Updated October 2026 with 2026 survey data on cloud spending and hybrid setups, a section on where AI changes the decision, and an FAQ.

Summary: Cloud computing helps software teams scale on demand, keep applications available, and skip the up-front hardware purchase. The trade-offs in 2026 are spending that’s hard to predict and new questions about where data and AI workloads should run, which is why 73% of organizations in Flexera’s 2026 cloud survey run a hybrid setup.

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