Organizations agree that moving away from on-premise IT is the right move, but according to The Flexera 2021 State of the Cloud* report, less than half of them use multi-cloud cost management tools and are mismanaging spend.
The report’s 750 survey respondents estimate 30 per cent of cloud spend is wasted, and for the fifth year in a row, are making cloud cost optimization their number one priority.
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Flexera’s respondents include cloud leaders from small to mid-sized businesses and large enterprises. Many of them are struggling to handle the financial complexities associated with software licenses and pricing options while confronting equally challenging security and governance needs across the organization.
“Respondents aren’t taking advantage of all cloud provider discounting options, but adoption is growing,” the report suggests.
Users are also beginning to adopt automated shutdown policies for certain workloads after hours.
Cloud is still complicated
Ninety-two per cent of enterprises say they have a multicloud strategy, 80 per cent have a hybrid cloud strategy (that’s the actual combination of public and private clouds), and on average, the survey found companies use 2.6 public clouds and 2.7 private clouds.
Organizational spend on public cloud is expected to grow by 39 per cent over the next 12 months.
The challenges associated with the rapid adoption and complexity are nothing new: 81 per cent of respondents listed security as a top challenge, 79 per cent said cloud spending and 75 per cent cited governance.
Managed services providers will be in high demand as more than half (54 per cent) of enterprise workloads are expected to be in the public cloud over the next 12 months.
