Enterprises Struggle with Cloud Cost Management amid Accelerated Digital Transformation

Enterprises Struggle with Cloud Cost Management amid Accelerated Digital Transformation

Even though nearly 85% of enterprises feel confident about successfully managing cloud bills, 82% have incurred “unnecessary” cloud costs.

As per Virtana’s 2021 “The State of Hybrid Cloud and FinOps” research carried out in the United States and the United Kingdom, enterprises are struggling to cope with the unnecessary cloud costs. The survey of over 350 IT and cloud decision-makers found that the biggest challenges facing them regarding hybrid cloud are the disjointed point tools, lack of visibility, lack of programmatic optimization, unexpected costs and the role risk plays in the overall cloud cost management. Additionally, the survey findings have revealed that 82% of enterprises with workloads running in public clouds have incurred “unnecessary” cloud costs.

In line with the results of the survey, Gartner predicts that by 2024, 60% of infrastructure and operations (I&O) leaders will encounter public cloud costs that can negatively impact their on-premises budgets.

Since the pandemic has accelerated the digital transformation journeys of enterprises, most organizations are aggressively taking initiatives to move to the cloud. While utilizing public cloud platforms enables organizations with on-demand, agile, flexible access to resources, inefficient cloud operations has emerged as a top barrier for them. Moreover, silos can increase the complexity of cloud cost management.

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Virtana survey findings reveal why IT leaders should address the following areas for executing a successful digital transformation:

  • Disparate management tools: Over 72% of respondents stated that they have grown weary of piecing together disparate management tools for monitoring as well as managing everything from infrastructure performance to migration readiness and cloud cost. Additionally, 62% of respondents reported that they utilize multiple solutions and custom scripts to get a global view of cloud costs.
  • Operating in silos: 68% of survey respondents said their teams operate in silos. 70% said this led to limited collaboration which in turn hampered their ability to adapt quickly and improve business outcomes.
  • Hidden costs: 82% of respondents said they incurred unnecessary cloud costs which is taking a huge chunk of the budgets required for other areas of transformation.
  • Lack of visibility across multi-cloud and hybrid environments: Even though 84% of respondents claimed that they are currently running workloads in multiple public clouds, 86% of respondents said they are not able to get a global view of cloud costs within a small period. This has created delays as well as reduced agility. Furthermore, 71% of respondents admitted that lack of visibility across the hybrid cloud environment is hindering their ability to maximize value, creates inefficiencies and wastes time.

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“Our recent survey results tell a compelling story,” says Christina Richards, CMO, Virtana. “IT professionals are the unsung heroes of enterprises because they were forced to accelerate digital transformations during the pandemic with no increase in staffing, budgets, or the tools to manage the process and the bottom line. While the migration to a multi-cloud environment with remote workforces was mandatory, many enterprises were able to successfully navigate this phase of the journey.

However, the next chapter of the story is that the bills have come due, and many are facing unexpected (and unnecessary) cloud costs-and the complexity of this new reality will only accelerate. It is imperative for organizations to recognize the full impact of these changes and to provide IT professionals with the best tools to thrive in the new normal with confidence, transparency, and trust that the bottom line is effectively managed.”

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Vishal Muktewar is a Senior Correspondent at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.