Episode 28: Cloud conclusion and recap
- Embedded IT
- Mar 4, 2025
- 2 min read
Updated: Jan 16
Cloud computing continues to shape how organisations buy, manage, and scale their technology. This piece brings together the essential concepts that matter most for anyone involved in technology procurement, from understanding cloud service layers to weighing commercial risks and opportunities.
This article is part of our Cloud Computing series, exploring the technology, commercial models, and risks organisations need to understand when adopting cloud services.
Understanding IaaS, PaaS, and SaaS
A clear understanding of IaaS, PaaS, and SaaS is crucial for effective procurement. Each layer represents a different level of responsibility and control. The choice between them influences how services are managed, how secure they are, and what obligations fall on the buyer rather than the provider. Knowing the difference prevents costly assumptions later on.
The role of virtualisation in cloud computing
Virtualisation sits at the heart of modern cloud platforms. By creating virtual servers and components on top of large physical machines, providers can offer scalable and flexible services. This foundation is what enables organisations to run workloads efficiently without owning the underlying hardware.
Commercial benefits and risks for IT procurement
Cloud’s biggest commercial advantage is its consumption-based pricing model. Organisations can pay only for what they need, ramping up or down as required. However, this model also introduces the risk of overspending if services are left running unnecessarily or visibility is poor.
Equally important are the risks tied to operating in someone else's data centre. Buyers must trust the provider to secure their data, uphold privacy requirements, and maintain compliance with relevant regulations. These factors should be considered early in procurement rather than retrofitted after adoption.
Introducing FinOps as a new discipline
FinOps is emerging as a valuable discipline for organisations navigating variable cloud costs. It brings IT, finance, and procurement together to improve visibility, strengthen accountability, and optimise spending. While still relatively new, it is becoming increasingly relevant as cloud pricing models grow more complex.
Market growth and emerging considerations
Global cloud revenues continue to grow at roughly 20% year on year. With rising demand and energy-intensive data centres, supply risks may become more prominent over time.
Environmental impact is an additional factor for procurement teams to monitor, as major providers invest in alternative power sources to support future capacity.
Final reflections
Cloud computing remains a fast-moving and fascinating space, with plenty more to explore in areas such as AI, quantum computing, or the legal and commercial structures behind technology contracts. As the market evolves, procurement teams will need to stay informed and agile to make effective decisions.
For organisations looking to improve their approach to cloud procurement, get in touch.
