Cloud cost savings: Top 10 questions answered

Q&A blog image

United Kingdom, Mar 10, 2026

Cloud cost optimisation is one of the most talked-about topics in IT today. 

 

Whether you're a CIO, IT architect, or procurement lead, understanding how to reduce cloud costs without compromising performance is essential.

In this Q&A-style blog, we answer 10 of the most common questions our Cloud team get asked when working with our customers:

1. Why are cloud costs rising so fast?

Organisations are adopting cloud services at a rapid pace, without proper strategic oversight. As a result, cloud infrastructure is expected to account for 83% of total compute and storage spend by 2029, with a 99.3% year-on-year increase in Q4 2024 alone.

2. What are the biggest causes of wasted cloud spend?

In multi-cloud environments, wasted cloud spend often stems from a lack of visibility and control. Several common pitfalls contribute to unnecessary costs:

  • Abandoned services that are still incurring costs and going unnoticed
  • Cloud services that are either over- or under-provisioned
  • Overusing pay-as-you-go models
  • Over-investing in reserved instances
  • Underutilising cloud marketplaces that offer flexible procurement models
  • Lacking the time, tools, or expertise to address inefficiencies, even when they're flagged

3. How much can I save with reserved instances?

You can save up to 75% on reserved instances—but only if they're sized correctly! An AURI (All Upfront Reserved Instance) payment model may sound like a steal on paper, but if you're not going to end up using all the reserved instances, then you're just wasting money.

A PURI (Partial Upfront Reserved Instance) or NURI (No Upfront Reserved Instance) may be the better payment model for trialling a new service, depending on the service.

4. What is FinOps, and how can it help me?

FinOps, or Financial Operations, is primarily a framework designed to help organisations manage their cloud costs more strategically. By encouraging collaboration between IT, Finance, Procurement, and Business teams, FinOps ensures your cloud spend delivers measurable value.

If your organisation is facing challenges like:

  • Rising cloud costs with little visibility into where the money's going
  • Difficulty allocating spend across departments or projects
  • Pressure to demonstrate ROI and sustainability impact
  • A need to support innovation (e.g. AI) without blowing the budget
  • Managing multi-cloud environments with inconsistent cost controls

FinOps can help by:

  • Giving teams ownership of their cloud usage and budgets
  • Making cost a key performance metric from the start of development
  • Supporting faster product delivery while maintaining security and scalability
  • Creating a shared language and framework for tracking success

Whether you're a CIO, IT architect, or budget holder, FinOps provides the tools and mindset to turn cloud spend into a strategic advantage.

5. What are the key principles of FinOps?

The FinOps Framework centres around six key principles:

  1. Collaboration
  2. Ownership
  3. Business Value
  4. Central Control
  5. Accessible Data
  6. Optimised Investment

These principles form the foundation of a FinOps culture, empowering teams, improving accountability, and ensuring every pound spent on cloud contributes to overall business value.

6. What tools support cloud cost optimisation?

Platforms from IBM, such as Apptio, Turbonomic, and Cloudability, provide real-time visibility, forecasting, and automated optimisation. These tools help teams manage cloud spend without sacrificing performance.

7. How can I reallocate cloud spend to drive more value?

Being smarter with your cloud management and strategically leveraging procurement models can deliver significant cost savings. The business can redirect these funds to support other initiatives or projects that have a holistic impact, such as improving performance, fostering innovation, or advancing sustainability goals.

8. Can FinOps have an impact on sustainability goals?

The short answer is, yes! Making sure your cloud services are right-sized reduces the emissions they produce.

Cloud infrastructure is a major contributor to corporate emissions, and by 2027, 75% of customers will expect CO2 emissions data across the full lifecycle of IT assets. With the pressure to demonstrate responsible usage, FinOps is a great way to meet your sustainability goals without compromising performance or agility.

9. Can FinOps support innovation and AI adoption?

Just like FinOps can support sustainability goals, FinOps can also help your business adopt AI.

Right-sizing your cloud resources through FinOps ensures they're scalable to support AI workloads, and aligning your cloud spend with innovation goals enables organisations to make investment decisions based on value rather than costs.

10. What's the best way to start with FinOps?

Getting started with FinOps doesn't require a massive time sink or an overhaul of your cloud strategy. Logicalis recommend a structured approach that helps organisations of any size begin their FinOps journey with confidence:

  1. Align: Begin with a 30-day Proof of Value assessment to identify where money is being wasted and redirect it to achieve value quickly.
  2. Transform: Implement FinOps tools and migrate workloads while engaging with Logicalis' service experts to embed best practices.
  3. Scale: Use the insights and recommendations from the FinOps toolset to optimise your cloud usage and drive continuous innovation.

If you're looking to reduce cloud costs, improve sustainability, and accelerate innovation, FinOps is the way forward. Download our e-Book: Maximising the value of Cloud Investment. Tap into the true potential of your cloud investment for your business.

 

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