Cloud computing has become the backbone of digital transformation for organisations across the UK and beyond. As cloud adoption accelerates, however, many IT leaders are facing a new challenge: cloud sprawl. Understanding what cloud sprawl is, why it happens and, crucially, how to prevent it, is now essential for IT Directors, Digital Transformation Leads, Heads of Innovation and CTOs who want to control costs, reduce risk and unlock the full value of their cloud investments.
What is cloud sprawl?
Cloud sprawl happens when cloud resources, such as applications, services and infrastructure grow unchecked across an organisation. It usually starts with the best intentions from teams wanting to move quickly and creating new environments and services as a result. Over time, this leads to a patchwork of workloads, platforms and tools, many of which are underused, duplicated or simply forgotten.
Why is cloud sprawl a problem?
Cloud sprawl can quietly drain your budget, increase security risks and complicate everyday operations. Some of the most common issues include:
- Rising costs: Idle or underused resources, redundant SaaS subscriptions and forgotten cloud instances all add up. Industry analysts estimate that up to 30% of cloud spend is wasted due to sprawl.
- Security and compliance risks: Untracked assets can become vulnerabilities, especially if they aren’t patched or monitored. Data may be stored in regions without proper regulatory controls.
- Operational complexity: IT teams are stretched thin managing a maze of platforms, permissions and integration points.
How does cloud sprawl happen?
Cloud sprawl is rarely intentional and more often the by-product of rapid digital transformation, decentralised decision-making and the result of the ease with which anyone can now provision infrastructure at the click of a button. Common causes include:
- Multiple teams or departments adopting cloud independently, often with different providers or platforms.
- Lack of governance or clear policies around provisioning, tagging and decommissioning resources.
- Shadow IT, where business units bypass central IT to get things done quickly.
- Mergers, acquisitions or legacy migrations that bring in new cloud estates with little integration.
How to prevent cloud sprawl: practical steps
Preventing cloud sprawl doesn’t require a complete IT overhaul, but it does demand clearer oversight and smarter consolidation. To start regaining control, consider:
1. Conducting a cloud inventory
A comprehensive inventory is the foundation for effective management, so beginning by auditing your current cloud landscape, including which apps and services are active, who owns them and the value they deliver will be pertinent.
2. Establishing cloud governance policies
Good governance is the backbone of cloud control. Set clear rules for cloud procurement, usage and approval. Define who can spin up resources and under what conditions. Standardise on approved tools and platforms to reduce duplication.
3. Consolidating and standardising
Where teams are using similar tools, consolidate onto a single platform. For example, unify file-sharing or collaboration tools across departments to reduce complexity and simplify cost management.
4. Implementing monitoring and alerts
Visibility is critical for preventing waste, so using cloud management tools to monitor spend, detect idle resources and track usage trends will be critical. Setting automated alerts to flag anomalies or unexpected spikes in usage will further support this.
5. Educating and aligning your teams
Most cloud sprawl happens with good intentions. Equip your teams with guidance on approved tools and platforms and make it easy for them to do the right thing. Regular training and communication help reduce shadow IT.
6. Reviewing and optimising regularly
Cloud environments are dynamic and require ongoing attention. By scheduling regular reviews, you can identify and decommission unused resources, right-size workloads, and renegotiate contracts where needed. Leveraging best practices such as the AWS Well-Architected Framework can help ensure your cloud setup remains secure, efficient, and cost-effective. The savings you unlock through optimisation can be reinvested to fuel your next wave of innovation.
7. Embedding security and compliance from the start
Every new cloud resource is a potential risk if not properly secured. Build security and compliance into your provisioning process, not as an afterthought. Automate patching, monitoring, and reporting to maintain a secure posture, and implement preventive and detective guardrails to enforce policies and catch misconfigurations early. Ensure you have clear visibility into where sensitive data resides and who has access to it, so you can act quickly if issues arise.
The CACI approach: practical, proven and partnership-led
At CACI, we see cloud as an enabler, not an end in itself. Our approach is grounded in practical experience, helping organisations regain control, reduce waste and build a foundation for sustainable innovation.
We start by understanding your current environment, mapping out where sprawl and hidden costs are lurking. We then work with you to design governance frameworks, implement visibility tools and optimise your workloads. Our partnerships with leading cloud providers mean we can offer best-in-class solutions tailored to your needs.
We recognise that cloud is never “done” but is an ongoing journey. We provide ongoing support, regular reviews and continuous optimisation, so you can focus on what matters: innovation.
Want to explore how your organisation can reduce cloud waste and regain control?
Speak to our cloud optimisation specialists today.