Enterprise cloud spending is spiraling out of control, with over half of organizations estimating that more than 40% of their cloud budget is wasted on preventable mistakes and inefficient processes.
And the accelerating growth in AI adoption isn’t helping. Cloud networking is often an overlooked area, and the growing demands of AI-driven data movement are compounding the challenge. Meanwhile, the rise of agentic AI could increase traffic exponentially—and make it far less predictable.
Unexpected cloud costs
More than half of all enterprise workloads are now running in public clouds, and cloud spending is projected to increase by 28% this year, according to Flexera’s state of the cloud report, which was released in late March. The company’s survey of more than 700 cloud decision-makers found that 40% of enterprises spend more than $12 million per year on public cloud, up from 36% last year.