Why Cloud Efficiency is Driving More IT Spending (Not Less)
InformationWeek, Thursday, August 21st, 2025
A 19th-century principle of economics explains why cloud cost optimization increases rather than decreases total IT spending, offering strategic approaches for value maximization.
Cloud bills that consistently exceed budget forecasts have become the new normal for enterprise technology leaders. Despite aggressive cost optimization efforts, 83% of organizations are spending more on cloud services than anticipated -- with the average overspend reaching a staggering 30%. This persistent pattern isn't a failure of management or forecasting. It's a manifestation of a 160-year-old economic principle that perfectly explains our modern cloud challenge.