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Cloud infrastructure spending projected to rise as organizations face internal process challenges.

August 20, 2025

Enterprise technology leaders confront challenges as users increasingly migrate workloads to public cloud services, which enhances service delivery. According to IDC, this shift is likely to increase expenditures on shared cloud infrastructure while on-premises (on-prem) spending remains limited. IT decision-makers must understand the operational impacts of this transition.

Infrastructure Service Delivery Challenges

Organizations often depend on outdated internal request systems, hampering the pace of application development. The reliance on multi-ticket systems leads to delays that can restrict revenue growth and productivity.

Addressing Legacy Infrastructure Costs

Utilizing multiple ticket workflows presents three main drawbacks:

  • Delays in product launches since compute, security, and network teams work in silos instead of collaboratively.
  • Increased regulatory risk due to poor tracking of changes, complicating audit processes.
  • High costs related to cloud data retrieval, where egress fees can outweigh expected savings.

Executives are questioning the inability of internal networks to achieve cloud-level efficiency at lower costs.

Transforming Infrastructure into Product Offerings

In response, many organizations are embracing a product-based framework for infrastructure management. This involves structuring services similarly to products with distinct metrics and change management protocols.

Standardizing services into bundles can simplify workflows. Properly tracking the lifecycle of infrastructure actions boosts accountability, allowing teams to keep detailed records of changes and compliance efforts.

Stateful Orchestration for Better Governance

Implementing stateful orchestration improves governance by maintaining comprehensive records of resources and changes across systems. This method meets executive oversight needs while supporting the required agility for efficient service delivery.

Lifecycle Manager for Realizing Product Infrastructure

Itential’s Lifecycle Manager serves as a key resource that integrates existing workflows with product infrastructure models. This framework allows for automated provisioning and compliance while utilizing current systems without extensive redesign.

Bottom-Line Benefits

  • Service delivery could improve by 30% to 50% by streamlining workflow requests.
  • Audit preparation time can see substantial reductions.
  • Cost savings in cloud expenses can occur when internal services match external solutions' usability.

The Lifecycle Manager provides IT leaders with improved clarity on how infrastructure investments correlate with business capabilities, ensuring a connection between engineering outputs and user needs.

Conclusion

Digital transformation necessitates that organizations provide experiences comparable to cloud services internally. By productizing infrastructure and utilizing effective orchestration practices, businesses can enhance agility and governance, remaining competitive in a changing environment.