Forrester: IT departments are blowing their cloud budgets
Date of creation: April 4, 2024, 3:17 p.m. From SITE: https://www.computerweekly.com Original page link
Original page content The latest research from Boomi, conducted by Forrester, has reported that IT leaders expect their cloud costs will exceed budgets. The analyst firm has forecast that public cloud spending will hit more than $1tn globally by 2026. In a survey of 420 IT decision-makers, Forrester found that IT leaders are concerned that cloud workloads and costs will grow even more rapidly over the next two years and expect cloud workloads and costs to continue increasing more quickly over the next two years. Nearly three in four (72%) of the IT decision-makers polled reported that their company exceeded its set cloud budget in the most recent fiscal year. Among the areas experiencing an acceleration of cloud deployments are: applications/workloads in IT operations (54%); hybrid work (50%); software development platforms and tools (45%); and digital experiences (44%). The survey found that perennial problems such as excessive storage and the overconsumption of network bandwidth contribute to an increase in costs. However, Forrester also found that a lack of integration strategy and efficient cloud architectures is also to blame for rising cloud costs. The survey showed that over half (52%) of IT decision-makers polled say excessive storage is driving up cloud costs. Overuse of network bandwidth was the reason for increased costs given by 42% of those polled, while 44% had lack of integration as a criteria driving up their cloud costs. The survey reported that 41% of the IT decision-makers polled admit that they are not able to build cost governance in their cloud infrastructure. According to Forrester and Boomi, IT leaders are beginning to see both architecture and integration as part of the cloud cost equation. The findings have been published in a new report, Cloud costs are out of control: integration And modernization can help rein them in. Forrester and Boomi note that emerging FinOps practices are not spared the challenges associated with reactive cloud cost remediation strategies. “By focusing too much on managing costs only after they’ve ballooned out of control, organisations lose the opportunity to proactively control costs before they become a problem,” the authors of the Cloud costs are out of control report said. The report states: “As the role of FinOps in cloud cost management has expanded, more teams and functions within the organisation have increasing responsibility for cloud costs, yet many decision-makers report that visibility into these costs across roles remains elusive today. A lack of cloud architecture that supports cost containment at the integration level also prevents leaders from advancing their FinOps.” The survey also found that 72% of decision-makers believe that cloud architecture integration and modernisation initiatives have the potential to transform their company’s ability to reduce cloud spend. According to the report’s authors, as a result of current integration and modernisation initiatives, decision-makers are already experiencing improved cloud spend governance, more effective cost management, the elimination of redundant data flows via prebuilt integrations, and the ability to use generative AI to improve app integration efficiency. Forrester and Boomi note that the findings of the survey show that cloud architecture integration and modernisation initiatives lead to more effective cross-team collaboration, better FinOps enablement, and the ability to shift resources toward innovation, such as fast-tracking generative AI language model adoption. “We believe the findings are a clear example of integration being left out of the cloud cost equation,” said Ed Macosky, chief product and technology officer at Boomi. “When systems are disconnected and data is siloed, companies are only seeing part of their organisations’ cloud cost picture, and this lack of visibility impacts tracking and decision-making.” Read more about cloud cost management Deploying and managing AI applications can become costly, especially if it is your first generative AI initiative. Learn how these costs can impact cloud costs. When it comes to cost management in cloud computing, tags and additional metadata can help with reporting, allocation and optimization recommendations. | A poll of IT decision-makers has found that cloud spending is rising, driven by more workloads and ineffective IT architecture planning
Date of avatar: April 8, 2024, 1:16 p.m.
Tags: reduce cloud spend, fiscal year, software development platforms, excessive storage, it leaders, it decision-makers, survey, cloud costs, boomi, integration strategy, cloud infrastructure, exceeding, it operations, cloud architecture integration, modernization initiatives, digital experiences, cloud deployments, forrester, network bandwidth, driving up, cost governance, hybrid work, budgets
Content: According to a survey conducted by Forrester on behalf of Boomi, IT leaders are concerned that their cloud costs will exceed budgets. The survey of 420 IT decision-makers found that 72% of respondents reported exceeding their set cloud budget in the most recent fiscal year. The survey also highlighted areas experiencing an acceleration of cloud deployments, including IT operations, hybrid work, software development platforms, and digital experiences. Excessive storage, overuse of network bandwidth, and a lack of integration strategy were identified as factors driving up cloud costs. The survey also revealed that 41% of respondents admitted they were unable to build cost governance in their cloud infrastructure. The report suggests that cloud architecture integration and modernization initiatives have the potential to transform a company's ability to reduce cloud spend.
Date of avatar: April 4, 2024, 5:19 p.m.
Tags: cloud spend, it leaders, cloud architectures, cost governance, storage, modernization initiatives, cloud deployments, ed macosky, integration strategy, decision-making, boomi, innovation, cloud costs, research, budgets, finops practices, cross-team collaboration, network bandwidth, architecture integration, proactive cost control, data siloing, tracking, cloud cost management, visibility, forrester
Content: New research conducted by Boomi, in collaboration with Forrester, reveals that IT leaders are expecting their cloud costs to exceed their budgets. The study, which surveyed 420 IT decision-makers, found that nearly three-quarters of respondents reported that their company exceeded its cloud budget in the previous fiscal year. Furthermore, IT leaders anticipate that cloud workloads and costs will continue to grow rapidly over the next two years. The survey identified several areas experiencing a surge in cloud deployments, including IT operations, hybrid work, software development platforms, and digital experiences. The increased costs can be attributed to issues such as excessive storage, overconsumption of network bandwidth, and a lack of integration strategy and efficient cloud architectures. Excessive storage was cited as the main driving factor behind rising cloud costs by 52% of respondents, followed by overuse of network bandwidth (42%) and lack of integration (44%). Additionally, 41% of IT decision-makers admitted that they are unable to establish cost governance in their cloud infrastructure. The research highlights the importance of considering both architecture and integration in managing cloud costs. According to Forrester and Boomi, organizations should adopt proactive cost control measures rather than relying on reactive strategies. The report also emphasizes the need for better visibility into cloud costs across various roles within an organization. Cloud architecture integration and modernization initiatives were found to have the potential to transform a company's ability to reduce cloud spend, with 72% of decision-makers recognizing their impact. These initiatives have already led to improved cloud spend governance, more effective cost management, the elimination of redundant data flows, and enhanced app integration efficiency through generative AI. The findings underscore the significance of integration in the cloud cost equation. When systems are disconnected and data is siloed, organizations are unable to gain a comprehensive view of their cloud costs, hindering effective tracking and decision-making. Ed Macosky, Chief Product and Technology Officer at Boomi, believes that the research highlights the need for integration to be a central consideration in cloud cost management. He emphasizes that without proper visibility, organizations are only seeing part of the picture and are unable to make informed decisions. In conclusion, the survey demonstrates the rising cloud costs faced by organizations and the importance of integrating architecture and implementing modernization initiatives to effectively manage these expenses. By doing so, companies can promote cross-team collaboration, enable better FinOps practices, and allocate resources towards innovation.