82% Of Organisations Have Incurred ‘Unnecessary’ Cloud Costs


A recent survey of 350 IT and cloud decision makers reveals the challenges enterprises are facing across the hybrid cloud amid disjointed point tools, silos, lack of visibility, unexpected costs, lack of programmatic optimisation, and the role risk plays in cloud cost management. The survey was fielded in the United States and United Kingdom by Arlington Research, and commissioned by Virtana.

Survey findings show that a large majority (82 per cent) of organisations with workloads running in public clouds have incurred “unnecessary” cloud costs. In line with these survey results, Gartner predicts that through 2024, 60 per cent of infrastructure and operations (I&O) leaders will encounter public cloud cost overruns that negatively impact their on-premises budgets.

“The pandemic has accelerated organizations’ journey to the cloud,” said Archana Venkatarman, Associate Research Director, Cloud Data Management, IDC Europe. “In fact, a ‘more aggressive move to the cloud’ was cited as the top item on the list of planned changes to the IT strategy as a result of the 2020 crisis, according to IDC’s COVID-19 Impact Survey in 2020.” 

Archana continued, “Public cloud platforms provide enterprises with agile, on-demand, flexible access to resources to align with a digital business’s dynamic needs. But inefficient cloud operations are emerging as a top barrier. The duct-taped point tools and silos can make cloud cost management complex. The belief that they are wasting at least 15% of their public cloud spending will drive enterprises to actively invest in cloud cost management to halve cloud waste.” 

Also Read: Top Five Challenges Enterprises Will Face in 2021

Virtana survey findings underscore the need for IT leaders to address the following areas in order to execute a successful digital transformation:

  • Disjointed tools: 72 per cent of respondents said they are fed up piecing together disparate management tools to monitor and manage everything from infrastructure performance to cloud cost and migration readiness. 62 per cent report they cobble together multiple tools, systems, and custom scripts to get a global view of cloud costs.
  • Silos: 68 per cent of all respondents stated their teams operate in silos and 70% of respondents said limited collaboration hinders their ability to adapt quickly and improve business outcomes.
  • Unexpected costs: 82 per cent of respondents have incurred unnecessary cloud costs, which can eat into budgets needed for other areas of transformation.
  • Lack of programmatic cost optimisation: 56 per cent lack programmatic cloud cost management capabilities, which can mean either that teams are spending too much time managing cloud costs or that cloud waste is allowed to fester.
  • Lack of visibility across hybrid and multi-cloud environments: 84 per cent of respondents are running workloads in multiple public clouds yet 86 per cent of respondents said they cannot get a global view of cloud costs within minutes, creating delays and potentially reducing agility. 71 per cent of respondents agreed that limited visibility across the hybrid cloud environment hinders their ability to maximise value, creates inefficiencies, and wastes time.
  • Risk and pressure on IT: 66 per cent of respondents stated it is hard to understand if they are delivering the service levels the business needs, and 65 per cent agreed that when there is an issue, they are hard-pressed to identify the business impact. In addition, 77 per cent cited increased performance issues as one of the reasons that pressure on cloud teams continues to rise.

Christina Richards, Chief Marketing Officer of Virtana added, “The survey shows that one of the biggest challenges is how to manage workloads operating in the cloud to avoid unexpected costs. While it’s clear that experience makes a difference, so does having a single modular platform for de-risking cloud migrations, having deep precision observability into workloads before, during, and after the move, and optimizing and managing efficiently once workloads are in the cloud.”