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Tuesday, September 28, 2021 at 12:58 AM

Cloud sticker shock is all too frequent, but it may be avoided in certain cases.

The initial value proposition of the cloud was that it would save businesses money by avoiding upfront hardware and software expenditures. However, it turns out that a significant amount of money is already being spent on cloud services, and that some of it is squandered. The essence of two survey studies on cloud expenditure is as follows:

According to one estimate, businesses are wasting or misusing $24 billion in cloud expenditures. The worldwide Infrastructure-as-a-Service industry is estimated to be worth $48 billion by 2021, according to 451 Research's Market Monitor service. More than a third of poll respondents, 36%, said they exclusively use cloud at on-demand rates, which is the most costly option. That's unfortunate because, according to the study's authors, "our Cloud Price Index finds that, across the five hyperscalers, average savings of 36 percent on the cost of a simple application — consisting of virtual machines, storage, and networking" can be achieved simply by utilizing commitment discounts.

Pros and Cons of Cloud Computing: The Good, the Bad, and the Ugly

Virtana faults fragmented point tools, silos, lack of visibility, unanticipated expenses, and lack of programmatic optimization in a recent study of 350 IT decision makers. According to the survey's authors, the majority (82%) of businesses with workloads operating on public clouds have suffered needless cloud expenditures.

Inefficient cloud operations are emerging as a major impediment to fully exploiting the benefits of cloud computing. For example, 68 percent of all respondents indicated their teams work in silos, and 70 percent said restricted communication makes it difficult for them to change fast and enhance business results.

The following are some of the causes of cloud sticker shock:

Workloads have beyond the agreed-upon capacity in 41% of cases.
Overprovisioning of computing or storage resources accounts for 35% of all cases.
Storage blocks that are no longer connected to a compute instance account for 34% of all storage blocks.
22% of workers have poor job scheduling.
Overbuying or having unused reserved instances accounts for 18% of all purchases.

The study also reveals a lack of visibility across hybrid and multi-cloud environments: although 84 percent of respondents operate workloads across various public clouds, 86 percent stated they can't obtain a global picture of cloud costs in minutes, causing delays and possibly decreasing agility. Limited visibility across the hybrid cloud environment, according to 71% of respondents, limits their ability to optimize value, causes inefficiencies, and wastes time.

Furthermore, 66 percent of respondents said it's difficult to know whether they're providing the service levels the company requires, and 65 percent said it's difficult to determine the business effect when there's a problem. Furthermore, 77 percent identified growing performance problems as one of the reasons why cloud teams are under increasing pressure.

Furthermore, 72 percent of respondents stated they are tired of putting separate management solutions together to monitor and manage everything from infrastructure performance to cloud pricing and migration preparedness. Another 62 percent say they use a combination of tools, platforms, and custom scripts to obtain a comprehensive picture of cloud expenses.