3 ways to boost cloud funding and accelerate innovation

It's no secret that modernising apps and data in the cloud drives competitiveness. Cloud scalability, security, analytics and AI services enable innovation, more efficient operations and better customer experiences.

Although the benefits of well-governed cloud environments are clear, the initial financial outlay for ambitious transformations can seem a hurdle for all but the biggest players.

According to SoftwareOne research, 48% of technology leaders at mid-sized companies lack funding certainty for the next round of innovation, and only 32% can rely on dedicated innovation budgets. More often than not, powering innovation today means funding an AI business case that depends on cloud capability.

How then, can organisations overcome cost barriers and avoid delaying projects that are essential to their future viability?

Rockets are a useful analogy

The start of a cloud initiative can be likened to launching a space shuttle. Not because it’s an impossibly complex effort, but because planning and preparation ahead of launch is crucial. This includes ensuring there’s adequate fuel (funding) to maintain momentum until the project is off the ground.  

Before an initiative is operational and returning value to the business, numerous costs may need to be accounted for. These include pre-migration assessments, direct migration costs, potential parallel environment expenses, and investment in the necessary skills to leverage the new capabilities.  

Shuttle launches combine a main propellant with boosters, and similarly, extra funding sources from the start can prove decisive for a cloud initiative. These funds may enable you to take a strategic modernisation path rather than settling for a tactical solution, creating better long-term business outcomes.  Additionally, with greater resources you can avoid major compromises in capability, governance and change management, and have financial headroom if the project encounters a setback.  

In short, maximizing upfront investment through combined funding sources can significantly reduce risk and improve the chances that the project meets its business goals. 

Launch booster 1 – Partner programmes 

Hyperscalers like AWS, Google and Microsoft are heavily invested in customer success and offer programmes designed to de-risk and offset migration costs. For organisations new to the cloud or those embarking on large-scale migrations, these are invaluable.

AWS Migration Acceleration Program (MAP), Google Cloud's Rapid Migration & Modernization Program (RaMP) and Azure Migrate and Modernize (AMM) are cornerstone initiatives. They provide tools, improved licence conditions, and, crucially, financial incentives that can offset initial migration costs, often covering a portion of partner fees or providing service credits.

These programmes offer a proven formula with a predictable funding model that can significantly assist in the creation of your transformation business cases. For example, EGL Tours’ technology team needed to prove to business leadership that modernising their business-critical customer booking system was financially viable. SoftwareOne’s extensive expertise and the proven approach of AWS MAP helped make a convincing case, resulting in transformation that improved customer experience and saved 70% on infrastructure costs. 

Launch booster 2 – IT cost optimisation 

A second vital source of funding is savings made within your own IT department. SoftwareOne research shows that 46% of companies report software or cloud costs that are too high, showing widespread potential for savings that can be reinvested in modernisation.

The same study found that companies that place a high priority on IT cost optimisation as well as innovation were much more likely than others to be using AI to transform internal processes (84% vs 48%) and customer interactions (71% vs 47%). These companies optimise to innovate, converting wasted spend into funding for initiatives like cloud modernisation and AI process transformation, achieving superior business outcomes. 

Savings can be found across your estate by rationalising apps and purchasing strategic apps at scale, optimising software contracts and retiring legacy infrastructure. Purchasing software through your hyperscaler’s cloud marketplace can also lead to overall savings by enabling discounts which are linked to your committed spend being achieved.  Specialised support from licensing experts can save millions. SoftwareOne have a proven track record in this domain, saving clients in North America and Europe alone $574m in avoided software costs from July 2024 to April 2025.  

Launch booster 3 – Sector specific grants 

Another, often under-utilised approach to funding involves investigating if public grants are available to your organisation.

For example, the Open Clouds for Research Environments (OCRE) framework connects research and education institutions in Europe with leading cloud providers like SoftwareOne, offering discounted pricing and funding opportunities.

In the private sector, UK Research and Innovation offers funding ranging from £25,000 to £10 million which can be invested in cloud infrastructure so long as it directly enables specific innovation projects. UK businesses of any size can apply for funding if they are aiming to test the feasibility of an idea, or create or improve a product, process or service through R&D.

Similar initiatives are available in many countries, especially in key industries that governments are championing for growth. Even smaller grants can make a difference when combined with other funding sources, so it is worth taking the time to explore what may be available.

The importance of mission control 

So now with solid planning, preparation and funding you’ve successfully launched your initiative – It’s mission complete, right?

Not exactly. To make your investment pay-off, focus must shift towards measuring progress against your project KPIs and continuous cost management. Without guardrails, the costs of operating in the cloud can gradually creep upwards. This is a common challenge – according to Flexera, controlling costs on current initiatives is the top cloud priority today, with 74% of organisations targeting savings.

Effective adoption of FinOps tooling and methodology is therefore crucial to making your cloud investments pay off. McKinsey estimates that with effective implementation of FinOps, an organisation can save up to 30% on cloud run costs with these practices.

With efficiency gains from modernised applications and savings from FinOps, your organisation will be able to take out the cost and provide the investment that will fuel the next wave of innovation. As the success of the Optimised Innovators in our global study demonstrates, financial agility and smart investment isn’t just good business – it’s a requirement for many companies to adapt to a fast-changing world.