Hybrid Multi-Cloud Managed Service Provider aptum released this week part three In its annual Cloud Impact Study 2022, the key finding is that cloud computing has resulted in higher costs for 73 percent of IT decision makers surveyed than expected.
“The unexpected costs associated with the cloud can be a challenge for many businesses that lack a comprehensive cloud strategy,” said Marvin Sharp, the company’s vice president of product and strategy. Is.”
Businesses, he said, don’t always “fully understand how consumption models work and which one is best for their organization. For example, native migration often results in a spike in price due to a lack of successful refactoring of applications.” This price increase can be large, and is not always explained to businesses, causing unnecessary worry.
Based on responses from 400 senior IT professionals based in Canada, the US and the UK, part One Part of the study was released in February and explored the deployment of workloads on different cloud infrastructures and the decision-making process behind their placement.
part Two was released in June and examined “the complexities inherent in hybrid cloud environments and their impact on security, data governance, compliance and disaster recovery.” Its findings showed that effectively managing security is no longer simply an issue of securing data in each environment, as data must also be secured as it moves between locations.
“Businesses use different environments for different purposes,” Sharp said. “One platform for application development and another as a production site, for example. That’s where you reap the benefits of a hybrid cloud environment, but moving workloads between the two environments puts data at risk. Therefore, In a mixed work environment, organizations need to consider securing point A and point B, as well as the movement of data between them.
As for the issue of unforeseeable costs examined in the latest installment, the report’s authors note that the 73 percent figure is “a significant increase from the 28 percent expected by more than half of companies (57 percent) in 2021.”
And in what amounts to a good news-bad news scenario, the findings showed that 71 percent of IT executives believe that cloud transformation “has a positive impact on operational efficiency,” although 65 percent of IT decision makers surveyed says they have “wasted significant IT” spend due to cloud inefficiencies.
According to Apptum, the top reasons for unexpected costs include:
- not familiar with the cloud Limited internal knowledge, expertise, and resources are barriers to effectively managing the cloud.
- fugitive cloud cost When businesses don’t configure the cloud to scale up and down effectively, they often consume more resources than predicted.
- The ‘Hotel California of Cloud’ effect The cloud is easy to enter, but hard to leave. Planning and expertise are key to avoiding egress charges when choosing the best cloud infrastructure for your workload.
- hybrid complexity Mixing hybrid, multi-cloud, and legacy infrastructure platforms has its own additional management costs.
- cloud modernization Organizations are increasingly looking to modernize their cloud applications. However, the lack of expertise and the existence of legacy systems often increase the complexity and cost for those seeking to do so.
- wrong consumption model – Companies unfamiliar with the cloud may find themselves adopting the wrong consumption model.
The report also states that “the cost implications of inflation represent some of our respondents’ most important concerns. In fact, cost reductions were the fourth-ranked driver for cloud transformation at 37 percent. Also, nearly as many Organizations (35 percent) estimate that controlling cloud costs will be their biggest challenge.
It further states that “there is clear evidence that the benefits of the cloud can have a positive impact on business financials, with 90 percent of organizations surveyed saying that cloud computing delivered the efficiencies they expected.”
“However, one of the big challenges for companies lies in their technical and strategic approach to cloud transformation, and whether they have the resources to deliver an effective approach.”