The Cloud ROI gap: Why half of organizations don't capture cloud value

Do you feel like your organization is spending too much on the cloud and not getting enough return? 

According to industry research, you’re not alone: one in two organizations don’t get the desired outcomes from cloud spend. And given over half of enterprises and SMB workloads currently run in the public cloud, that’s a significant value gap.

Normally, when there’s a nebulous return on investment (ROI), you’d assume people would spend less, not more. However, the data shows the exact opposite:

• 75% of cloud leaders are planning significant increases in cloud over the next two years (NTT Data)

• On average, organizations are planning to increase their cloud investment by 28% (Flexera)

A big driver of this is the need to deliver on AI initiatives, which inherently need to be built using cloud computing as a base. Half of CIOs and CTOs say the rise of AI and agentic AI has enhanced their need for investment in the cloud.

However, the cloud ROI gap remains. Right now, a lot of organizations are rushing to build larger, more complicated architectures on already shaky cloud foundations. The end result is going to be an even greater cloud and AI ROI disappointment than before.

The solution is addressing the underlying issue with your cloud ROI before unquestioningly spending more on it. If you’re not seeing enough return, it’s for this reason: 

“Your cloud talent is your cloud ROI.”

The cloud offers value, but it takes talent to unlock it

Cloud computing is a powerful tool, but most organizations don’t know how to extract value from it. According to Forrester research, only 8% of organizations qualify as highly cloud mature. The rest fail to leverage techniques that provide cloud value like automation, autoscaling, managed services, and more. 

This research shows when organizations reach high cloud maturity:

• 86% have used cloud to achieve their overall business goals

• 86% achieve a stronger security posture

• 84% have greater ability to attract, motivate, and retain talent

• 84% can roll out infrastructure in an agile way

• 82% have optimized cloud costs

• 81% have increased business collaboration and fewer silos

In short? The problem is not cloud technology itself, but the skilled execution.

Building the right talent to achieve cloud ROI

Nearly all business leaders are familiar with the popular “People, Process, Technology” framework for managing change in their organizations, also known as the “golden triangle” or “three-legged stool.” 

With cloud success, most organizations fail to prioritise the first area: their cloud talent. This undermines the remaining areas, since without the proper knowledge and skills, organizations don’t adopt the right cloud processes or use the technology in a way that delivers on business objectives. There is an assumption that cloud services create ROI by just using them, but research shows that without cloud maturity, this simply isn’t the case. 

If you picture cloud computing as a ship that your organization is sailing towards a desired destination, there are four areas where you need a skilled crew: the captains, the ship builders, the navigators, and the sailors. 

1. Leadership (The Captains)

Great cloud leadership is essential to achieving cloud ROI. They share what success looks like, provide clear guidance about the main objectives and goals needed to properly scope cloud projects, make sure there aren’t cloud skill gaps, and sufficiently empower teams to succeed. They also champion the Cloud Center of Excellence (CCoE) and build a continuous cloud learning culture.

The best cloud leadership comes from a place of knowledge, where leaders have taken the time to learn what the cloud can and can’t offer the business, and the structure, functions, and skills needed for success. This helps them guide people towards the ultimate goal.

2. Cloud architects (The builders)

How your cloud architect builds your initial solution largely determines your future cloud ROI: the costs, security, scalability, and more. They also help with overseeing cloud governance, security, and designing new solutions.

Cloud architects need to be skilled and knowledgeable enough to predict your current and future needs, so they can best design what you need to get you to your intended destination.

3. FinOps (The navigators)

These cloud financial operations specialists are your go-to for analyzing and tracking your cloud spend, identifying cost-saving opportunities, and allocating costs to specific teams, projects, or products. 

By knowing how to track unnecessary spend and achieve savings, FinOps can keep you in safe waters and avoid unexpected costs from sinking you.

4. Engineering teams (The sailors)

These are the people who are working with the cloud hands-on, using it to get your organization where it needs to go. They are performing the actions that create cost and are accountable for controlling it.

Because engineers actually steer cloud use, they can avoid creating cloud waste with skills and knowledge in cloud cost control and by working with FinOps.

When cloud is table stakes, strong skills are essential for cloud ROI

If you’re experiencing disappointing ROIs from your cloud investments, and especially if you’ve got AI projects in flight, look to improving your cloud talent. As a leader, you can build the foundation for better cloud outcomes by upskilling these areas of your workforce appropriately, which in turn empowers them to:

• Migrate and scale the use of cloud services with confidence.

• Operationalize new cloud and AI offerings to stay competitive.

• Maintain cost efficiency and avoid waste. 

• Transform your cloud investments into sustained, measurable ROI.

Build cloud readiness skills with Pluralsight

Give your teams immediate access to a vetted, hands-on cloud and AI curriculum that fits their workday, building the skills needed for optimization and an AI-first future. Learn more about how we can help.