Hybrid cloud adoption climbs, but cost visibility still lacking

New research has indicated that hybrid cloud adoption has reached 68% among organisations in the UK and Ireland, but many remain unable to track cloud costs effectively and achieve full project results.

A survey conducted by Ekco of more than 1,000 IT decision-makers across the UK and Ireland found that 54% of IT leaders lack complete visibility over their cloud expenditure. This lack of oversight is making it impossible for a majority of organisations to properly measure their return on investment (ROI) from cloud-based solutions.

The report demonstrates that while the adoption of hybrid cloud—a blend of public and private cloud resources—has grown by 10 percentage points from 2022, just one-third of cloud projects are delivering on every objective set by organisations. The gap between partially achieving goals and complete success is evident, presenting a challenge for enterprises looking to maximise value from their investments in cloud technology.

Legacy infrastructure remains a significant hindrance in the modernisation efforts of many businesses. According to the survey, 71% of organisations stated that outdated on-premise technology is restricting their ability to innovate. Among those with a high reliance on legacy systems, 70% believe that transitioning to cloud-based solutions could help reduce costs, but almost half (46%) identified a lack of prioritisation from management as a major barrier to migration.

James Young, Head of Technical Solution Architecture at Ekco, commented on the survey results:

Organisations are making substantial cloud investments, but without proper cost visibility and optimisation, they're essentially flying blind. The jump to 68% hybrid adoption shows businesses want more control and governance, but that comes with complexity – a challenge that lends itself to a 'FinOps' approach, bringing together internal engineering, finance and business teams to ensure smarter, and more accountable cloud spending.

The growing complexity involved in managing cloud services appears to be driving organisations to seek more external expertise. The research noted that managed service provider (MSP) involvement in cloud projects has grown to 40% from 30% year-on-year. Engagement with MSPs is associated with improved project outcomes: projects with MSP support are 6.6% more likely to achieve all objectives and 8.3% more likely to stay within their defined scope and timeline, according to the survey data.

The cultural impact of cloud adoption is also evident in the findings. A large majority, 82%, reported that efforts to modernise their cloud infrastructure have resulted in a more agile organisational culture. This suggests that the benefits of migration go beyond technical changes and contribute to broader business transformation.

While only one third of surveyed organisations say their cloud projects meet all set objectives, interest in pursuing cloud adoption remains high, with 98% of respondents considering further moves to the cloud. The report indicates that, as cloud adoption becomes more common, the focus for organisations must move from simply implementing solutions to optimising and governing those solutions more effectively.

The Ekco survey report highlights the need for better integration of finance, engineering, and business teams to address the so-called 'FinOps' challenge. With most firms lacking full comprehension of their cloud outlay, questions remain over how to achieve more measurable ROI and ensure investments produce their intended benefits.

As organisations continue to increase their cloud capacity and modernise their infrastructure, the research points to a need for sharper oversight on financial management, prioritisation of migration from outdated systems, and clear governance structures that account for both technological and organisational requirements.