What Is Cloud Computing?
Cloud computing is the delivery of computing resources, such as servers, storage, databases, networking, software, and analytics, over the internet. Instead of maintaining physical infrastructure, users access these services through cloud providers like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud.
There are three primary models of cloud computing:
- Infrastructure as a Service (IaaS): Provides virtualized computing resources over the internet. Users manage the operating systems and applications, while the provider manages the hardware.
- Platform as a Service (PaaS): Offers a framework for developers to build and deploy applications without managing underlying infrastructure.
- Software as a Service (SaaS): Delivers software applications over the internet on a subscription basis, with providers managing everything from infrastructure to the application itself.
This is part of a series of articles about FinOps
In this article we’ll cover the following cloud computing statistics:
- Market Size and Growth
- Cloud Adoption
- Cloud Service Delivery Models
- Cloud Spending and Cost Management
- Cloud Waste and Cost Optimization
- Cloud Provider Market Share
- Cloud Strategy Trends
- Cloud Security and Compliance
- Cloud in Specific Industries
- Cloud Energy and Environmental Impact
Key Cloud Computing Statistics
Market Size and Growth
Cloud computing continues to grow rapidly, with organizations investing heavily in cloud infrastructure and services. Here are the key figures that illustrate this market’s expansion:
- The global cloud computing market is expected to reach $1.614 trillion by 2030, up from $446.51 billion in 2022 (G2)
- Spending on cloud infrastructure services reached $270 billion in 2023 and hit $82 billion in Q4 2024, a 21% year-over-year increase (G2)
- In 2025, global spending on cloud services reached $1.3 trillion (G2)
- The Euroscape cloud index was valued at $8.4 trillion in 2024, representing publicly listed cloud companies across the U.S., Europe, and Israel (Accel)
Cloud Adoption
Cloud adoption has become nearly universal across enterprises, with organizations using a mix of public, private, and hybrid models.
- 94% of enterprise organizations are using cloud computing (G2)
- 89% of companies use a multicloud strategy, while 59% use multiple public clouds (G2)
- Over 60% of corporate data is now stored in the cloud (G2)
- 63% of companies have established a cloud center of excellence (CCOE) or central cloud team (Flexera)
- 75% of enterprises are focused on developing cloud-native applications (G2)
- 70% of organizations default to cloud-based services when adding new capabilities (G2)
Cloud Service Delivery Models
The demand for IaaS, PaaS, and SaaS continues to grow as businesses shift workloads and applications to the cloud.
- IaaS spending is projected to reach $180 billion in 2024 (G2)
- 82% of IT decision-makers use IaaS to host workloads (G2)
- SaaS dominated the industry in 2023, making up 45% of cloud revenue, and is expected to generate 40% of revenue in 2024 (G2)
- Companies use an average of 112 SaaS apps, with large enterprises using thousands (G2)
- More than 50% of organizations use DBaaS, containers, and data warehouse tools, while 44% use NoSQL, 41% use AI/ML services, and 34% use stream processing (G2)
Cloud Spending and Cost Management
With cloud budgets increasing across the board, managing spending is now a top priority for most organizations.
- 29% of IT budgets are dedicated to cloud services and infrastructure (G2)
- 65% of organizations increased their cloud budgets in 2024; 31% kept them steady (G2)
- 72% of companies spend over $1.2 million annually, while 36% exceed $12 million on cloud (G2)
- 33% of cloud users reported annual spending of over $12 million in 2025 (G2)
- Only 6% of companies report zero avoidable cloud spending (Flexera)
Cloud Waste and Cost Optimization
As cloud investments increase, so does cloud waste. Many organizations struggle with visibility, overprovisioning, and cost attribution, leading to significant inefficiencies.
- 32% of cloud budgets went to waste in 2022, up from 30% in 2021 (Flexera)
- 75% of companies reported an increase in cloud waste as their spending grew (StormForge)
- 54% of cloud waste stems from a lack of cost visibility (Anodot)
- 50% say complex pricing models make cost control harder (Anodot)
- 53% of enterprises say they haven’t seen substantial value from cloud investments yet (PwC)
- 49% of business leaders cite difficulty measuring ROI as a key barrier (PwC)
Cloud Provider Market Share
The cloud market remains led by a few dominant players, though others are gaining ground in specific regions and service areas.
- Databricks became the most valuable data cloud platform in 2025 with a $62B valuation (Databricks)
- 54% of users rely on three or more cloud storage providers (GoodFirms)
- Google Drive, Dropbox, OneDrive, and iCloud are the most used personal storage platforms (GoodFirms)
Cloud Strategy Trends
Hybrid and multicloud strategies are now the norm, offering organizations greater flexibility, risk management, and service diversity.
- 39% of organizations use hybrid cloud; 33% use multicloud strategies (Fortinet)
- 67% use public cloud; 55% still operate on-premises infrastructure; 45% use private cloud (O’Reilly)
- 80% of organizations use multiple public or private clouds (Virtana)
Cloud Security and Compliance
Security and compliance are top concerns, as data breaches and downtime become increasingly costly and complex to manage.
- 95% of companies are concerned about cloud security (Fortinet)
- Misconfiguration is the top threat at 68%, followed by unauthorized access (58%) (Fortinet)
- The average cost of a data breach rose to $4.88M in 2024; healthcare breaches exceed $10.9M (IBM)
- Average IT downtime costs $14,056 per minute; for large enterprises, over $23,000 per minute (BigPanda)
- A single hour of downtime can cost over $100,000; 40% of enterprises lost $1–$5M in one hour (Erwood Group)
Cloud in Specific Industries
Different industries are leveraging cloud computing at different rates, with some leading in adoption and investment.
- Banking, software, and retail are the top three spenders, expected to invest $190 billion in public cloud services in 2024 (G2)
- Healthcare cloud is growing rapidly, especially in the U.S., with $25.54 billion growth expected between 2020 and 2025 (G2)
- Retail and eCommerce have the highest cloud usage at 79%, followed by media and entertainment (73%) (G2)
- 81% of insurers use the cloud for claims management, with 25% using it exclusively (IBM)
- Over 30% of real estate leaders plan to invest in cloud services (G2)
Cloud Energy and Environmental Impact
Cloud migration isn’t just about efficiency, it also has environmental benefits, especially when compared to traditional on-premises infrastructure.
- Data centers consume about 1.5% of global electricity (IEA)
- They also account for 1% of energy-related CO₂ emissions (IEA)
- High ESG performers using cloud infrastructure had 4.7x higher operating margins (Accenture)
Related content: Read our guide to FinOps principles
Cloud Cost Management with Finout
Effective cloud cost management is essential for businesses to leverage the full potential of cloud computing without incurring unnecessary expenses. By understanding the benefits, challenges, and available tools for cloud cost management, organizations can adopt best practices and strategies to optimize their cloud spending.
Implementing dedicated cloud cost management solutions can provide the necessary insights and automation to control costs, improve efficiency, and align cloud investments with business objectives.
Learn more about Finout for cloud cost management