We continue our look at our April Marco Views Survey Findings. As we move further into 2025, Cloud spending, particularly in Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS), continues to lead the IT investment landscape, though signs of moderation are becoming clear.

Cloud Spending Still Strong, But Growth Slows

According to ETR’s April 2025 data, overall Cloud (IaaS, PaaS) spend is projected to increase +7.4% year-over-year, the highest of the four core IT sectors. However, this represents a notable slowdown from the +9.5% y/y growth seen in 2024, marking a 207 basis point decline in expected full-year spending projections—the sharpest drop among tracked areas.

Still, organizations remain committed to the Cloud:

• 68% of respondents anticipate increasing their Cloud spend by 1% or more, unchanged from the previous survey.

• 33% expect to increase Cloud budgets by 10% or more.

• However, 12% now expect a Cloud spending decrease of 1% or worse—up from 8%—with 5% expecting a cut of 10% or more.

These numbers suggest a continued strategic focus on Cloud, tempered by cautious optimization as organizations navigate cost controls and maturing deployments.

Cloud Pricing Pressures Persist—But May Be Stabilizing

While demand remains steady, Cloud pricing continues to trend upward:

• On average, respondents report that Cloud prices rose +2.6% over the past six months (compared to 7–12 months ago). This marks a decline from January levels but remains in line with mid-to-late 2024 trends.

• 56% of respondents said vendors have raised prices for the second survey in a row.

• 15% indicated increases of 6% or more (down from 18%), suggesting a potential easing in price hikes.

• Meanwhile, 22% reported flat pricing, and 9% observed price reductions.

This softening in pricing escalation—while still prevalent—may reflect growing competition among cloud providers and increased scrutiny from buyers.

Cloud vs. Other IT Categories: A Clear Gap

While Cloud remains the dominant growth area, other tech segments are seeing slower spending outlooks paired with comparable or even steeper pricing increases:

• Software (on-prem, SaaS): +3.9% spend growth | +3.3% pricing increase

• Hardware: +1.4% spend growth | +3.0% pricing increase

• Outsourced Services: +1.0% spend growth | +2.8% pricing increase

In contrast to these categories, Cloud investments show stronger alignment between projected budget growth and price changes, reinforcing its centrality to digital transformation initiatives.

If you are looking for more Macro Views Survey data, a downloadable summary is now available.