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Cloud business spending its squander 33%

Cloud Business Spending Its Squander 33%


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Over the past year, companies have jumped headlong into cloud computing. However, questions remain as to the extent of the waste. The latest report on the state Flexera cloud , based on the experience of 750 executives found that while a lot of money is spent in the cloud, it is still difficult to know where it goes.

Over a million dollars a year

Most businesses spend more than a million dollars a year on cloud computing services, but they are struggling to manage their growing expenses in this area. On average, respondents approximate that 30% of cloud spending is wasted. Based on its work with its customers, Flexera estimates this figure at 35%.
The fact that businesses do not take advantage of all the discounts offered by cloud service providers - although adoption of these services is on the rise - only compounds the problem. Just over half (52%) of AWS users use Reserved Instances, and only 46% of Azure users do. But organizations appear to be quickly adopting the AWS Savings Plan (44% in 2021 versus 30% in 2020), a new 2020 offering that clarifies discounts.
Businesses are also starting to rely on automation to keep cloud costs under control. Users take advantage of automated policies to stop workloads after working hours (49%) and resize instances (48%). Just over half of them, 55%, believe that understanding the financial implications of software licensing is one of the biggest challenges of the cloud.

Multicloud strategy

36% of companies report that their annual spend exceeds $ 12 million, and 83% that their cloud-related spend exceeds $ 1.2 million per year. These numbers represent an increase over last year, when the numbers were 20% and 74% respectively.
97% of respondents use at least one public cloud, while 80% have at least one private cloud. 68% use hybrid cloud. Multicloud also continues to gain ground and is the dominant strategy adopted by almost all of the companies surveyed. The most common multi-cloud approach among businesses is a mix of multiple public and private clouds. The adoption of private cloud is also strong. VMware vSphere remains the leader in a private cloud (36% currently use it), Microsoft Azure Stack usage is 35%, while AWS Outpost and OpenStack each hold 28%.
According to the survey authors, multi-cloud does not necessarily mean that individual applications span multiple clouds. The survey reveals that silencing applications on different clouds is the most common implementation (49%). Data integration is the most common type of architecture that spans multiple clouds. However, more than a third of respondents use more advanced architectures, such as workload mobility between clouds and individual applications that span public and private clouds.

The different multicloud architectures

Here are the different multi-cloud architectures used:
• partitioning of applications in different clouds: 49%;
• data integration between clouds: 45%;
• workload mobility between clouds: 42%;
• DR / cloud failover: 34%;
• distribution of individual applications between public and private clouds: 34%.
The use of public cloud PaaS services is increasing. A data warehouse is the most adopted, used by 54% of companies, while 28% of companies are experimenting with artificial intelligence and machine learning, more than any other PaaS service.
The main challenges are security, expenses, governance, and expertise. Overall, 81% of companies indicate security is a challenge, followed by 79% for managing cloud computing expenses and 75% for governance, lack of resources/expertise, and compliance.

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