Research shows that organizations are over-spending by over $8.75 million on cloud

cloud spending enterprises

Provider of a modern database for enterprise applications, Couchbase released the results of research about the organizations’ cloud spending. The research shows that factors like inflexible pricing plans, management tools that don’t give the level of control users need, and data not being stored where it needs to be are causing organizations to pay 35% more to their enterprise cloud costs.

$8.75 million of $33 million could be saved

Couchbase states that an organization that spends over $33 million annually on cloud services could have saved or spent $8.75 million elsewhere if the factors that cause overspending could be eliminated. The survey of 650 senior IT decision-makers found:

  • Cloud services are not meeting expectations, and are adding to complication and cost: More than one-third (36%) of enterprises said cloud services adopted in the last three years had not met expectations, while 56% said past cloud decisions had made digital transformation projects more difficult in 2021, and 48% more expensive.
  • Contributors to overspending: The factors adding to costs included not having enough insight into spending or ways to optimize costs; the need to improve security and compliance functionality; inflexible pricing plans that don’t give enterprises what they need in a single package; management tools that don’t give the control needed; data not being stored where needed to meet regulatory or performance requirements; and vendor lock-in, meaning enterprises cannot use the specific cloud infrastructure they want.
  • Enterprises are struggling against service limitations: 61% of enterprises have had to restrict their digital transformation ambitions because of challenges with cloud services; while 58% have chosen cloud services that did not give the ability to scale the business to meet demand.
  • Cloud momentum is unstoppable: 95% of enterprises said that increased movement of infrastructure to the cloud is “inevitable.”

Enterprises are optimistic about the cloud, despite the challenges. Almost every respondent stated that their cloud services are meeting their security, availability, performance, cost-effectiveness, control, scalability, and compliance needs. Organizations also said that 58% of their IT spend is in the public cloud and said that they are currently more than halfway toward that goal. Organizations’ most common concerns around new cloud infrastructure are the security of data (43%), managing data in the cloud (33%), future-proofing to meet future digital needs (31%), and keeping costs under control (%30).