A new report from Azul, the only company 100% focused on Java, reveals that 83% of CIOs are overspending on cloud infrastructure and applications—by an average of 30% beyond their original budgets. Only 2% of surveyed CIOs reported staying under budget. These insights come from The CIO Cloud Trends Survey & Report which polled 300 CIOs across the U.S.

Despite the financial challenges, 80% of CIOs say they still see cost savings from their cloud investments. This seeming contradiction underscores the cloud’s dual nature: delivering value and efficiency, while introducing new layers of financial complexity.

“High-performance Java platforms give CIOs a powerful lever to optimize cloud costs, delivering peak application performance while using fewer compute resources,” said Scott Sellers, co-founder and CEO at Azul. “When every cloud compute cycle impacts the bottom line, running Java more efficiently enables organizations to scale intelligently and cost-effectively.”

Leadership Concerned—but Still Supportive

The survey found that while 56% of CIOs report strong leadership support for current cloud spending—and even future increases—43% say their CEOs or boards have expressed concerns. Specifically, 27% require favorable market conditions before expanding cloud usage, 9% are unwilling to approve further spending, and 5% advocate for reductions.

Strategic Cost Management on the Rise

In response to rising expenses, CIOs are actively pursuing strategies to optimize cloud spending. Top tactics include:

• Modernizing and optimizing workloads for the cloud (52%)
• Using cloud provider cost management tools (51%)
• Leveraging enterprise discount programs (49%)
• Tracking and auditing cloud usage (45%)
• Adopting FinOps practices (32%)

Additionally, 30% are exploring high-performance Java platforms to reduce compute waste, and 29% are considering ARM-based architectures for improved price-performance.

Cloud Adoption Accelerates Despite Costs

Cloud migration remains a top priority for CIOs. Currently, 71% run over 60% of their workloads in the cloud, and 42% aim to reach 81–100% cloud workloads within five years. This momentum continues despite widespread budget overruns, signaling the strategic importance of cloud technologies in modern IT strategies.

AI/ML Leading the Charge

The primary drivers for cloud migration include:

• Data analytics and AI/ML capabilities (42%)
• Cost efficiency (40%)
• Scalability and flexibility (39%)
• Employee productivity (32%)
• Business continuity and disaster recovery (25%)
• Larger organizations (1,000–5,000 employees) particularly value cost efficiency and workforce productivity.

Repatriation Remains Rare

Despite cost concerns, few CIOs are planning to shift workloads back on-premises. Only 22% expect to repatriate workloads in the coming year, and just 2% say their leadership is advocating for a broader return to on-prem environments.