Key Highlights
- Nearly half of businesses find it challenging to get cloud costs under control.
- As per the new report by Anodot, the findings highlight an ongoing visibility crisis in which companies struggle to gain insights into the breakdown of cloud costs and cloud usage efficiency.
Almost half of businesses (49%) struggle to get cloud costs under control, and 54% believe their primary source of cloud waste is a lack of visibility into cloud usage.
According to a new report published by a business monitoring company Anodot, the findings highlight an ongoing visibility crisis in which organizations are finding it challenging to gain appropriate insights into the breakdown of cloud costs and efficiency of cloud use and hence cannot effectively reduce wasted spend even as cloud migration continues to increase and cutting costs is a priority. For the report, the survey was conducted on 131 US-based IT directors and executives.
Cloud Cost Report 2021 by Anodot
Anodot’s 2021 State of Cloud Cost Report revealed that the pandemic highly accelerated many companies’ shift to the cloud, and the latest survey confirms that the transition is continuing as businesses continue to highlight the agility and scalability the cloud provides:
- 91% of respondents reported they currently have IT infrastructure in the cloud
- 60% said that migrating more workloads to the cloud is their top cloud initiative in the coming year.
As organizations continue to face high monthly cloud bills with cloud costs ranking second only to payroll in business expenses, optimizing spending and reducing wasted dollars are top priorities, many visualizing costs, especially in the wake of a slowing economy.
Cloud costs are also becoming highly complex to track and understand, leading to misspending. For example, 46% of executives reported that overprovisioning is a primary source of cloud waste, while 45% blamed cloud assets’ fragmentation across teams and vendors.
David Drai, Anodot CEO and co-founder, said that shifting to the cloud requires a delicate balance between the speed of workload migration and cost control. As a result, cloud cost management is more crucial as businesses strive to mitigate wasted resources and shore up revenues based on four key elements: visibility, recommendations, insights, and automated actions.
Enterprises leveraging AI and ML to control and optimize their cloud environments are seeing immediate results and reduced waste, unlocking the actual value the cloud has always promised.
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