Cloud Trends Shaping 2023  Trend 1. Cloud Cost Optimization 

25 Jul, 2023
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Cloud computing has become the backbone of digital transformation. Cloud enables organizations to scale operations, improve efficiency and drive innovation. And now that we are halfway through 2023, the technology just keeps evolving, bringing forth 5 key trends that will continue to shape the digital landscape.

Trend 1 is about maximizing efficiency and cost savings in cloud operations through cloud cost optimization. It emphasizes the importance of using cloud cost management tools and analytics to understand usage patterns, identify areas of overspending, optimize resource allocation, and build a FinOps culture.

The article highlights the misconception surrounding the cloud’s automatic cost reduction and addresses challenges arising from ad hoc implementations and lack of in-house knowledge that can lead to unexpected cloud expenses. As companies increasingly rely on cloud services in a tight economy, managing cloud expenses becomes a top concern, making this trend crucial for cloud cost optimization strategies.


Trend 1: Cloud Cost Optimization 

"Maximizing Efficiency and Savings "  

The idea that the cloud will magically lower your tech costs is a myth that most companies have debunked by now. But just because it can’t magically happen doesn’t mean it can’t happen at all. After all, cost-efficiency is often mentioned as a cloud benefit. Then how is it possible that a whopping 45% of companies report that their cloud expenses are (slightly or much) higher than anticipated (1)? 

First, after migrating essential tasks, many companies are now moving their tier 2 and 3 (non-mission-critical) workloads to the public cloud (2). And the more you run in the cloud, the higher the cost. So far, it all makes sense. However, if cloud spend rises disproportionately, you’re probably missing the insights, tools, processes, or policies to prevent costs from skyrocketing. For instance, research (3) shows that only one in six companies understands ‘cloud unit costs’ – a crucial FinOps metric describing the relationship between cloud consumption and business value.  

Second, many cloud implementations have been ad hoc and poorly implemented, partly because of the pressure companies experienced during the pandemic. The result is a messy setup, resulting in higher costs than intended.  

Finally, having the right in-house knowledge is crucial to making smart, informed choices. And that, we will read later on, is something many companies unfortunately lack.

Where previously companies ranked security as their primary cloud challenge, now managing cloud expenses concerns them the most (1). This shift comes as no surprise as they increasingly rely on cloud services in a tight economy. But how are we going to turn the tide?   

To maximize efficiency and realize significant cost savings in cloud operations, we expect companies to increasingly use cloud cost management tools and analytics to better understand their usage patterns, identify areas of overspending, optimize resource allocation, and invest in building a FinOps culture.  


Are you ready to lower your cloud costs? Ways to do so include:  

  • Refine your Cloud Journey to eliminate redundant, overbuilt, or wrongly architectured services
  • Optimize the use of technology with some clever tips and tricks from pros like Michiel van Oudheusden
  • Maximize licensing benefits with your cloud reseller 
  • Take a more comprehensive approach to cost management and implement FinOps
  • Contact us for a Microsoft Azure Cost Assessment. Get ready for a fast ROI — we’re known to reduce your monthly spending by 20%! 


Discover all other insights and trends shaping the cloud landscape in 2023 and beyond.



  2. Microsoft. (2022). Cloud Migration and Modernization: Trends for 2023. Global Research Report. 
  3. McKinsey Digital. (2023). The FinOps way: How to avoid the pitfalls to realizing cloud’s value. 

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