Cloud technology has cut a wide path through the business world over the last decade. With adoption rates rising at a rapid clip, cloud use is becoming ever-present — almost a necessity.
Statistics illustrate the trend. According to Gartner, more than half of enterprise IT spending in key market segments will shift to the public cloud by 2025. Meaning enterprise IT spending on public cloud will finally surpass traditional IT spending in some corners of the market soon.
While cloud use is surging, some issues have quickly become top cloud challenges. Runaway cloud costs are at the top of that list.
Cloud Costs Draw Widespread Concern
In the 2023 Flexera State of Cloud report, respondents estimated that their organizations waste 28% of their annual public cloud spend. Another clear indicator of the growing concern over cloud costs, more than 82% of respondents listed managing cloud spend as their top cloud challenge, prioritizing it above security for the first time in a decade.
What’s Causing Cloud Waste?
Many studies have explored factors contributing to excessive cloud spending, with results ranging from lack of visibility into cloud costs to complex pricing. In the HashiCorp State of Cloud Strategy Survey 2022, 66% of respondents attributed cloud waste to a combination of idle or underused resources, while 59% cited overprovisioned resources and 47% highlighted a lack of necessary skills.
In another study, Anodot’s 2022 State of Cloud Cost Report, more than half of respondents cited their biggest challenge in controlling cloud spend as a lack of insight into cloud usage and associated costs. Other major culprits included complex cloud pricing and complex multi-cloud settings.
In another revealing finding, more than a quarter of respondents take weeks or months to detect an increase in cloud costs, a statistic that hasn’t changed since 2021, according to the Anodot report.
How Can Organizations Rein in Cloud Spending?
As companies wrestle with controlling cloud costs, industry experts note that partnering with a solid managed service provider can go a long way toward ensuring better management of cloud use and spending. For one thing, a quality provider will give IT leaders a clear view into their cloud spending, which can help lower costs. Quality providers also offer fair pricing structures, no hidden fees, and experienced and knowledgeable cloud experts to successfully guide the cloud journey.
A Cost-Efficient, Secure and Transparent Cloud Experience with LightEdge
Navigating the complexities of cloud pricing and overseeing multi-cloud settings is a difficult task. Gain the simplicity and transparency that comes with LightEdge Cloud. Our platform provides clients with visibility into their environments and easily manage their resources.
For nearly three decades, LightEdge has been the leader in compliant cloud and colocation services delivered locally with 24/7 support from real people. With a compliance certification record second to none and the most scalable, redundant, and secure network in the U.S., LightEdge is known for its above-and-beyond security and compliance.
Offering private, hybrid and multi-cloud managed services, the LightEdge Cloud solution combines the scalability and efficiency of the public cloud with enhanced security typically associated with the private cloud. With LightEdge, customers avoid overspending on compute and storage costs — common to the one-size-fits-all mentality of hyperscale cloud providers — and get defined products built to match their business needs.