Companies to waste $10bn over 12 months on cloud spending
As more and more firms look to access cloud services in order to digitise their operations, a new report from cloud management expert RightScale has suggested that inefficiencies within this could lead to a significant amount of money being wasted.
It is becoming increasingly imperative and demanding that firms transform in this way in order to remain competitive. However, RightScale estimates that as a result of cloud users not understanding how to minimise costs in this venture, an average of 35% of cloud spending budgets are wasted.
“Cloud providers claim they are getting better at helping companies reduce some of their cloud spending. For example, Amazon Web Services (AWS) recently claimed it saved AWS users $500mn by alerting customers when they were overpaying,” said Kim Weins, VP of Cloud Cost Strategy at RightScale.
“Unfortunately, this is just a drop in the bucket. RightScale has seen that companies waste, on average, 35% of their cloud spend.
“This equates to $6.4bn in annualised wasted cost for AWS alone. For the top three public cloud providers (AWS, Microsoft Azure, and Google Cloud Platform), this represents annualised waste of $10bn.”
RightScale highlights complexities in cloud pricing, a constant change between cloud providers and the decentralised adoption of cloud as three key reasons behind this wasted expenditure.
For more, read the full report from RightScale.