IT Leaders Report High ROI on Cloud Despite Avoidable Deployment Costs
July 21, 2021

Grant Duxbury
Aptum

Share this

An Aptum survey of 400 senior IT decision-makers across the UK, US and Canada to gauge the impact of cloud adoption reflects a disparity between the expected and actual costs of implementation for organizations. The third installment of Aptum's four-part Cloud Impact Study, A Bright Forecast on Cloud, presents data showing the benefits organizations gain from cloud computing, as well as mistakes to avoid during migration.

As organizations migrate workloads to different cloud platforms, they often run into unexpected challenges due to a lack of proactive planning. Here are a few key findings from Part 3 of the Cloud Impact Study:

80% of respondents unlock greater business profitability through cloud services

Cloud computing yields quantifiable gains for organizations, primarily through increased scalability and application integration, the report states. Delivering services through the cloud can make organizations more agile — increasing revenue by accelerating new product deployment while shrinking time to market.

Organizations also see profits through greater efficiencies, with 78% of respondents attributing this increase to cloud adoption. Cloud computing payment structures eliminate the expense of unnecessary hardware, and cloud-based automation frees up time for staff.

80% of respondents believe cloud computing is essential for the financial security of their organization

Organizations operating on the cloud utilize expenditure models and scalable infrastructure on demand, so they only pay for what they need, when they need it. They aren't populating their balance sheets with financial liabilities, altogether eliminating that security risk.

57% of organizations encounter unexpected costs from cloud deployment

Moving to the cloud isn't as simple as moving data from one data center to another. It's no longer about discrete steps, but rather a journey. There are some common mistakes seen throughout this journey that lead to the unexpected costs organizations report, such as a lack of understanding around the need for hybrid models to accommodate data not suited to the cloud. Another is not leveraging a consumption-based model approach that breaks down applications and services as needed.

As IT environments become more complex, it becomes harder to keep abreast of cloud spending and total overrun. Without clear oversight, cloud sprawl is unavoidable. A lack of visibility and governance can contribute significantly to the challenges of excessive cloud spend.

35% of respondents also report wasting IT spend due to inefficient use of cloud platforms. With the average business spending over a third (36%) of its technology budget on cloud computing, intelligent planning and knowledge of best practices are critical to avoid unexpected costs and delays in implementation.

Rather than taking a "cloud-first" approach, companies should move forward with a strategy-first philosophy. Start migrations by thinking about how the cloud will impact operations and how to best integrate it with other technologies to leverage its power. If businesses take this approach, they should come out with a cloud roadmap that is aligned with their desired objectives.

Unlocking the True Value of the Cloud

Inappropriate workload migration due to poor planning and lack of visibility is prevalent, costly and can impede the entire deployment process. Applications in unsuitable environments can also lead to unplanned hybrid cloud implementations that create additional complexities around visibility and security.

For businesses to understand the true total cost of ownership and deliver maximum value from their cloud investments, it's essential to consider all components of cloud architectures. Businesses must ensure cloud cost management is a company-wide initiative, with compliance, finance and other key stakeholders aware of cloud distributions. They also need to ensure IT teams have access to the expertise and tools to control it effectively. Successful cloud migration requires buy in not just from IT or departments — but from senior leadership.

However, as the report reveals, most organizations need help unlocking the true value of the cloud. By working with a managed service provider with a strong heritage of traditional infrastructure management, cloud consulting and IT transformational expertise, organizations can build robust, high-performance hybrid cloud strategies that maximize business outcomes to drive business transformation and success.

Grant Duxbury is Director, Pre-Sales Engineering, at Aptum
Share this

The Latest

July 28, 2021

Business leaders are in the unique position of having immediate access to huge amounts of data in today's smartphone and laptop-dominated world. They are also under pressure to make data-driven decisions and mobile business intelligence can one of the most valuable decision making tools in their arsenal ...

July 27, 2021

Unlike some AI initiatives, AIOps doesn't always necessitate the use of a data scientist, so don't let hiring expenses put your AIOps initiatives on hold. It is always nice to have IT team members with AI skills, but this becomes less critical as more intelligent solutions come into prominence that offer AIOps features out of the box, a readily deployable option for IT ...

July 26, 2021

AIOps is rapidly becoming a de-facto option for enterprises' IT strategies, with nearly immeasurable benefits to be provided. However, AIOps is still a relatively new discipline and misconceptions surrounding the technology's capabilities and uses have caused bottlenecks and roadblocks in its widespread adoption. So, what should organizations expect from AIOps? How can organizations that want to digitally transform their IT pursue AIOps for maximum benefit? ...

July 22, 2021

In response to the global pandemic, companies have given their workforce the tools they need to work remote. And research shows it has increased their engagement and productivity. But these gains are on the brink of being wiped out. According to a new study from Citrix Systems, Inc., employees feel they've been given too many tools and not enough efficient ways to execute. And it's hindering their ability to get things done ...

July 21, 2021

The third installment of Aptum's four-part Cloud Impact Study, A Bright Forecast on Cloud, presents data showing the benefits organizations gain from cloud computing, as well as mistakes to avoid during migration. As organizations migrate workloads to different cloud platforms, they often run into unexpected challenges due to a lack of proactive planning. Here are a few key findings from Part 3 of the Cloud Impact Study ...

July 20, 2021

Currently, (and most likely well into the future) the overwhelming majority of organizations still need to monitor and maintain enterprise applications. Moreover, where these are complex systems developed, debugged and refined over years, often decades, around a business's core processes, there can also be very strong practical arguments for viewing them as classics. They can offer a valuable legacy, one best left where it is, doing what it does, how it always has done ...

July 19, 2021

Anti-patterns involve realizing a problem and implementing a non-optimal solution that is broadly embraced as the go-to method for solving that problem. This solution sounds good in theory, but for one reason or another it is not the best means of solving the problem. Anti-patterns are common across IT as well, especially around application monitoring and observability. One that is particularly prevalent is in response to the increasing complexity of cloud-native infrastructure and applications ...

July 15, 2021

The introduction of the latest technology — such as AI and machine learning — can be seen as a way for organizations to accelerate growth, increase efficiency, and improve customer service. However, the truth is that the technology alone will do little to deliver on these business outcomes. AI for IT operations (AIOps) is one area where the application of technology, if not matched with organizational maturity readiness, will fail to deliver all the promised benefits ...

July 14, 2021

SREs that fail to deliver customer value run the risk of being stuck in an operational toil rut. Conversely, businesses failing to recognize the bi-modal nature and importance of SRE activities run the risk of losing talented employees and their competitive edge ...

July 13, 2021

As part of digital transformation initiatives, IT teams are quickly adopting AIOps solutions to accommodate a new multifaceted infrastructure. However, there are still several roadblocks IT leaders must overcome when adopting AIOps — namely, understanding how to showcase ROI and changing their team's cultural mindset around adopting a new strategy ...