Press "Enter" to skip to content

Cloud – four out of five enterprises incur unnecessary public cloud costs

More than four out of five organisations (82%) with workloads running in public clouds have incurred ‘unnecessary’ costs, according to a recent survey of 350 IT and cloud decision-makers in the UK and US by Virtana, provider of the industry’s first unified observability platform for migrating, optimising, and managing application workloads across public, private, hybrid and multi-cloud environments. 

Key problems highlighted in The State of Hybrid Cloud and FinOps report include: 

*Disjointed tools: 72% of respondents say they are fed up piecing together disparate management tools to monitor and manage everything from infrastructure performance to cloud cost and migration readiness; 62% cobble together multiple tools, systems and custom scripts to gain a global view of cloud costs. 

*Silos: 68% of respondents say their teams operate in silos, with 70% admitting that limited collaboration hinders their ability to adapt quickly and improve business outcomes.

*Unexpected costs: 82% of respondents have incurred unnecessary cloud costs, which can eat into budgets needed for other areas of transformation. 

*Lack of programmatic cost optimisation: 56% 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% of respondents run workloads in multiple public clouds. Yet 86% are unable to get a global view of cloud costs within minutes; 71% agree 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% of respondents find it hard to gauge whether they are delivering the service levels the business needs; 65% agree that when there is an issue, they are hard-pressed to identify the business impact. Three quarters (77%) cite increased performance issues as one of the reasons pressure on cloud teams continues to rise. Virtana’s findings are consistent with a recent Gartner report, which predicts that 60% of infrastructure and operations (I&O) leaders will encounter public cloud cost overruns that negatively impact their on-premises budgets to 2024 

(www.gartner. com/smarterwithgartner/6-ways-cloudmigration-costs-go-off-the-rails).

virtana.com/state-of-hybrid-cloud-andfinops-2021

2018