Enterprises currently operating in the cloud have over 35% wasted cloud spend.
Monthly bills keep getting higher and spending on cloud services is not going to slow down any time soon, quite the opposite.
That is why ‘Cloud Cost Optimization’ is once again the top priority for most enterprises.
So why not do something about it?
Flexera published their Flexera 2020 State of the Cloud Report (previously known as RightScale State of the Cloud Report), compiling responses from 750 technology professionals which states that over 93% of those asked say their enterprise uses cloud. For the first time in the history of the report, none of the organizations reported that they lacked cloud plans.
Although cloud certainly has its advantages, increased cloud activity also has a much less reported downside. Unused services and inflating monthly bills are major concerns for enterprises which is why cloud cost management is being prioritized.
While cloud pricing can seem very reasonable at first, the size of the monthly bill ballons as adaption grows and more data moves through cloud services.
Many services are underused and keeping track of what services are in use can be difficult.
Responders to the survey estimated that the amount of wasted cloud spend was about 30% but Flexera, the publishers of the survey, predict that actual waste is 35% or even higher.
Despite that, cloud spend continues to skyrocket. In fact, Flexera expect cloud spend to increase by 47 percent next year.
20% of enterprises surveyed spend more than $12 million a year on public cloud and 74% spend over $1.2 million annually. It is a large increase over last year in which 13% of enterprises reported an annual spend of more than $12 million, and 50% reported yearly spend of more than $1.2 million.
Even though many enterprises are prioritizing cloud cost optimization and have an increased focus on cloud cost management, only a minority of companies have been able to address these issues.
Staying on top of the dynamic changes in cloud costs and services is very complex and really beyond human capability.
Cloud cost optimization with AI
That is why Kostner uses AI and Big Data to offer cloud cost management as a service, giving you actionable solutions to optimize cloud spend.
By using AI, Kostner is able to analyze the millions of possibilities available to find the best possible way to run cloud based on specific needs, keeping costs down in the process.
Managing cloud properly is not only time consuming but keeping up with services, price models, consumption offerings, and licensing options can be extremely challenging.
That is what makes Kostner’s AI a valuable tool for anyone tasked with cloud cost management.
If you and your enterprise are prioritizing cloud cost optimization in 2019, book a meeting with Kostner and get actionable solutions to kick off the new year the right way.
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