Cherry Servers CEO Identifies Five Warning Signs of Excessive Cloud Spend Amid Growing Industry Shift
Flexera report shows 84 percent of companies struggle with cloud cost management as firms revisit on-premises vs cloud strategies
Vilnius, Lithuania, July 04, 2025 (GLOBE NEWSWIRE) -- As more businesses evaluate the long-term financial impact of cloud adoption, Vaidas Rutkauskas, the CEO of cloud infrastructure provider Cherry Servers, is raising awareness around five key indicators that suggest companies may be overspending on their cloud infrastructure. Drawing on recent data from Flexera’s 2024 State of the Cloud report, the CEO encourages enterprises to reassess their server cost management practices and explore viable cloud alternatives.
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According to the report, 84 percent of organizations have difficulty managing cloud spend, with more than 27 percent of their cloud budget categorized as waste. These figures highlight the growing need for improved transparency and efficiency in how companies allocate resources across their digital infrastructure.
“There is a significant disconnect between expected savings and actual outcomes,” the CEO said. “When businesses overlook hidden expenses such as underutilized resources, data transfer fees, and long-term storage, they risk turning their cloud strategy into a major cost center.”
The industry is also seeing a noticeable increase in cloud repatriation, the process of moving workloads fully or partly back to private cloud or on-premises infrastructure, as enterprises seek to gain control over rising server costs. This shift reflects a deeper examination of private cloud benefits and advantages, particularly for organizations with strict compliance requirements or performance needs.
Cherry Servers advises companies to watch for early signals of inefficiency, such as unpredictable billing, lack of usage visibility, and growing reliance on services that offer little return. By proactively tracking and analyzing these patterns, firms can reduce waste and better align their infrastructure with operational demands.
- Unpredictable billing: Fluctuating monthly charges complicate budgeting and lead to unplanned expenses.
- Lack of usage visibility: Difficulty tracking how cloud resources are used, resulting in unclear resource allocation.
- Underutilized resources: Cloud resources that aren't fully utilized, adding unnecessary costs.
- Data transfer fees: High charges for data movement into and out of cloud environments.
- Growing reliance on low-value services: Increased spending on services that deliver minimal business benefits.
“Companies must begin evaluating whether their workloads truly belong in the public cloud or if dedicated environments or hybrid cloud offer better cost and performance outcomes,” the CEO added. “Understanding the trade-offs in the on-premises vs cloud conversation is essential.”
As the cloud landscape evolves, Cherry Servers supports a balanced approach with private cloud infrastructure, combining cloud automation without needing to maintain on-premises servers. This strategy aims to maximize flexibility while reducing long-term costs and risk.
Kadi Arula Cherry Servers marketing@cherryservers.com
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