New Survey Reveals One Third of Businesses are Exceeding Their Cloud Budgets by as Much as 40 Percent
Enterprises Should Consider Optimization to Contain Costs and Improve Performance
Pepperdata, the leader in Analytics Stack Performance, announced the results of a new survey of 750 senior enterprise IT professionals in industries ranging from finance to healthcare, automotive, advertising and other data-intensive businesses. Key findings include that more than one-third of businesses have cloud budget overruns of up to 40 percent, and one in 12 companies exceed this number.
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The survey was conducted to better understand how organizations run their big data applications and workloads in the cloud. Companies polled ranged in size from 500 to more than 5000 employees, and spent from $500,000 to more than $10M on big data analytics.
The shift to cloud computing is solidly underway. While the cloud offers both the benefits of a pay-as-you go model and the ability to be elastic on demand, enterprises almost universally see a rise in costs. This is because IT often lacks sufficient visibility into cloud performance and does not have the tools to optimize applications.
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Key findings from the survey include:
- For 64% of respondents, “cost management and containment” is their biggest concern with running cloud big data technologies and applications.
- A majority of respondents said the desire to “better optimize current cloud resources” was their highest priority big data cloud initiative.
- In 2020, for one in three respondents, cloud spend was projected to be over budget by between 20 percent and 40 percent.
- One in 12 respondents said their cloud spend was expected to be over budget by more than 40 percent.
“This research shows us the importance of visibility into big data workloads. It also highlights the need for automated optimization as a means to control runaway costs,” said Ash Munshi, CEO, Pepperdata. “Significantly more than half the companies surveyed indicate lack of control on cloud spend, making optimization and visibility the keys to getting costs under control.”
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