Azul, a provider of Java platforms tailored for modern cloud enterprises, has conducted a survey revealing significant insights into cloud spending among CIOs. The findings indicate that a staggering 83% of CIOs are overspending on cloud infrastructure and applications, with the average overspend estimated at 30%. Contrarily, a mere 2% of respondents report staying under budget. This situation creates a paradox: while many CIOs face financial challenges, 80% believe that cloud adoption ultimately leads to cost savings, underscoring the complexities of strategic cloud management.

Cost management has become an urgent topic of discussion, especially in the boardroom. The survey indicates that nearly half of CIOs have heard concerns from their CEO or board regarding cloud expenditures. As a result, some executives are pausing expansion plans until economic conditions improve, and a small fraction is calling for reduced cloud spending.

Despite these financial concerns, cloud migration is still on the rise. Over 70% of CIOs report that more than 60% of their workloads are already in the cloud, with nearly half aiming for 81-100% cloud adoption within the next five years. Driving this migration are factors like data analytics, AI capabilities, increased flexibility, and improved productivity.

To combat rising costs, CIOs are implementing various optimization strategies. These include reengineering application workloads, utilizing native cloud cost management tools, adopting FinOps practices, and exploring alternative compute architectures, such as ARM. Notably, 30% are considering high-performance Java platforms to save costs by reducing the computational resources needed for the same performance.

While there’s some discussion of returning workloads to on-premises environments, only 22% of CIOs expect to take that step in the next year, and merely 2% have executive support for this shift. Azul’s CEO, Scott Sellers, highlights the broader challenge of achieving a balance between innovation and financial discipline. He stresses that the key to maintaining sustainable digital transformation lies not in retreating from cloud investments but in optimizing cloud infrastructures.

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