Daily Intelligence Brief: Capgemini report addresses On-Demand technology cost challenges and budget management - September 10, 2025
A recent report from Capgemini Research Institute identifies challenges faced by organizations in managing costs associated with On-Demand technologies. These include public cloud services, Software-as-a-Service (SaaS), and Generative AI (GenAI). Despite the recognition of their importance for enhancing organizational agility, rising costs and operational complexities are impacting financial management.
The report notes that about 80% of organizations view these technologies as essential for growth. However, many experience budget overruns, with three-quarters exceeding their public cloud budgets by an average of 10%. Overspending in GenAI reaches 68%, while 52% report excess in SaaS spending, primarily due to poor cost visibility and resource underutilization.
Karine Brunet, CEO of Cloud Infrastructure Services at Capgemini, highlighted the need for better transparency and expense control as costs are projected to double. Organizations that have adopted On-Demand technologies further cite benefits such as cost savings and faster innovation, while less mature users face challenges including shadow IT and cybersecurity concerns. Implementing Financial Operations (FinOps) frameworks is deemed essential, especially as only 37% of organizations evaluate their cloud cost management tools effectively.
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