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The 3 Biggest Hybrid Cloud Potholes on the Road to Digital Transformation

Grant Ho
CloudBolt

IT leaders across the board agree that hybrid cloud is essential for digital transformation (94%), according to the The Truth About Hybrid Cloud and Digital Transformation, a report from CloudBolt and social research platform Pulse to survey IT executives on hybrid cloud's role in digital transformation. The March 2021 survey received over one hundred responses from executives at enterprises with over 1,000 employees from the Americas, EMEA, and APAC.

The survey also confirmed the vital role played by automation, self-service IT, and continuous optimization of cloud spend on the digital transformation journey — and how most of these organizations are experiencing significant stumbling blocks in these very areas.

It appears that a new cloud order is emerging and suddenly, what has been good enough no longer is. Specifically:

1. You'll Never Have "Self-Service IT" Without Simplicity

Self-service IT aims to empower DevOps and other enterprise users, allowing them to access the resources they need, when they need them. At the same time, it should enable IT admins to maintain control over security, permissions, and configurations. When properly implemented, self-service IT can prevent the growth of "shadow IT," that is, developers going around IT and procuring their own resources, such as spinning up public cloud services with a credit card. According to Gartner, shadow IT accounts for 30-40% of enterprise IT budgets.

But what good is self-service if you can't actually serve yourself? Sadly, that seems to be the case for the majority of organizations: 56% of survey respondents said their self-service IT is too complicated and requires users to have expertise in cloud and infrastructure tools.

Most end users won't know how to choose AWS plan specifications, select target cloud deployment zones, or configure security groups. But if they can't do these things themselves, it isn't really self-service.

IT leaders realize the importance of self-service and they also understand that their efforts today fall short. In fact, 71% said they want their enterprise's self-service IT system to function like an "easy button," where users don't need to ask for assistance or possess esoteric knowledge of cloud-native tools to get what they want. The new cloud order demands true simplicity to fuel true self-service and transformation.

2. You'll Never Truly Automate What Isn't Intelligently Integrated

Hybrid cloud management has grown too complicated for the outdated, manual processes many enterprises still rely on. Enabling policy-driven workflows and intelligent provisioning requires automation. Predictably, enterprises are investing in a growing number of automation tools. But these tools need to be integrated with existing infrastructure — and with each other — and that's where things get difficult.

Three-quarters (76%) of respondents said they still rely on custom-coding for a quarter or more of all their integrations — a long, arduous process that often requires expensive third-party contractors and creates more and more technical debt. It must be updated continually to accommodate new tools and technologies as well as meet evolving compliance and security standards. And when one thing changes in this fragile web of interconnections, it causes a ripple effect of problems throughout.

For this reason, nearly two-thirds (62%) of IT leaders surveyed expressed the desire for integration capabilities that could help them avoid the need for costly, resource-intensive custom-coding projects. Companies are increasingly demanding a smarter "integrate once/integrate everywhere" approach to integration as opposed to traditional methods that haven't changed much in more than 30 years.

3. You Can't Optimize What You Can't Visualize

Optimizing cloud deployments and controlling costs requires both visibility into cloud infrastructure and ways to address issues as they arise. The bad news is, 78% of respondents said they lacked the visibility necessary to optimize cloud deployments, while 54% said they didn't have automated methods of optimizing cloud costs.

Lack of a single source of truth when it comes to hybrid cloud infrastructure is one issue. Many organizations rely on the visibility tools native to the different clouds they use. But using multiple tools in this way means that a comprehensive view of the whole must be cobbled together, if it can be produced at all.

The challenges here are particularly acute when it comes to cost control. Exporting cloud bills to Excel, analyzing gigabytes of raw data line by line, and chasing down engineers to turn off unused cloud resources is simply ineffective.

IT leaders know these archaic and inefficient methods cost them money. And that's why 56% of respondents said they want automated methods for cost optimization with the ability to continuously notify stakeholders across the organization of cost overruns.

The New Cloud Order

The report reveals that too many enterprises are stuck using old cloud management approaches that hinder their digital transformation goals.

At the same time, IT leaders recognize the problem and see the path forward. They understand the need to make self-service IT easy for end users, to accelerate automation with faster, simpler integrations, and to reduce costs by connecting visibility and insight to immediate action. And there's even more good news: There are now cloud management tools and technologies that make this possible.

Self-service IT is now possible thanks to smarter approaches that simplify the process. Users no longer need to possess specialized skills or knowledge to access self-service resources. By abstracting away the underlying processes of complex technologies, self-service IT can finally be that "easy button" users want.

Custom-coding can now be largely eliminated and replaced by codeless, software-defined integrations. Enterprises can access pre-built integrations for many automation tools via a dynamic abstraction layer. When integrations become simple and mundane, accelerating automation initiatives and enabling a "best-of-breed" approach, enterprises can adopt the tools that best fit their particular needs and deploy them without wasting valuable time.

Finally, it is also possible to manage hybrid cloud infrastructure today through a single panel. This means enterprises can stop relying on native visibility tools and manual processes to analyze costs, identify cost overruns, and expose areas of inefficiency. This comprehensive visibility enables continuous detection and automatic remediation of idle resources in real time, so no one has to run around trying to find the right person to turn things off. It also enables enterprises to implement alert systems that can optimize decision-making processes across the organization by embedding awareness at key points of action.

Future-Proofing Digital Transformation

The report shows that, when it comes to hybrid cloud management and digital transformation, IT leaders are halfway there. They know that the old way of doing things isn't working anymore, and they know what they need to take them to the next level.

The complications and burdens of archaic cloud management will only grow heavier, acting as a constant drag on digital transformation. However, for those who embrace the new cloud order, proactively implement the next generation of cloud management solutions and avoid the three major potholes, their digital transformation journey will fuel a future of growth and opportunity.

Grant Ho is CMO of CloudBolt

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

The 3 Biggest Hybrid Cloud Potholes on the Road to Digital Transformation

Grant Ho
CloudBolt

IT leaders across the board agree that hybrid cloud is essential for digital transformation (94%), according to the The Truth About Hybrid Cloud and Digital Transformation, a report from CloudBolt and social research platform Pulse to survey IT executives on hybrid cloud's role in digital transformation. The March 2021 survey received over one hundred responses from executives at enterprises with over 1,000 employees from the Americas, EMEA, and APAC.

The survey also confirmed the vital role played by automation, self-service IT, and continuous optimization of cloud spend on the digital transformation journey — and how most of these organizations are experiencing significant stumbling blocks in these very areas.

It appears that a new cloud order is emerging and suddenly, what has been good enough no longer is. Specifically:

1. You'll Never Have "Self-Service IT" Without Simplicity

Self-service IT aims to empower DevOps and other enterprise users, allowing them to access the resources they need, when they need them. At the same time, it should enable IT admins to maintain control over security, permissions, and configurations. When properly implemented, self-service IT can prevent the growth of "shadow IT," that is, developers going around IT and procuring their own resources, such as spinning up public cloud services with a credit card. According to Gartner, shadow IT accounts for 30-40% of enterprise IT budgets.

But what good is self-service if you can't actually serve yourself? Sadly, that seems to be the case for the majority of organizations: 56% of survey respondents said their self-service IT is too complicated and requires users to have expertise in cloud and infrastructure tools.

Most end users won't know how to choose AWS plan specifications, select target cloud deployment zones, or configure security groups. But if they can't do these things themselves, it isn't really self-service.

IT leaders realize the importance of self-service and they also understand that their efforts today fall short. In fact, 71% said they want their enterprise's self-service IT system to function like an "easy button," where users don't need to ask for assistance or possess esoteric knowledge of cloud-native tools to get what they want. The new cloud order demands true simplicity to fuel true self-service and transformation.

2. You'll Never Truly Automate What Isn't Intelligently Integrated

Hybrid cloud management has grown too complicated for the outdated, manual processes many enterprises still rely on. Enabling policy-driven workflows and intelligent provisioning requires automation. Predictably, enterprises are investing in a growing number of automation tools. But these tools need to be integrated with existing infrastructure — and with each other — and that's where things get difficult.

Three-quarters (76%) of respondents said they still rely on custom-coding for a quarter or more of all their integrations — a long, arduous process that often requires expensive third-party contractors and creates more and more technical debt. It must be updated continually to accommodate new tools and technologies as well as meet evolving compliance and security standards. And when one thing changes in this fragile web of interconnections, it causes a ripple effect of problems throughout.

For this reason, nearly two-thirds (62%) of IT leaders surveyed expressed the desire for integration capabilities that could help them avoid the need for costly, resource-intensive custom-coding projects. Companies are increasingly demanding a smarter "integrate once/integrate everywhere" approach to integration as opposed to traditional methods that haven't changed much in more than 30 years.

3. You Can't Optimize What You Can't Visualize

Optimizing cloud deployments and controlling costs requires both visibility into cloud infrastructure and ways to address issues as they arise. The bad news is, 78% of respondents said they lacked the visibility necessary to optimize cloud deployments, while 54% said they didn't have automated methods of optimizing cloud costs.

Lack of a single source of truth when it comes to hybrid cloud infrastructure is one issue. Many organizations rely on the visibility tools native to the different clouds they use. But using multiple tools in this way means that a comprehensive view of the whole must be cobbled together, if it can be produced at all.

The challenges here are particularly acute when it comes to cost control. Exporting cloud bills to Excel, analyzing gigabytes of raw data line by line, and chasing down engineers to turn off unused cloud resources is simply ineffective.

IT leaders know these archaic and inefficient methods cost them money. And that's why 56% of respondents said they want automated methods for cost optimization with the ability to continuously notify stakeholders across the organization of cost overruns.

The New Cloud Order

The report reveals that too many enterprises are stuck using old cloud management approaches that hinder their digital transformation goals.

At the same time, IT leaders recognize the problem and see the path forward. They understand the need to make self-service IT easy for end users, to accelerate automation with faster, simpler integrations, and to reduce costs by connecting visibility and insight to immediate action. And there's even more good news: There are now cloud management tools and technologies that make this possible.

Self-service IT is now possible thanks to smarter approaches that simplify the process. Users no longer need to possess specialized skills or knowledge to access self-service resources. By abstracting away the underlying processes of complex technologies, self-service IT can finally be that "easy button" users want.

Custom-coding can now be largely eliminated and replaced by codeless, software-defined integrations. Enterprises can access pre-built integrations for many automation tools via a dynamic abstraction layer. When integrations become simple and mundane, accelerating automation initiatives and enabling a "best-of-breed" approach, enterprises can adopt the tools that best fit their particular needs and deploy them without wasting valuable time.

Finally, it is also possible to manage hybrid cloud infrastructure today through a single panel. This means enterprises can stop relying on native visibility tools and manual processes to analyze costs, identify cost overruns, and expose areas of inefficiency. This comprehensive visibility enables continuous detection and automatic remediation of idle resources in real time, so no one has to run around trying to find the right person to turn things off. It also enables enterprises to implement alert systems that can optimize decision-making processes across the organization by embedding awareness at key points of action.

Future-Proofing Digital Transformation

The report shows that, when it comes to hybrid cloud management and digital transformation, IT leaders are halfway there. They know that the old way of doing things isn't working anymore, and they know what they need to take them to the next level.

The complications and burdens of archaic cloud management will only grow heavier, acting as a constant drag on digital transformation. However, for those who embrace the new cloud order, proactively implement the next generation of cloud management solutions and avoid the three major potholes, their digital transformation journey will fuel a future of growth and opportunity.

Grant Ho is CMO of CloudBolt

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...