This Capgemini article examines the paradox of cloud consumption models: while pay-as-you-go delivers speed and flexibility, it also brings new challenges for cost control and governance. It highlights how leaders can balance innovation with discipline as cloud spending accelerates. Connect with Wolk 9 IT Services to learn strategies for managing speed and spend in your cloud journey.
What is the on-demand tech paradox?
The on-demand tech paradox refers to the struggle organizations face in leveraging on-demand technologies for agility and innovation while managing rising costs and governance challenges. A significant 82% of executives report escalating expenses in these areas, with many indicating that decentralized tech purchases create inefficiencies and risks.
How can organizations optimize their on-demand tech investments?
Organizations can optimize their on-demand tech investments by adopting a cloud-smart strategy aligned with business outcomes, engineering cost-aware architectures, expanding FinOps to cover all relevant technologies, and automating cost optimization through AI-driven tools. This holistic approach can help improve ROI while maintaining innovation.
What role does FinOps play in managing on-demand technology costs?
FinOps is crucial for managing costs related to on-demand technologies. While 76% of organizations are building FinOps teams, only 2% currently cover cloud, SaaS, and Gen AI comprehensively. Expanding the scope of FinOps to include these technologies can enhance strategic capabilities and promote better governance across functions.
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