AI-centric cloud monitoring and ML solutions are the most effective ways to tackle the growing cloud costs across enterprises, reveals a recent study.
Cloud-related costs across enterprises are becoming extremely tricky to track, given the increased inclination towards digital transformation. This trend is making it more challenging for IT, finance, and operations teams to manage cash flow and set reasonable expectations for cloud usage.
Anodot surveyed more than 100 senior IT, operations, and finance leaders in 2Q of 2021. It published the findings of its recent survey revealing how organizations struggle to control climb the sharp cloud computing costs of the remote workforce as businesses across industries move to a hybrid model.
Overall, enterprises shared their experiences around managing cloud costs amid the pandemic. Shortly thereafter as vaccination drives are becoming commonplace, many of them are somewhat planning to return to work as they are having a hard time managing cloud computing costs.
However, there are ways that prominent organizations are on to manage this issue. In most cases, within a month of deploying an AI solution, companies can cut cloud costs by roughly 10% – while providing long-lasting results to improve IT operations.
Some of the principle highlights from the study are –
- Only 20% of the respondents indicated that they were able to detect spikes in cloud costs immediately
- More than 25% of the professionals stated that it took months or weeks for them to notice a surge in cloud costs
- Nearly 59% of those who spend in excess (of $2M monthly) on cloud usage, it often takes days to detect an abnormal surge
- About 60% of companies admitted detected anomalous cloud surges – equating to almost $100,000s in unnecessary revenue loss
- On heavy cloud usage days, almost 50% of the leaders noted that cloud costs can increase by as much as 10-19%
- About 30% of the respondents found a 25-50% jump in cloud-based solution costs month-to-month – for a period of six months
According to the study, nearly 77% of respondents who utilized more than $2 million for cloud solutions revealed they were surprised by how much they paid out. Certainly, 2020 was a critically challenging year for businesses managing cloud costs. And many companies had a puzzling experience while transitioning into the cloud.
In this context, David Drai, CEO at Anodot explained – “Undetected mistakes often account for rising cloud costs, and those glitches are not found by traditional monitoring tools used by most organizations. Given the rise in cloud costs due to digital transformation and a shift to hybrid workforce models, it is incumbent on IT leaders to use the correct tools to monitor their cloud costs.”
Thus, AI-centric cloud monitoring and ML solutions are the most effective ways to tackle the growing cloud costs – by detecting and resolving spikes in technology practice before significant expenses. This is the most accurate solution for problematic usage before they take a toll on the revenues.
To further improve cloud cost optimization, AI-based cloud cost monitoring can forecast future cloud costs. This will indeed help organizations to conduct advanced planning and strategize better.