Flexera released its 2026 State of the Cloud Report, highlighting the evolution of FinOps as organizations move from focusing solely on cost control to driving measurable business value. Although managing cloud spend remains a major challenge for 85% of organizations, more are adopting advanced FinOps practices, with 63% having dedicated FinOps teams and 64% reporting tangible value delivered to business units.
This elevated level of maturity reflects stronger governance and centralization, with 71% of organizations now operating a Cloud Center of Excellence (CCOE), together with greater involvement from FinOps, business units and software asset management (SAM) teams.
Alongside this shift, the report shows cloud-based AI workloads are surging, causing an increase in wasted cloud spend (29%) for the first time in five years. AI has quickly moved from experimentation to operation, with 81% of respondents stating they are using generative AI, compared to 72% last year and 47% in 2024.
In addition, organizations are now focused on how to deploy AI securely and reliably at scale. More than half (53%) of cloud leaders cite security and compliance as their top challenge for cloud-based AI initiatives, followed closely by data quality for AI model training (40%). With these challenges, increasing wasted spend, and the rising stakes of AI oversight top of mind, it’s not surprising that 47% of large enterprises are establishing dedicated AI governance teams or leaders.
“Cloud is maturing and visibility across technology is increasing,” said Brian Shannon, Chief Technology Officer, Flexera. “We’ve moved beyond treating the cloud as a cost-cutting exercise and now see it as the essential foundation for growth and the engine that allows us to turn ideas into global products. That shift requires bringing FinOps, IT asset management and governance together. As AI is reshaping cloud economics and risk, having centralized oversight is more critical than ever.”
Based on a global survey of more than 750 cloud decision-makers and users, the 15th annual report finds that as cloud environments grow more complex and AI adoption moves from experimentation to scale, organizations can no longer rely on ad hoc governance or cost‑only metrics. The report shows that cloud success in 2026 hinges on disciplined oversight, value measurement and proactive AI governance. These are the capabilities that separate mature cloud organizations from those struggling to control cost, risk and complexity.
Additional key findings include:
- Hybrid and multi‑cloud environments drive cost and governance complexity. 73% of organizations operating hybrid environments, while multi‑cloud adoption continues to rise—often driven by mergers, SaaS sprawl and decentralized teams rather than deliberate strategy.
- Enterprise cloud spend continues to climb. More than three‑quarters (76%) of large enterprises now spend over $5 million monthly on cloud services. The upward trend in public cloud spending continues and is closely linked to company size.
- Generative AI adoption accelerates into production. Nearly half (45%) surveyed report using it extensively, up from 36% in 2025, highlighting how quickly AI has moved from experimentation to operational use.
- Cloud spend remains concentrated across leading providers. For public cloud provider usage, AWS (83%) was slightly ahead of Azure (79%) for active enterprise workloads; Google Cloud Platform remains a distant third.
- Managed Service Providers (MSPs) evolve as AI reshapes service demand. MSPs remain critical for managing complexity, with nearly half planning to offer AI consulting and SaaS management services and two‑thirds adopting AI for cybersecurity, as customers retain greater ownership of governance and cost accountability.
For more information on the Flexera 2026 State of the Cloud report, visit the website here.
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