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Surging AI Costs Are Eroding Business Efficiency: New CloudZero Report

What do 475 senior leaders across software, financial services, cybersecurity, and other industries all have in common? They have little to no idea whether their AI investments are paying off. CloudZero just released FinOps in the AI Era: A Critical Recalibration, a report assessing the state of cloud and AI spending. Culled from hundreds of responses from people directly accountable for cloud spending, the report shows that while FinOps maturity is accelerating, cloud efficiency is plummeting.

FinOps Maturity Has Never Been Higher. So Why Is Cloud Efficiency Plummeting?

Whoever thought we’d see the day when cloud cost management (CCM) seemed easy? CloudZero just released FinOps In The AI Era: A Critical Recalibration, an annual report on the state of cloud and AI costs. The report surfaced what looks like a paradox: FinOps maturity is accelerating, but organizational cloud efficiency is plummeting. 72% of organizations now have formal cloud cost management (CCM) programs. That’s nearly double what we saw in our last survey (39%).

The AI-nigma: FinOps Is Maturing - So Why Is Cloud Efficiency Falling?

Q: What do you call it when FinOps maturity surges but cloud efficiency plummets? A: An AI-nigma. I don’t claim to be a comedian. But I do claim to be Fred FinOps, so the paradoxical findings from CloudZero’s new report titled FinOps in the AI Era: A Critical Recalibration, created in partnership with B2B SaaS benchmarking firm Benchmarkit, had me scratching my head. The good news: These numbers tell a story of cloud cost maturity and control. But then there’s the bad news.
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From cloud costs to cloud value: The role of performance analytics in increasing ROI

Many cloud providers offer services that scale with usage. However, unanticipated overutilization of compute instances, serverless functions, or managed databases can quickly drive up costs. Managing these resources effectively is crucial for keeping cloud spending predictable.

Perspectives from the Edge: Data Sovereignty with KPMG

Data sovereignty isn’t a checkbox – it’s now a board-level priority. Data sovereignty is everywhere right now, but for many organisations, it still feels abstract. In this first episode of Perspectives from the Edge, Assad Noori, Head of Digital Infrastructure Advisory for the UK at KPMG, speaks with Pulsant's Wendy Shearer, about why sovereignty has become a board-level issue, how AI and hybrid infrastructure are reshaping long-held assumptions, and why decisions about where data lives, moves, and is accessed now carry far wider implications than most organisations expect.

Why my Azure bill keeps spiking (and how to fix it)

Noticed a sudden spike in your Azure bill? Unexpected Azure cost increases are often caused by hidden usage, overprovisioned resources, scaling changes, or limited cost visibility. In this video, we explain why Azure costs spike, how to identify Azure cost anomalies early, and what steps you can take to prevent budget surprises. Take control of your Azure spend with smarter, proactive cost management.

When ConfigMaps Hit Limits: Migrating to CRDs

Over the past few years, Kubex has evolved from a cloud optimization product into a Kubernetes-centric solution, shifting its focus from cost and waste visibility to fully automated resource optimization. As that evolution happened, one of the earliest design decisions we had made began to show its limits: how the product was configured.

Your Cloud Economics Pulse For February 2026

Welcome to February’s Cloud Economics Pulse, CloudZero’s monthly look at cloud spend as AI moves from experiment to expectation. Last month, we closed out 2025 with a settling: provider shares locked in, compute softened, and AI claimed more of the mix (big surprise there). January confirmed those patterns weren’t year-end hustle and bustle. They signify a new baseline. Also, the Big Three (AWS, GCP, Azure) barely moved. They’re as entrenched as can be.

Kubernetes Vs. OpenStack: How They Differ, How They Work Together, And When To Use Each

Kubernetes and OpenStack are not competitors. They operate at different layers of the stack and are often used together. OpenStack manages cloud infrastructure such as compute, storage, and networking. Kubernetes runs on top of that infrastructure to deploy, scale, and manage containerized applications. Teams often compare them as alternatives, but in practice, Kubernetes frequently runs on OpenStack.