Oct 29 2025
Cloud

Why Midsize IT Leaders Are Turning Cloud Optimization Into a Competitive Edge

Cloud optimization for midsize businesses goes beyond cost-cutting — IT teams use it to better align workloads with business objectives, enforce policy and accelerate development workflows.

Midsize enterprises are increasingly viewing cloud optimization as a strategic lever, moving beyond cost-cutting to unlock broader value through smarter workload management, stronger governance and tighter integration with DevOps.

Optimization today means aligning workloads with business goals — balancing performance, compliance and cost — while also ensuring cross-cloud visibility and enforcing policies at scale.

In addition, by embedding efficiency checks directly into continuous integration and continuous delivery (CI/CD) pipelines, IT teams can shift optimization left, making it a proactive part of development rather than a reactive fix.

For midsize IT leaders, this approach turns cloud optimization into a competitive edge, driving both operational efficiency and business agility.

“When a significant share of workloads moves to the cloud, you can’t treat it as a niche team anymore,” says Roy Illsley, chief analyst of IT operations for Omdia. “You need the right tools, processes and skills to manage differently.”

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Aligning Workload Placement With Business Objectives

Cloud optimization can ensure the organization’s workloads are aligned with business performance, compliance and risk requirements.

Illsley says IT leaders in midsize organizations face the challenge of deciding which workloads belong on-premises, at the edge or in the cloud, and then tuning them to meet business demands.

“The first parameters you need to determine are the core characteristics of that workload, as well as the business expectations and the risks,” he says. “Once you’ve mapped those out, you can identify whether a workload is best in the cloud or best on-premises.”

This decision-making is often driven by deadlines and performance needs. Illsley notes that financial reporting jobs, for example, have strict timelines that may justify more expensive, guaranteed resources.

In contrast, a developer’s test workload could run overnight on lower-cost spot instances without impacting business outcomes.

“You can’t have it the cheapest, the most high-performance and the most risk-free all at once,” Illsley says. “You have to prioritize — decide what’s most important, then allocate resources accordingly.”

He adds that for midmarket enterprises, these conversations tend to be more straightforward than in large organizations.

“IT leaders in the midmarket are much more likely to talk directly with business leaders about priorities, risks and costs,” Illsley explains.

This alignment ensures optimization strategies don’t just trim expenses but actively support business objectives, driving smarter scaling and long-term resilience.

READ MORE: Accomplish a business-first approach to cloud transformation.

Enhancing Multicloud Visibility and Policy Enforcement at Scale

For many organizations, multicloud is no longer a choice but a reality. Most enterprises today use at least three cloud providers for infrastructure and platform services. And when Software as a Service platforms such as Salesforce and Microsoft 365 are included, that number often climbs to seven or more.

Multicloud is something that’s often misunderstood,” Illsley explains. “In practice, most companies have a dominant provider — AWS, Azure or Google — but visibility into what’s happening across the other environments is where the challenge lies.”

For IT leaders, the real issue isn’t just managing multiple clouds individually but ensuring they can see, compare and enforce consistent policies across them.

“Optimization in the multicloud world means having transparency into how workloads are performing in each environment and balancing that against compliance and cost requirements,” Illsley says.

For example, a database-heavy workload might be best placed in one cloud known for its data services, while lighter workloads run elsewhere. But without visibility, these decisions are hard to validate.

Governance frameworks and automation tools help IT teams enforce consistent rules and spot gaps before they impact performance or security.

“It’s not usually about running workloads across clouds,” Illsley adds. “It’s about knowing what you have in each environment, applying the right guardrails and making sure you’re managing the full picture rather than isolated silos.”

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Embedding Optimization Into CI/CD and DevOps Pipelines

Midsize organizations are beginning to integrate cloud optimization directly into their development workflows, leveraging tools like GitHub Actions, HashiCorp and Kubernetes. A partnership with a company like CDW can help them operationalize efficiency early without slowing their digitalization journey.

Illsley says this trend reflects the growing maturity of cloud practices, even if many organizations are still working through the complexity.

“In a lot of companies, cloud optimization is handled by FinOps teams, which often report into either the CIO or CFO,” he explains. “They look at commitments, spot pricing and resource utilization across CPU, memory and storage.”

Embedding optimization into CI/CD pipelines extends these practices into the day-to-day work of developers.

EXPLORE: The benefit of breaking data silos.

“If you can build your applications and build the infrastructure so developers can just, say, know it will fit with how the organization has purchased cloud services, then you’re starting to get to an optimal process,” Illsley says.

He acknowledges the midmarket still faces challenges aligning Infrastructure as Code with broader purchasing and governance practices, but the direction is clear.

For IT leaders, the opportunity lies in closing the gap between DevOps, FinOps and procurement — turning optimization from a reactive task into a proactive part of the software delivery lifecycle.

“It’s definitely where things are headed,” Illsley notes. “When you can tie Infrastructure as Code to what your FinOps and procurement teams are doing, you ensure what’s built is also what’s most cost-effective to run.”

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