Cloud money how to#

Why is this much money being wasted? I have a few observations.įirst and most obvious, finops processes, skills, and tools are not following cloud deployments into enterprises. Also, survey respondents reported that cloud projects come in at an average of 13% over budget.Īlthough there are many reasons for cost overruns, this is egregious. If you do some quick math, this leaves 32% waste in cloud spending. When the survey asked how much of cloud expenditure is efficient, the estimate was 68%.

Instead, a big chunk of cloud investment goes to waste. This latest Flexera survey on the state of cloud computing reveals that companies have a hard time deploying cloud projects that work at their most efficient. However, enterprises waste one-third of today’s cloud computing investments, according to a new survey of more than 750 businesses. Companies don’t have to deal with data center cost allocations, physical equipment costs and deprecation, and enterprise software license costs that keep going up when the service and value of the software keep going down. After all, cloud costs are much easier to predict because of utility-based pricing. I really thought most of the overspending would go away with the rise of cloud computing. Įxtra expenses became more perplexing when enterprises began to leverage cloud computing but the overruns continued. Second, most budget managers and other leaders have a tendency to expect overruns, as there are rarely repercussions for spending more than they planned.

Most choose whatever resources they think they will need with the objective of achieving the best possible outcome.

Cloud money how to#

First, many in IT, including myself until about 20 years ago, don't really understand budgeting or how to predict what things will cost. Typically, there are a few core culprits. Budget overruns for IT projects are more the rule than the exception. IT has a long history of problems with budgets and money.