A new study claims that many companies are overspending on cloud-based services and could lose millions of dollars every year.
Couchbase discovered that an average enterprise spends greater than $33million each year on cloud-based services and spends more than 35% of what is required; many businesses are losing over $8.75 million, which could be saved or put to use elsewhere.
The company spoke with more than 650 senior IT decision-makers about their experiences using cloud-based storage and cloud adoption. It attributed the increase in cost to several different factors.
What’s the reason for spending too much?
This included not having enough information about spending or methods to reduce costs, the need to improve security and compliance functions, and inflexible pricing plans that do not provide businesses with the features they require in a single package.
Additionally, Couchbase pointed the finger at management tools that do not provide the necessary control to store data at the correct location to satisfy regulatory or performance standards and vendor lock-in, making it impossible for enterprises to access the cloud-based infrastructure they desire.
The research also revealed problems in cloud computing generally.
More than one-third (36 percent) of companies said that cloud-based services they had adopted over the past three years have not been up to par, and 56% of respondents said that previous cloud choices had led to digital transformation projects becoming more challenging in 2021 and 48% more costly.
Enterprises are fighting against the limitations of their services, as per Couchbase.
Most of the time, 61% of businesses have had to restrain their digital transformation goals because of the difficulties with cloud-based services. However, 58% of companies choose cloud-based services that don’t offer the capability to grow the business to accommodate demand.
If asked to name their top concerns about the latest cloud infrastructure, data security was a top concern for 43% of those who responded, followed by managing cloud-based data (33 percent) and future-proofing to be able to meet the needs of future digital technologies (31 percent) While 30% of respondents are worried about ensuring that costs are kept under control shortly.
But, despite these issues, 95% of the enterprises polled said that the shift of infrastructure to the cloud was “inevitable.”
In 2025, companies will have 58 percent of their IT spending hosted in the cloud. They also reported that they are more than halfway (56 percent) toward achieving that goal.