Monday, July 15, 2024

74 percent of companies struggle with cloud spending

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New research from tech consultancy esynergy, which surveyed 700 business and tech leaders in the US and UK, finds 74 percent of organizations struggle to optimize cloud spend.

It also finds that 51 percent anticipate making a change to their cloud strategy in response to cost pressures. Increasingly they’re looking at FinOps (financial operations) is to ensure that cloud resources are used efficiently.

The combined influences of the rapid advancements of generative AI, inflationary cost pressures, and sustainability concerns are forcing organizations to look closely and scrutinize ballooning cloud costs as their utilization increases.

While many organizations surveyed report deploying a range of methods to curb expenses (65 percent focus on storage optimization and 59 percent increased cost visibility and monitoring), these processes only offer short-term solutions.

Although many have looked towards a multi-cloud strategy to drive greater efficiencies, two thirds (66 percent) of respondents state that having a multi-cloud strategy is more complex than they had anticipated. With better visibility, organizations believe they could reduce cloud spending by up to 20 percent.

CIOs are considering FinOps as a holistic approach to tackle these issues. However, this is still in its early stages, just under half (45 percent) of organizations characterize their FinOps maturity as ‘being at the ability to walk’, and just 36 percent believe they have progressed to ‘the ability to run’.

Matt Lockyer, Platforms Practice Lead at esynergy says, “FinOps is the smartest thing a CIO can do. It is clear from our research that few people have a good understanding of FinOps, despite how crucial it is to business profitability in a digital age. Having a good understanding of your systems and costs is make-or-break for companies.”

You can get the full report from the esynergy site.

Image credit: Tom Wang/Shutterstock

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