Using Cloud Spend Data to Support Cloud Strategies
Business Management Review |
Flexera Report is showing the path towards strategies of using cloud spend data.
FREMONT, CA: The eleventh annual Flexera 2022 State of the Cloud Report explicitly shows the growing use of the public cloud for businesses of all kinds, with public cloud spending now accounting for a considerable portion of IT budgets. Wasted cloud spending is a major concern with respondents estimating that their companies waste 32 percent of their cloud budgets. Cloud spending and usage data can be used by procurement professionals with contract negotiation knowledge to optimise contracts with cloud providers. This is a great opportunity for companies that use SAM, vendor management, and FinOps teams to manage cloud costs. This year, 17 percent of SAM and vendor management teams optimised cloud spending, compared to only 7 percent the year before.
The Senior Director of Cloud Marketing Strategy at Flexera stated that the organizations must have the cloud play a substantial role in their strategy to continue their pace of digital transformation. The cloud enables businesses to scale, become more agile, boost revenue, and achieve their objectives. The company has witnessed the usage of the cloud grow steadfastly over the last few years, with the pandemic providing a significant boost. However, new trends are also emerging in the post-pandemic world.
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The report highlights that FinOps is becoming more important as cloud prices rise and waste levels remain high. Cost-cutting is a priority for several positions, including IT/Ops, cloud centres of excellence, and FinOps teams. Cloud spending is currently 13 percent over budget, with cloud spending expected to climb by 29 percent next year.
In numerous cases, Microsoft Azure utilisation equalled or exceeded that of Amazon Web Services in the 2022 poll. Azure surpassed AWS in terms of the percentage of businesses who use it (80 percent of Azure vs. 77 percent of AWS) and the number of virtual machines (VMs) that businesses are running: On Azure, 71 percent of businesses run more than 51 virtual machines, compared to 69 percent on AWS. Third-party tools that aid in areas like or chestration and container management appear to be losing momentum to cloud providers' proprietary toolset. The most extensively used configuration tools, for example, are AWS Cloud Formation templates (50 percent) and Azure Resource Manager templates (48 percent).
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