Wanclouds Releases its 2H 2022 Cloud Cost and Optimization Outlook
Published on September 22, 2022
3 min read
IT teams are tired of being helpless against hidden charges and unable to track costs across multi-cloud environments efficiently. The threat of a market downturn – and pressure from C-Suites – has kicked them into gear as they seek ways to optimize cloud spending.
81% of IT leaders say their C-Suite has directed them to reduce or take on no additional cloud spending as organizations cut costs amid the market tumult. The finding comes from the 2H 2022 Cloud Cost and Optimization Outlook published today by Wanclouds, a leading multi-cloud SaaS and managed service provider. The report also found that in response to rising inflation and prices, 39% of IT leaders have decided to move or leave some of their significant cloud consumption and high-performance workloads on-premise.
Cloud spending has reached profound new heights in the past two years as organizations scaled their digital transformations. Furthermore, costs have multiplied as demand for raw computing power for the cloud has soared and supply has been constrained due to supply chain interruption. However, businesses are now reaching a cloud spending breaking point with worries of an impending recession and are rushing to usher in better cloud cost optimization. To better understand how these IT teams, CIOs, FinOps, and C-Suite’s are addressing increasing cloud costs and looking to optimize their infrastructures, Wanclouds commissioned a survey of more than 500 U.S. IT decision-makers in Q3 of 2022.
According to the outlook's findings, 53% of U.S. IT leaders say they've been hit with more unexpected cloud bills than what they planned for in the first half of the year. The sticker shock has proved to be a persistent concern globally, with 54% of U.S. and UK IT leaders stating the same in Wanclouds’ 2022 Cloud-Native Trends Report released at the beginning of this year. For those asked to cut costs, the vast majority say they now plan to do so by between 26% and 50%. After a momentous period, this suggests enterprises’ soaring cloud spending may be coming to a halt as talks of a looming downturn heat up. It also serves as evidence of the industry’s cost challenges with utilizing hybrid and multi-cloud infrastructure that is more complex and difficult to track costs for.
For instance, as containers become increasingly utilized as the go-to platform for hybrid cloud strategies, 70% of those implementing Kubernetes say it has increased their overall cloud spending. On account of this growing frustration with excessive cloud spending, IT teams and C-Suites are targeting ways of cutting cloud costs and finding cheaper solutions. Nearly 29% of IT leaders surveyed said they have switched public cloud providers due to high prices in the first half of 2022, and an additional 22% are considering switching providers as an option to reduce spending. Meanwhile, nearly a quarter say they have shifted to more of a multi-cloud strategy to optimize costs for each application or service.
“IT teams are tired of being helpless against hidden charges and unable to track costs across multi-cloud environments efficiently,” said Faiz Khan, CEO, Wanclouds. “The threat of a market downturn – and pressure from C-Suites – has kicked them into gear as they seek ways to optimize cloud spending. Unfortunately, cloud platforms have not made it easy to track cloud costs, especially as IT teams take on cloud-native initiatives, but our findings illustrate IT leaders are now actively taking action to curb cloud spending.”
Other top findings from Wanclouds’ 2022 Cloud Cost and Optimization Outlook include:
- Only 43% of U.S. IT leaders say they have visibility today into costs and consumption across their cloud environment.
- However, 32% report that it has been six months or more since their last cloud spend analysis.
- Nearly a quarter (24%) have brought in experts in “FinOps’ or cloud finance management to assist with revising their organization’s cloud strategy.
To view and download Wanclouds’ 2022 Cloud Cost and Optimization Outlook, click here. Organizations looking for support with multi-cloud spend visibility, cost tracking analytics and real-time saving recommendations can learn more about Wanclouds Cost Optimization as a service (COaaS) here.
Wanclouds is a leading multi-cloud SaaS, solution, and managed service provider. It helps enterprises with cloud deployments, migrations, and protecting their cloud infrastructure in time and cost-efficient ways. The company’s cloud Migration as a Service (MaaS) and Disaster Recovery as a Service (DRaaS) reduce the financial investment and remove the technical complexities that halt or delay businesses from migrating on-premise to the cloud, moving across clouds, or setting up backup and restore protection. Its SaaS-based automation suite VPC+ provides a single pane of glass for managing and protecting multi-cloud environments through a centralized cross-cloud solution. Wanclouds is an AWS, Google Cloud, IBM Cloud partner and is headquartered in Santa Clara, CA. For more information, visit: https://www.wanclouds.net/