The State of Cloud Cost, a captivating tale,
Unveiling the trends, the wins, and the trail.
The cloud economy is experiencing a remarkable surge, as businesses and individuals increasingly recognize the value and flexibility offered by cloud computing solutions. With its ability to provide scalable resources, enhanced collaboration, and cost savings, the cloud market has become a key driver of digital transformation.
Worldwide end-user spending on public cloud services is forecast to total $723.4 billion in 2025, up from $595.7 billion in 2024, according to the latest forecast from Gartner, Inc.
*Source: Gartner & Grand View Research
AWS generated $27.5 billion in total revenue during the third quarter of 2024. This means Amazon’s cloud business is now running at a record $110 billion run rate.
Microsoft’s Intelligent Cloud group reported revenue of $24.1 billion in the quarter, up from approximately $20 billion year over year. Azure revenue is included in the company’s Intelligent Cloud business.
Google Cloud generated total revenue of $11.4 billion during the quarter. This means Alphabet’s popular cloud business is now at a $45.6 billion annual run rate.
These figures suggest that all three platforms are experiencing steady expansion in their respective markets, reflecting the increasing demand for cloud-based services and highlighting the intense competition among these industry leaders.
Amazon Web Services (AWS) had the largest share (31%) of the cloud market, followed by Microsoft Azure (20%) and Google Cloud (11%).
Among the top customers, GCP counts Spotify, Twitter, and Target; AWS boasts Netflix, Airbnb, and NASA; and Azure attracts the likes of Intel, Adobe, and Verizon, exemplifying the broad spectrum of organizations harnessing these leading cloud services for their technological needs.
*Source: CRN
In 2024, the cloud cost management landscape witnessed a remarkable surge as cloud providers such as AWS, GCP, and Azure introduced an impressive array of new services. Simultaneously, a wave of innovative startups emerged to cater to the growing demand in this space like Microsoft Azure has introduced new app services, compute services, and data and networking services. Google Cloud has also launched new service extensions for Cloud Load Balancers and unveiled new products such as generative AI, cloud infrastructure services, and security features.
Looking ahead to 2025, the momentum shows no signs of slowing down. Among the notable services and startups that has emerged till now are as follows:
With a recent survey of major industries and organizations, it was discovered that the demand for FinOps professionals has multiplied by a staggering 300% in the last two years alone. This surge in demand signifies the increasing recognition of the crucial role played by FinOps in optimizing financial operations.
Today, there are countless FinOps positions available across various sectors, ranging from startups to multinational corporations. The numbers speak volumes: job boards feature an impressive average of 500 new FinOps job postings each month, a significant increase from the mere handful just a few years ago.
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*Source: FinOps Foundation
The future of cloud computing 2025 promises extraordinary shifts as a result of technical breakthroughs and changing business demands.
This section examines 8 significant cloud computing trends and forecasts that will impact the cloud computing future, ranging from sustainability initiatives to the incorporation of cutting-edge technology such as AI and quantum computing. Read along!
Increased adoption of multi-cloud strategies
This approach involves using services from multiple cloud providers, allowing businesses to blend resources from private clouds (cloud infrastructure dedicated to a single organisation) and public clouds (cloud services provided over the internet). By leveraging a mix of these environments, companies can tailor their infrastructure to better fit their specific needs.
Growth of serverless computing
Serverless computing is gaining popularity because it removes the need for developers to handle server infrastructure. With this model, cloud providers handle server provisioning, maintenance, and scaling. This allows you to focus solely on writing and deploying your code.
Expansion of edge computing
Edge computing is developing as a major topic in the technology industry. It refers to processing data closer to its source, such as local servers or Internet of Things (IoT) devices, rather than depending only on centralized data centres. This approach brings data processing capabilities nearer to users and devices, which leads to faster insights and improved application performance.
Advancements in cloud security
Cloud security is evolving rapidly, with significant advancements driven by technology. One of the most significant advancements is the use of Artificial Intelligence (AI) and Machine Learning (ML) in security measures. These technologies enable systems to analyse large volumes of data to detect potential threats in real time.
Rise of AI and Machine Learning in the cloud
With advances in AI and ML, you may expect cloud trends like self-automation (where computers complete tasks automatically), personalised cloud experiences, and improved data security. Major cloud service providers such as Google and Amazon are significantly investing in AI and machine learning technology.
Enhanced cloud-native development
Cloud-native development is a significant trend that focuses on building and running applications specifically designed for cloud environments. This approach utilizes modern technologies and practices, such as containers, microservices and dynamic orchestration. By adopting cloud-native practices, you can develop applications that are scalable, flexible, and resilient.
Greater focus on compliance and data privacy
Governments worldwide are enforcing strict data governance and privacy regulations, such as the California Consumer Privacy Act (CCPA), Health Insurance Portability and Accountability Act (HIPAA), and General Data Protection Regulation (GDPR).
Evolution of cloud cost management tools
As the number of users adopting cloud services increases, managing costs has become a crucial concern for businesses. To address this, cloud providers are developing advanced cost management tools that help you monitor and optimise spending.
*Source: Tata Communications
This carefully curated collection highlights renowned events like AWS Re:invent, KubeCon, GCP Next, FinOps X, and VMware Explore, where industry experts, thought leaders, and cloud enthusiasts converge to share cutting-edge insights, best practices, and innovative solutions.
Join these conferences to stay at the forefront of cloud technology, gain invaluable knowledge, network with industry peers, and unlock the secrets to mastering the cloud for optimal cost efficiency and management success.
* Please note that these dates & locations are subject to change. For the most up-to-date information, please visit the websites of the respective conferences.
