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According to a new study by Wanclouds, 81% of IT leaders say their C-suite has instructed them to reduce or not take on additional cloud spend as costs skyrocket and market headwinds worsen. After several years of unimpeded cloud growth, the findings suggest that companies’ rising cloud spending may ease as rumors of an impending downturn mount.
As organizations continue with the digital transformations they started at the start of the pandemic, multicloud adoption is becoming increasingly impractical and costs difficult to manage in hybrid environments.
In addition, a key has been thrown into IT teams’ plans over the past two quarters in the form of the market turmoil. Rising inflation and interest rates, along with fears of a potential recession, are putting increasing financial and operational pressure on organizations. As a result, many companies are rethinking their digital ambitions as cloud spending comes under scrutiny.
Wanclouds’ report, 2H 2022 Cloud Cost and Optimization Outlook, examines this current challenge for IT teams and the financial pressures they face from the C-suite and finops. The report shows IT decision-makers are taking action to keep costs in check, with 39% saying they have decided to move or leave significant cloud consumption and high-performance workloads on-premises, and another 29% saying they are switched to public cloud providers in the first half of 2022 due to high prices.
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Cloud spend visibility and tracking is also challenged by the adoption of hybrid and multicloud infrastructure, which can be more complex to manage. For example, as containers are increasingly used as the go-to platform for hybrid cloud strategies, 70% of those deploying Kubernetes say it has increased their overall cloud spend. In addition, just over 4 in 10 IT leaders say they have visibility into costs and usage across their entire cloud environment today.
Wanclouds commissioned the survey of more than 500 U.S. IT decision makers in the third quarter of 2022.
Read the full report by Wanclouds.
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