Multi-cloud is sold as cost optimization. The data shows it costs 20-40% more.
Multi-cloud promise: negotiate better rates, avoid lock-in, optimize workload placement. Multi-cloud reality: 20-40% higher costs due to complexity, 2-3x networking overhead, duplicate tooling investment, and split volume discounts.
When multi-cloud actually makes sense: regulatory requirements (data sovereignty), genuine best-of-breed services, and disaster recovery. For most companies, single-cloud with good architecture is cheaper and simpler.
Like this analysis?
Get the weekly engineering economics briefing — one email, every Monday.
Subscribe Free →Most organizations overspend on cloud by 30-50%. Here's the systematic approach to right-sizing.
11 minChoosing the right cloud pricing model can save 40-70%. Here's when to use each.
8 minFive levels of cloud financial management maturity, from chaos to optimization.
8 minPublished Work
This article expands on ideas from my published work in CIO.com, Built In, Mind the Product, and HackerNoon. View published articles →
The Product Economist — Quantifying engineering economics for technology leaders, PE firms, and boards.