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Delivering Digital

The Costly Unpredictability of Enterprise Cloud Budgets

Strategic use of cloud deployments is accelerating innovation, but organizations struggle to manage cloud costs

Innovation experts increasingly point to the strategic use of the cloud as a key ingredient for digital transformation. But in the pell-mell rush to extract value out of the cloud, most enterprises are struggling to manage their costs in a chaotic hybrid cloud environment.

Hybrid sounds clean and intentional, but in reality what most organizations run is a complicated mash-up of cloud services interconnected in a labyrinthian joinery of APIs and network connections. What’s more, a recent study by Densify shows that most organizations aren’t using any kind of automated management tools to orchestrate their deployments and manage infrastructure.

This means they’re struggling to get the visibility and control they need in order to pull the right cloud levers for the right workloads. In many cases they’re going over cloud budgets in the process.

Conducted across 500 IT decision-makers, the Densify study showed that 45% of organizations reported they needed better management visibility into their public cloud workloads. Only a little over one in five organizations could say they have better visibility into their public cloud infrastructure than their on-premises deployments.

The study showed a startling lack of automation, as just one in three organizations say they’re using automation, AI, or machine learning to manage their cloud infrastructure.

Most troubling, though, was the fact that almost half of organizations report that they’re spending more than they budgeted for cloud. Approximately one in five said they’re busting their budgets with over 20 percent cost overruns.

 

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