Warning: Cloud Mismanagement Can Lead to Financial Blowout
A recent report by Accenture is raising alarms about the costly consequences of poor cloud management. According to the report, many companies are suffering financial losses due to a lack of visibility and control over their cloud architecture. Poor architectural visibility is leading to a cloud cost blowout, the report warns.
The study, titled “Seeing Through The Clouds: A Global Study of How Cloud Management and Automation Create Business Value”, is based on a survey of 750 IT and business professionals across industries and countries. It found that only one-third of companies are achieving the full value from their cloud investments.
The survey respondents identified a number of challenges in managing their cloud environments. These include a lack of skilled resources, inadequate governance, and complex billing models. More than half of the respondents also reported a lack of cost visibility and unpredictability in their cloud costs.
As per the report, the lack of visibility and control over cloud architecture is leading to cases of ‘cloud sprawl’, where companies are using more cloud resources than necessary. This can result in significant financial losses. In fact, the report highlights that the typical company could lose up to 20% of its cloud investment due to poor cloud management.
Accenture suggests a number of solutions to these challenges. One is the implementation of a ‘cloud center of excellence’ (CCoE), which is a cross-functional team responsible for developing and managing the cloud strategy, governance, and best practices of the organization. The CCoE can help companies optimize their cloud usage and reduce costs.
The report also emphasizes the importance of continuous optimization. This includes regularly reviewing and adjusting cloud usage and costs, and automating wherever possible. Continuous optimization can help companies avoid cloud sprawl and reduce their cloud costs.
Furthermore, the study suggests that companies should invest in cloud management and automation tools. These tools can provide greater visibility and control over cloud resources, helping companies manage their cloud costs more effectively.
In conclusion, while the cloud offers many benefits, companies need to be aware of the potential costs and challenges. By implementing a CCoE, focusing on continuous optimization, and investing in cloud management and automation tools, companies can better manage their cloud environments and avoid the costly consequences of poor cloud management.
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