Core Insights - The rise of On-Demand technologies is reshaping business operations, but increasing costs, complexity, and governance gaps are jeopardizing returns [2][4][5] - Organizations are transitioning from capital-intensive IT investments to flexible, consumption-based models, with On-Demand tech expected to grow from 29% to 41% of IT budgets in the next year [3][4] - Despite the benefits of On-Demand technologies, many organizations struggle with cost management and achieving expected returns on investment [5][6] Cost and Complexity Challenges - 82% of executives report significant increases in costs associated with cloud, SaaS, and Gen AI, driven by inflation and digital infrastructure demands [6] - 76% of organizations exceeded their public cloud budgets by an average of 10%, with 68% overspending on Gen AI and 52% on SaaS [6] - Underutilized resources and decentralized procurement are major contributors to budget overruns [6] Governance and Management Issues - 60% of organizations utilize cloud cost management tools, but only 37% assess their effectiveness [7] - 76% of organizations have or plan to establish FinOps teams, yet most remain narrowly focused and operational [7] - Only 2% of organizations with a dedicated FinOps function cover cloud, SaaS, and Gen AI holistically [7] Sustainability Considerations - 53% of organizations acknowledge that suboptimal usage of On-Demand tech leads to excessive energy consumption and increased carbon emissions [8] - Only 36% have a strategy for integrating sustainability into FinOps, despite the potential for cost reduction and carbon footprint minimization [8] Research Methodology - The Capgemini Research Institute conducted a survey of 1,000 executives from global organizations with annual revenues of at least $1 billion, focusing on On-Demand technologies across 12 sectors and 14 countries [9]