage Continues to Grow Amid Repatriation Efforts

One thing is clear: organizations are still embracing the cloud. In fact, it seems that many have arrived at their steady state, having settled into an efficient and effective cloud environment that meets their standing needs. For most enterprises, this manifests in a hybrid cloud strategy with at least one public and one private cloud.

In particular, public cloud spend continues to increase. The report uncovered 33% of organizations are spending more than $12 million annually on public cloud alone, up from 29% last year. Among large enterprises, that figure increases to 40%. Along with these growing percentages, some organizations are exploring cloud repatriation.

Today, the current cloud inefficiencies and potential for cost savings are being factored into some IT decision discussions, as leaders consider the option of moving certain workloads from the cloud and back to on-premises data centers. However, this shift toward repatriation is happening slowly. Only 21% of cloud workloads have been repatriated, which is far outpaced by the rate of net-new cloud projects. Even with some moving their workloads to non-cloud environments, cloud usage is still on the rise — now and in the foreseeable future.

Cost Management and Security Sit Top of Mind

Year-over-year, managing cloud spend remains the top challenge for organizations. As additional workloads migrate to the cloud and the associated cost increases, so does the pressure to optimize that spend. A large majority (87%) of respondents cite "cost efficiency/savings" as their top metric for validating team success against cloud goals, further underscoring this narrative. Notably, this year, "cost avoidance," which can be achieved with proper license management, was resurgent among secondary progress metrics, rising from 28% to 64%.

The difficulty of accurate forecasting has also helped turn managing cloud spend into a perennial problem. Organizations are seeking to solve forecasting challenges — and overspending — with the use of FinOps teams. With the proper FinOps framework, organizations are empowered to maximize the business value of cloud, enable timely, data-driven decision making, and encourage cross-team collaboration for greater financial accountability. 86% of organizations either currently have a dedicated FinOps team responsible for some or all of their cloud cost optimization tasks or are planning to implement one within the next year and beyond. Understanding the value of these practices, the number of organizations not using a FinOps team dropped by 6 percentage points from 2024.

Beyond cloud spend, security also received a podium finish, coming in as the second-largest concern for cloud initiatives. In an age of increasingly advanced cyber threats, it's no surprise that security weighs heavy on the minds of many respondents. Specifically, 75% identified governance, managing software licenses, and a lack of resources and expertise as the main drivers behind security concerns.

Generative AI Is Here to Stay

Having dominated industry conversation over recent years, AI, especially generative AI (GenAI), is moving beyond hype to enterprise integration. An impressive 83% of organizations are already using or currently experimenting with GenAI — the most interest any new Platform-as-a-Service offering has generated in the State of the Cloud Report's 14-year history.

The rate of adoption will only continue to increase as the technology advances, becoming more accurate and widely incorporated in daily workflows, products, and services. Last year, 14% of organizations reported not using GenAI. This year, that figure has plummeted to just 1% of organizations. The use of data warehouse services also surged this year, and given they are often used to feed AI models, serves as yet another indicator that GenAI is clearly here to stay long-term.

What's Coming

Looking ahead to the rest of 2025 and beyond, cloud initiatives will be defined by this skyrocketing interest in emerging technologies like GenAI, and the need to optimize spend associated with growing cloud usage. In the coming years, FinOps is likely to emerge as the new normal for combating cost challenges.

Understanding cloud usage and mastering cloud management isn't an easy task, but it can be done with proper oversight and a team of collaborative professionals. It remains to be seen what technologies pass the tipping point from novel to necessity and continue to make an impact. 

Brian Adler is Senior Director of Cloud Market Strategy at Flexera

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IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

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In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

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From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...

Today, organizations are generating and processing more data than ever before. From training AI models to running complex analytics, massive datasets have become the backbone of innovation. However, as businesses embrace the cloud for its scalability and flexibility, a new challenge arises: managing the soaring costs of storing and processing this data ...

Top Cloud Trends for 2025: Wrangling Cloud Spend, Expanding FinOps Teams, and Adopting GenAI

Brian Adler
Flexera

Cloud computing evolves rapidly, with each year bringing new technologies and trends that IT professionals must navigate. The Flexera 2025 State of the Cloud Report spotlights these pressures and how they are set to shape IT strategy in the year ahead, leveraging the expert insights of over 750 global cloud decision-makers.

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, this year's report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies.

Cloud Usage Continues to Grow Amid Repatriation Efforts

One thing is clear: organizations are still embracing the cloud. In fact, it seems that many have arrived at their steady state, having settled into an efficient and effective cloud environment that meets their standing needs. For most enterprises, this manifests in a hybrid cloud strategy with at least one public and one private cloud.

In particular, public cloud spend continues to increase. The report uncovered 33% of organizations are spending more than $12 million annually on public cloud alone, up from 29% last year. Among large enterprises, that figure increases to 40%. Along with these growing percentages, some organizations are exploring cloud repatriation.

Today, the current cloud inefficiencies and potential for cost savings are being factored into some IT decision discussions, as leaders consider the option of moving certain workloads from the cloud and back to on-premises data centers. However, this shift toward repatriation is happening slowly. Only 21% of cloud workloads have been repatriated, which is far outpaced by the rate of net-new cloud projects. Even with some moving their workloads to non-cloud environments, cloud usage is still on the rise — now and in the foreseeable future.

Cost Management and Security Sit Top of Mind

Year-over-year, managing cloud spend remains the top challenge for organizations. As additional workloads migrate to the cloud and the associated cost increases, so does the pressure to optimize that spend. A large majority (87%) of respondents cite "cost efficiency/savings" as their top metric for validating team success against cloud goals, further underscoring this narrative. Notably, this year, "cost avoidance," which can be achieved with proper license management, was resurgent among secondary progress metrics, rising from 28% to 64%.

The difficulty of accurate forecasting has also helped turn managing cloud spend into a perennial problem. Organizations are seeking to solve forecasting challenges — and overspending — with the use of FinOps teams. With the proper FinOps framework, organizations are empowered to maximize the business value of cloud, enable timely, data-driven decision making, and encourage cross-team collaboration for greater financial accountability. 86% of organizations either currently have a dedicated FinOps team responsible for some or all of their cloud cost optimization tasks or are planning to implement one within the next year and beyond. Understanding the value of these practices, the number of organizations not using a FinOps team dropped by 6 percentage points from 2024.

Beyond cloud spend, security also received a podium finish, coming in as the second-largest concern for cloud initiatives. In an age of increasingly advanced cyber threats, it's no surprise that security weighs heavy on the minds of many respondents. Specifically, 75% identified governance, managing software licenses, and a lack of resources and expertise as the main drivers behind security concerns.

Generative AI Is Here to Stay

Having dominated industry conversation over recent years, AI, especially generative AI (GenAI), is moving beyond hype to enterprise integration. An impressive 83% of organizations are already using or currently experimenting with GenAI — the most interest any new Platform-as-a-Service offering has generated in the State of the Cloud Report's 14-year history.

The rate of adoption will only continue to increase as the technology advances, becoming more accurate and widely incorporated in daily workflows, products, and services. Last year, 14% of organizations reported not using GenAI. This year, that figure has plummeted to just 1% of organizations. The use of data warehouse services also surged this year, and given they are often used to feed AI models, serves as yet another indicator that GenAI is clearly here to stay long-term.

What's Coming

Looking ahead to the rest of 2025 and beyond, cloud initiatives will be defined by this skyrocketing interest in emerging technologies like GenAI, and the need to optimize spend associated with growing cloud usage. In the coming years, FinOps is likely to emerge as the new normal for combating cost challenges.

Understanding cloud usage and mastering cloud management isn't an easy task, but it can be done with proper oversight and a team of collaborative professionals. It remains to be seen what technologies pass the tipping point from novel to necessity and continue to make an impact. 

Brian Adler is Senior Director of Cloud Market Strategy at Flexera

Hot Topics

The Latest

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

Image
Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

Image
Broadcom

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...

Today, organizations are generating and processing more data than ever before. From training AI models to running complex analytics, massive datasets have become the backbone of innovation. However, as businesses embrace the cloud for its scalability and flexibility, a new challenge arises: managing the soaring costs of storing and processing this data ...