What challenge does traditional consumption face regarding financial agility?

Traditional consumption models often struggle with financial agility due to the challenge of over and under provisioning. This issue arises when businesses inaccurately estimate their computing resource needs. Over provisioning can lead to wasted resources and increased costs because companies invest in more hardware and services than they actually require. Conversely, under provisioning can impede operational efficiency and restrict scalability, leading to potential lost revenue and a reduced ability to respond swiftly to market changes.

By not being aligned with actual demand, organizations can miss the opportunity to be financially agile. Financial agility necessitates the ability to swiftly adapt to changing business requirements without incurring excessive costs or resource constraints. Thus, the challenge of managing optimal consumption levels is central to achieving financial agility. In contrast, other aspects like high initial investments and cloud dependencies, while significant, do not directly impact the immediate ability to maneuver financially as much as provisioning issues do.