Getting the best bang for your Cloud bucks: Reallocating cloud spend

Cloud costs

United Kingdom, Dec 19, 2025

How can CIOs and business leaders reallocate cloud spend to unlock greater financial, operational and environmental value?

 

Today's CIOs face increasing pressure to demonstrate a return on investment (ROI). 

According to the Logicalis 2025 CIO Report, 94% of CIOs now regularly report to the board on ROI. Coupled with rising cloud infrastructure costs and strategic blind spots that can lead to wasted investment, there's an active shift in how cloud spend is viewed.

But the board aren't the only one watching.

Customers and partners are demanding more transparency, particularly around sustainability. By 2027, 75% of customers will expect CO2 emissions data across the entire lifecycle of IT assets, from their initial development through to their disposal. These expectations mean decisions around cloud now carry both financial and environmental weight.

Right-Sizing for value and sustainability

One of the most effective ways to drive value is right-sizing, ensuring that cloud resources align with your business's actual usage needs. Over-provisioning results in wasted funds, while under-provisioning can negatively impact performance. It's a tricky balancing act, but getting it right not only saves money, it can also reduce your carbon emissions, helping you meet Net Zero targets.

Balancing the need for innovation with external pressures

Navigating the digital landscape is complex. CIOs are under internal pressure to accelerate innovation projects, particularly in AI. Externally, they face economic uncertainty, technological disruption, and ever-changing regulations. Global tariffs on IT imports, for example, can suddenly affect procurement plans, adding another layer of complexity to cloud strategy.

The key to balancing these pressures is to ensure every cloud investment is aligned with business goals and delivers measurable value.

FinOps: The framework for strategic cloud management

This is where FinOps comes in. FinOps is a mature methodology that empowers organisations to move from reactive cost management to proactive optimisation, aligning cloud spend with your business priorities.

  • Collaboration: Finance, technology, and business teams working together.
  • Ownership: Teams taking responsibility for their cloud usage and budgets.
  • Business Value: Focusing on outcomes, not just cost.
  • Central Control: Enabling best practice while maintaining accountability.
  • Accessible Data: Real-time visibility into cloud performance and spend.
  • Optimised Investment: Agile planning and continuous improvement.

These principles demand a cultural shift that breaks down silos and encourages shared accountability across departments.

But it isn't just about saving money. FinOps is focused on innovation, resilience and growth. With the proper framework in place, organisations can reallocate spend from underused resources to high-impact initiatives. Launching a new AI tool, improving ESG reporting, or accelerating product delivery, the budget saved from wasted resources is now funding improvements that can impact the business at every level.

From initial assessment to full-scale transformation, what does a FinOps journey look like? Our e-book, Maximising the Value of Cloud Investment, describes Logicalis' managed service model, the role of platforms such as IBM Apptio and Turbonomic, and the tangible benefits of embedding FinOps across the business.

 

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