Aptum, a managed services and advisory service provider, recently published part two of its annual Cloud Impact Study 2023.
The study found 71% of IT professionals surveyed revealed that cloud-related expenses constitute 30% or more of their overall IT expenditure.
In today’s economy, Aptum notes that organizations realize the financial impact of their operations. While the cloud offers benefits like flexibility and cost efficiency, unforeseen costs exist. Over half of IT professionals (52%) admit to wasted IT spending due to inefficiencies with cloud platforms and services.
Meanwhile, 73% of IT respondents reported higher-than-expected IT costs from cloud investment in the past year, a 28% increase from 2021. The study reveals that 92% of IT professionals will likely conduct a complete ROI analysis of cloud spending.
The survey findings highlight key challenges in cloud implementation, such as poor planning, lack of expertise and complex solutions. Organizations need help with hybrid, multi-cloud strategies. Lack of internal knowledge hampers cloud adoption for many respondents. The study says that developing cloud strategy skills is crucial to address rising costs.
Ian Rae, CEO and president at Aptum, notes that many organizations believe they are excelling in the cloud when in reality, they face challenges.
“It isn’t the cloud that is costly but the lack of observability and governance which hinder management and lead to cost overruns,” explains Rae.
“This shortfall significantly hampers the ability to unlock the cloud’s potential for enhancing operational efficiency while controlling costs.”
The report also notes that organizations face challenges in maximizing the value of their cloud spending as they expand cloud adoption. IT leaders need a comprehensive multi-cloud strategy to harness the transformative potential of the cloud.
According to Aptum, organizations need a clear investment strategy to achieve continued cost savings in the cloud that prioritizes visibility and cost control.
This is particularly important for companies expanding their cloud presence and navigating complex multi and hybrid cloud environments. The report notes that implementing FinOps principles is crucial for operating efficiently in the cloud.
FinOps, or Financial Operations, offers benefits for cloud expenditure management. It provides cost visibility and accountability, optimizes resource usage, facilitates decision-making and forecasting, encourages cost consciousness and ensures continuous improvement in cloud financial management practices, the Aptum study adds.
The study surveyed 400 senior IT professionals from medium to large organizations in the United States, Canada and the United Kingdom.
Earlier this year, Aptum announced its acquisition of the Montreal-based cloud consulting and managed services company CloudOps. Company executives said this move allowed Aptum to enhance its cloud migration and DevOps solutions, expanding its capacity to provide hybrid multi-cloud services to its customers at various stages of digital transformation.
Aptum | cloud computing | cloud management | FinOps