A recent Pepperdata research study claims businesses across industries are exceeding their cloud budget by almost 40%.
To reduce the waste from IT functionalities and related processes while ensuring proper cloud optimization, businesses need observability and automated tuning – with ML and a unified analytics stack solution. Such an IT setup prepares the technology operations teams with the cloud solutions required to keep their organization running optimally with minimum spend.
More than 33% of enterprises have cloud budget overruns of around 40%, and one in 12 organizations exceeds this number – reveals a Pepperdata study. The company surveyed about 750 senior enterprises IT professionals across various industries, including advertising, finance, automotive, healthcare, and other data-intensive companies.
The aim was to better understand how companies run their big data applications as well as workloads in the cloud. The rapid shift to cloud computing is firmly underway. While the cloud offers the assistance of a pay-as-you-go model and the capability to be elastic on-demand, business leaders globally are expecting a rise in costs as we advance.
This is undoubtedly because IT process often lacks sufficient visibility into their cloud performance and does not have the precise tools to optimize applications. Some of the principal findings from the study are –
- Cost management and containment is the biggest concern with running cloud big data technologies and applications, reported about 64% of the respondents.
- A majority of the IT professionals noted the need for enhanced optimization of current cloud resources as their top-most priority for big data cloud initiatives.
- One in three respondents indicated that cloud spending was forecasted to be over budget by 20-40% in 2020.
- One in 12 IT respondents said that their cloud spend was anticipated to be over budget – by more than 40%.
- The significant concerns while running big data applications in the cloud is cost management (39%), increased complexity (33%), CapEx to OpEx (14%), and lack of control (13%).
Indeed, cloud optimization delivers significant savings. In fact, Google revealed even minimal cloud optimization efforts could net a company as much as 10% savings for each service in two weeks. Besides, cloud services that are fully optimized while operating on extended periods (more than six weeks) could save over 20%.
As explained by Ash Munshi, CEO at Pepperdata, in the company blog – “This research shows us the importance of visibility into big data workloads. It also highlights the need for automated optimization as a means to control runaway costs…Significantly more than half the companies surveyed indicate lack of control on cloud spend, making optimization and visibility the keys to getting costs under control.”