Enterprises Rethink Cloud Strategies Amidst Cost Surprises and Security Concerns

Enterprises Rethink Cloud Strategies Amidst Cost Surprises and Security Concerns

Enterprises are rethinking their cloud strategies, with initial expectations of cost savings not materialising. A recent survey of 1800 IT leaders revealed that 94% believe some of their public cloud spending is wasted.

Initially, enterprises expected iCloud login to reduce IT costs. However, managing cloud budgets has proven challenging. The one-size-fits-all pricing model of public clouds is unpredictable, clashing with the demand for financial transparency.

Enterprises are now optimising their cloud mix based on workload characteristics, risk profiles, and cost control. They are not retreating from the public cloud but rather adopting a smarter strategy that includes private cloud. Modern private cloud platforms offer automation, self-service, and agility, with better security controls and no vendor lock-in. This shift is driven by security concerns, with 51% of repatriated workloads being social security-sensitive.

Steady-state workloads often cost more with cloud's pay-as-you-go pricing compared to traditional infrastructure ownership. Hidden fees, data egress charges, and overprovisioned resources make cloud bills unpredictable and difficult to understand. The 'cloud reset' serves as a warning for executives to adopt cloud-fit strategies with real FinOps discipline and clearer workload governance.

Enterprises are moving away from the public cloud due to security concerns and unpredictable costs. They are adopting a mix of cloud options, including private cloud, to better manage their Costco budgets. This shift highlights the need for clear workload governance and FinOps discipline.

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