Many businesses are majorly overspending on cloud services

Date:
Thu, 02 Jun 2022 12:20:11 +0000

Description:
Enterprises are consistently spending more than necessary on their cloud services, claims report.

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Many businesses are majorly overspending on cloud services, potentially wasting millions of dollars every year, new research has claimed.

Couchbase found that with a typical enterprise spending more than $33 million a year on cloud services, and spending 35% more than whats necessary, many
are losing more than $8.75 million that could be saved or spent elsewhere

The company spoke to 650 senior IT decision makers about their experience
with cloud storage and cloud adoption, and chalked down the excess in costs
to a whole range of factors. Whats driving overspending?

These included not having enough insight into spend or ways to optimize
costs, the need to improve security and compliance functionality, and inflexible pricing plans that dont give enterprises what they need in a
single package.

In addition, Couchbase pointed the finger towards management tools that dont give the control needed; data not being stored where needed to meet
regulatory or performance requirements; and vendor lock-in, meaning enterprises cannot use the specific cloud infrastructure they want. Cloud conundrums

The research also highlighted issues with cloud computing more generally.

More than one third (36%) of enterprises said cloud services adopted in the last three years hadnotmet expectations, while 56% said past cloud decisions had made digital transformation projects more difficult in 2021, and 48% more expensive.

Enterprises are struggling against service limitations according to
Couchbase.

The majority -61% - of enterprises have had to restrict their digital transformation ambitions because of challenges with cloud services, while 58% choose cloud services that did not give the ability to scale the business to meet demand.

Asked to identify their top concerns around new cloud infrastructure,
security of data was identified by 43% of respondents, followed by managing data in the cloud (33%) and future-proofing to meet future digital needs (31%), while 30% are concerned about keeping costs under control in the future. Read More

Cloud computing is set for a massive spending boost in 2022

AWS: It's easy to forget, but 'life was painful' before the cloud

Cloud spending boom shows no signs of slowing down

However, despite this issues, 95% of enterprises surveyed saidthat increased movement of infrastructure to the cloud is inevitable.

By 2025, enterprises want 58% of their IT spend to be in the public cloud and said that they are currently more than halfway (56%) towards meeting that goal. Interested in moving to the cloud? Checkout our guide to best cloud hosting



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Link to news story: https://www.techradar.com/news/many-businesses-are-majorly-overspending-on-clo ud-services/


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