Capgemini's article "The on-demand tech paradox: Balancing speed and spend" explores the shift from large, upfront IT investments to flexible, consumption-based models. Cloud economics are reshaping how organizations budget, innovate, and compete. This story examines the opportunities of pay-as-you-go IT — and the challenges of balancing agility with cost control in an era where cloud is no longer optional, but essential.
What is the on-demand tech paradox?
The on-demand tech paradox refers to the challenges organizations encounter as they scale on-demand technologies to enhance agility and competitiveness. While 77% of executives believe that cloud scalability is crucial for business growth, 82% report rising expenses associated with these technologies. Issues such as decentralized spending and governance gaps can threaten profitability and performance.
How can organizations optimize their on-demand tech investments?
To optimize on-demand tech investments, organizations should adopt a cloud-smart strategy aligned with business outcomes, engineer cost-aware architectures, and expand FinOps to include all relevant technologies. Additionally, automating cost optimization with AI-driven tools and integrating sustainability into financial operations can enhance long-term efficiency.
What role does FinOps play in managing on-demand technology costs?
FinOps plays a critical role in managing costs and improving ROI for organizations leveraging on-demand technologies. While 76% of organizations have or plan to establish FinOps teams, only 2% currently cover cloud, SaaS, and Gen AI comprehensively. Expanding the scope of FinOps to include these technologies can transform it into a strategic capability that promotes cross-functional accountability and effective governance.
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