35% Of Cloud Spend Is Wasted

Cloud Pricing

Cloud adoption is showing no signs of slowing down, with users and enterprises rushing to move their data and applications to the cloud. However, major challenges still remain.

Most notably, the issue of how up to 35% of the cloud spend goes wasted.

This has been revealed in a new report from RightScale, a company that specializes in cloud delivery. Conveniently titled the RightScale 2018 State of the Cloud, the report reveals a number of interesting statistics regarding the market.

Statistics like how 26% of enterprises with more than 1,000 employees are spending more than $6 million a year on public cloud.

Better yet, the sector is still growing.

An overwhelming 71% of enterprises said that they will grow public cloud spend by more than 20%, while one in every five of these organizations plan to double public cloud spend.

Multiple clouds are common with these respondent companies, and they are already running applications with 3.1 clouds, and experimenting with 1.7 more.

Speaking of cloud providers, AWS adoption increased from 57% in 2017 to 64% in 2018. Azure saw an uptick from 34% to 45%, while Google Cloud was up 15% to 18%. IBM Cloud also had positive numbers to show in this column, going from 8% to 10%.

Given these increases in spending, it comes as no surprise that optimizing cloud costs is a top initiative for these users.

These companies themselves estimate that they waste around 30% of their cloud spend. However, RightScale reckons that another 5% is wasted on top of that.

And while security is seen as the largest issue among beginners to the cloud, cost becomes a challenge for intermediate and advance users. Needless to say, optimizing cloud costs has now become a top initiative for cloud users in 2018.

Interested in more cloud statistics?

You can take a detailed look at this report right here.