Cloud computing has an ROI problem
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Cloud computing has an ROI problem
"Cloud computing promised agility, scalability, and innovation, but many organizations are finding their ROI underwhelming. According to Datacom's 2025 Cloud and Infrastructure Report, less than half of Australian businesses believe cloud computing has met their expectations. High costs, complex multicloud setups, skill shortages, and difficulties managing cloud financial practices are preventing full benefits. While cloud enables AI, automation, and operational efficiency, many enterprises face unexpectedly high total costs of ownership."
"At the heart of this issue is the widening gap between the promises of cloud computing and the financial and operational realities. The fundamental problem isn't necessarily the technology itself but its true cost versus the value delivered. Business leaders are reevaluating the vision of cloud computing as a cost-saving measure and rethinking their strategies as they examine the numbers."
Less than half of Australian businesses believe cloud computing has met expectations. High costs, complex multicloud setups, skill shortages, and weak cloud financial practices limit realization of benefits. Cloud provides agility, scalability, AI enablement, automation, and operational efficiency, but these advantages often come with unexpectedly high total cost of ownership. Some enterprises are migrating workloads back to private data centers. Usage-based pricing and unpredictable demand drive budget volatility. Deliberate architecture redesign, stronger financial oversight, and continuous optimization are required to unlock cloud potential and improve return on investment.
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