Flexera’s 2025 State of the Cloud Report is serving up a fascinating snapshot of the current public cloud spending landscape, and it offers plenty of intriguing insights for IT pros—including those managing Windows environments. With over 750 public cloud customers surveyed, the report dives deep into how organizations are allocating their cloud dollars across the major providers: Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), Oracle Cloud Infrastructure (OCI), and IBM Cloud.
• Nearly all respondents are utilizing at least one cloud provider discount option, with the Microsoft Enterprise Agreement discount emerging as the most popular among them. This fact alone underscores the enduring strength of Microsoft’s approach to enterprise cloud economics.
• When breaking down usage by spending, AWS and Azure continue to jostle for position. AWS maintains a slight edge among small and medium-sized businesses (SMBs), while Azure appears to lead among larger enterprises—a clear indicator that the cloud spending nuances differ widely based on organization size.
• For organizations with monthly public cloud spends below $50,000, GCP stands out, suggesting that smaller, nimble operations might be finding significant value in the Google cloud ecosystem.
• On the high-end of the spectrum, some 33 percent of organizations are spending over $12 million annually on public cloud services, and an impressive 11 percent exceed $60 million. Such figures reveal that public cloud investment is not merely a cost center; it has evolved into a strategic imperative for many businesses.
These numbers not only reflect the growing adoption of public cloud services but also illustrate the strategic choices enterprises are making about their cloud vendors.
• AWS appears uniquely appealing to the SMB segment. This could be attributed to AWS’s extensive service catalog, competitive pricing, and long-standing market presence that resonates with smaller organizations seeking to optimize their operational agility and scalability.
• In contrast, enterprises seem to lean towards Microsoft Azure. The slightly higher draw for Azure among larger organizations may come from its seamless integration with existing Microsoft investments—both software (Windows Server, Office 365) and licensing contracts. For many Windows IT managers, Azure represents a natural extension of their current IT ecosystem.
One might ask: why is there such a divergence in provider preference? It likely comes down to a mix of historical ties, contract structures (like the pervasive Microsoft Enterprise Agreement), and the operational scale of these organizations. The clear takeaway is that context matters—what works well for an SMB might not serve an enterprise as effectively, especially when dealing with the intricacies of cloud cost optimization.
For Windows IT professionals, the implications are significant. With Microsoft’s broad portfolio and deep integration across Windows platforms and business applications, the discount not only reduces the cost of cloud services but also enhances the overall financial flexibility of the enterprise. It’s a strategy that highlights the importance of vendor ecosystems and long-term planning in IT budgeting.
Despite some organizations starting to repatriate workloads back to private data centers, only 21 percent of workloads have been repatriated. In other words, even as a few workloads see the light of day back on-premises, the scale of new cloud migrations and net-new cloud workloads far outweighs these withdrawals. This ongoing migration trend is a clear marker that cloud adoption has reached a critical mass.
IT leaders, especially those working with Windows-based infrastructures, must pay close attention to this shift. The continued expansion of cloud workloads implies a need for robust hybrid-cloud management strategies and heightened focus on security, cost management, and seamless integration between on-premises and cloud environments.
• A significant portion of large enterprises is turning to Azure, which means Windows-centric IT departments are likely to see increased usage of cloud-based Microsoft services. This promises not only smoother interoperability with their existing Windows ecosystem but also innovative ways to leverage cloud-based tools for enhanced performance and automation.
• The competitive edge of AWS among SMBs suggests that organizations of this size are not ignoring robust cloud solutions. For Windows users in smaller companies, it underscores the importance of choosing cloud solutions that align with both operational needs and budget restraints.
• GCP's prominence among low-to-moderate spenders illustrates that cost optimization is key. For IT professionals responsible for budget management on Windows workstations, containers, or enterprise applications, leveraging cloud provider discount strategies can be a game-changer.
• With over half of workloads already in the public cloud, hybrid IT environments are becoming the norm. This scenario demands robust solutions that allow seamless migration and integration. Windows professionals must ensure that security architectures and management policies are updated to accommodate this duality, keeping both cloud and on-premises data protected and compliant.
• North America dominates the survey with 63 percent of respondents, reinforcing the region’s leadership in cloud adoption.
• Europe’s 22 percent and Asia-Pacific’s 14 percent highlight the growing interest in public cloud in these regions, although they may face different regulatory landscapes and operational challenges.
For international enterprises and Windows IT professionals in multinational corporations, these regional nuances could influence strategic decisions when negotiating contracts or planning cloud architecture. A one-size-fits-all approach might no longer be viable, given the varied priorities and policies that govern cloud spending across different regions.
From a broader perspective:
• The ongoing influx of net-new cloud workloads indicates that investments in public cloud infrastructure will only grow stronger in the coming years.
• Cloud service providers will continue to refine their pricing models, service catalogs, and discount strategies to attract various segments, from nimble SMBs to sprawling global enterprises.
• For IT professionals managing mixed environments—especially those working predominantly with Windows—this signals a need to balance cloud-first strategies with the realities of on-premises legacy systems, ensuring compatibility and security throughout.
The report clearly accentuates that strategic cloud planning is not only about choosing a provider, but also how organizations leverage the ecosystem surrounding that provider. Whether it’s leveraging discount agreements or managing resource scaling across hybrid environments, every decision counts.
So, with cloud migration accelerating and workload diversity increasing, the question for many IT leaders isn’t just “Which cloud provider is best?” but rather, “How can I ensure my organization’s hybrid environment, including our trusted Windows infrastructure, is future-proofed in this rapidly evolving digital landscape?” This is a question that will undoubtedly continue to shape IT strategies around the globe.
Source: CRN AWS Vs. Azure Vs. GCP Vs. Oracle Vs. IBM Customer Spending Face-Off: Report
A Detailed Look at the Data
According to the report, the competition is fierce and nuanced:• Nearly all respondents are utilizing at least one cloud provider discount option, with the Microsoft Enterprise Agreement discount emerging as the most popular among them. This fact alone underscores the enduring strength of Microsoft’s approach to enterprise cloud economics.
• When breaking down usage by spending, AWS and Azure continue to jostle for position. AWS maintains a slight edge among small and medium-sized businesses (SMBs), while Azure appears to lead among larger enterprises—a clear indicator that the cloud spending nuances differ widely based on organization size.
• For organizations with monthly public cloud spends below $50,000, GCP stands out, suggesting that smaller, nimble operations might be finding significant value in the Google cloud ecosystem.
• On the high-end of the spectrum, some 33 percent of organizations are spending over $12 million annually on public cloud services, and an impressive 11 percent exceed $60 million. Such figures reveal that public cloud investment is not merely a cost center; it has evolved into a strategic imperative for many businesses.
These numbers not only reflect the growing adoption of public cloud services but also illustrate the strategic choices enterprises are making about their cloud vendors.
The Dichotomy of SMBs and Enterprises
A striking revelation from the report comes from the different spending behaviors between SMBs and large enterprises:• AWS appears uniquely appealing to the SMB segment. This could be attributed to AWS’s extensive service catalog, competitive pricing, and long-standing market presence that resonates with smaller organizations seeking to optimize their operational agility and scalability.
• In contrast, enterprises seem to lean towards Microsoft Azure. The slightly higher draw for Azure among larger organizations may come from its seamless integration with existing Microsoft investments—both software (Windows Server, Office 365) and licensing contracts. For many Windows IT managers, Azure represents a natural extension of their current IT ecosystem.
One might ask: why is there such a divergence in provider preference? It likely comes down to a mix of historical ties, contract structures (like the pervasive Microsoft Enterprise Agreement), and the operational scale of these organizations. The clear takeaway is that context matters—what works well for an SMB might not serve an enterprise as effectively, especially when dealing with the intricacies of cloud cost optimization.
Discount Strategies and Their Impact
Nearly every Flexera respondent mentioned using a discount option offered by their provider. The most noteworthy of these is the Microsoft Enterprise Agreement discount, which helps lock in favorable rates and terms for cloud services. This discount strategy underscores how critical long-term contractual relationships are in the cloud space—making it easier for companies to plan and budget their cloud investments.For Windows IT professionals, the implications are significant. With Microsoft’s broad portfolio and deep integration across Windows platforms and business applications, the discount not only reduces the cost of cloud services but also enhances the overall financial flexibility of the enterprise. It’s a strategy that highlights the importance of vendor ecosystems and long-term planning in IT budgeting.
Cloud Adoption: At a Tipping Point
Flexera’s report paints a picture of widespread cloud adoption. According to the findings, over half of all enterprise and SMB workloads now run on public clouds—a remarkable statistic that signals cloud dependency is no longer optional, but a central pillar of modern IT strategy.Despite some organizations starting to repatriate workloads back to private data centers, only 21 percent of workloads have been repatriated. In other words, even as a few workloads see the light of day back on-premises, the scale of new cloud migrations and net-new cloud workloads far outweighs these withdrawals. This ongoing migration trend is a clear marker that cloud adoption has reached a critical mass.
IT leaders, especially those working with Windows-based infrastructures, must pay close attention to this shift. The continued expansion of cloud workloads implies a need for robust hybrid-cloud management strategies and heightened focus on security, cost management, and seamless integration between on-premises and cloud environments.
What Does This Mean for Windows IT Professionals?
Even if your day-to-day tasks involve managing Windows updates or ensuring system security, the ripple effects of this trend in cloud spending are hard to ignore. Here are a few aspects to consider:• A significant portion of large enterprises is turning to Azure, which means Windows-centric IT departments are likely to see increased usage of cloud-based Microsoft services. This promises not only smoother interoperability with their existing Windows ecosystem but also innovative ways to leverage cloud-based tools for enhanced performance and automation.
• The competitive edge of AWS among SMBs suggests that organizations of this size are not ignoring robust cloud solutions. For Windows users in smaller companies, it underscores the importance of choosing cloud solutions that align with both operational needs and budget restraints.
• GCP's prominence among low-to-moderate spenders illustrates that cost optimization is key. For IT professionals responsible for budget management on Windows workstations, containers, or enterprise applications, leveraging cloud provider discount strategies can be a game-changer.
• With over half of workloads already in the public cloud, hybrid IT environments are becoming the norm. This scenario demands robust solutions that allow seamless migration and integration. Windows professionals must ensure that security architectures and management policies are updated to accommodate this duality, keeping both cloud and on-premises data protected and compliant.
Global Trends and Regional Insights
Geographic distribution also plays a role in how cloud spending unfolds:• North America dominates the survey with 63 percent of respondents, reinforcing the region’s leadership in cloud adoption.
• Europe’s 22 percent and Asia-Pacific’s 14 percent highlight the growing interest in public cloud in these regions, although they may face different regulatory landscapes and operational challenges.
For international enterprises and Windows IT professionals in multinational corporations, these regional nuances could influence strategic decisions when negotiating contracts or planning cloud architecture. A one-size-fits-all approach might no longer be viable, given the varied priorities and policies that govern cloud spending across different regions.
Looking Ahead: Strategic Implications and the Future of Cloud Spending
The Flexera report confirms that cloud adoption has truly “reached the tipping point.” This means that while the debates between cloud providers may continue, the overall trajectory is clear—it’s a win-win scenario where the cloud remains central to digital transformation strategies.From a broader perspective:
• The ongoing influx of net-new cloud workloads indicates that investments in public cloud infrastructure will only grow stronger in the coming years.
• Cloud service providers will continue to refine their pricing models, service catalogs, and discount strategies to attract various segments, from nimble SMBs to sprawling global enterprises.
• For IT professionals managing mixed environments—especially those working predominantly with Windows—this signals a need to balance cloud-first strategies with the realities of on-premises legacy systems, ensuring compatibility and security throughout.
The report clearly accentuates that strategic cloud planning is not only about choosing a provider, but also how organizations leverage the ecosystem surrounding that provider. Whether it’s leveraging discount agreements or managing resource scaling across hybrid environments, every decision counts.
Final Thoughts
Flexera’s 2025 State of the Cloud Report offers a robust analysis that goes far beyond dollars and percentages—it provides a blueprint for understanding the evolving dynamics of public cloud spending. For Windows IT professionals, these insights are particularly crucial. They highlight the importance of aligning cloud investments with broader organizational goals while capitalizing on the strengths offered by cloud giants like Microsoft Azure.So, with cloud migration accelerating and workload diversity increasing, the question for many IT leaders isn’t just “Which cloud provider is best?” but rather, “How can I ensure my organization’s hybrid environment, including our trusted Windows infrastructure, is future-proofed in this rapidly evolving digital landscape?” This is a question that will undoubtedly continue to shape IT strategies around the globe.
Source: CRN AWS Vs. Azure Vs. GCP Vs. Oracle Vs. IBM Customer Spending Face-Off: Report
