Almost two-thirds (59%) of organisations report an increase in cloud spend over the past 12 months, and over a third (37%) believe the cloud has “failed” to live up to its promise of “cost-effectiveness”.
Over 500 industry professionals were surveyed for a report published by cloud services firm Civo. The research found that price increases were not uniform across respondents:
-31% of organisations experienced an increase of up to 10% in cloud spend
-32% saw an increase of between 11% and 25%
-37% reported a rise of over 25%
-32% of smaller organisations with fewer than 50 employees reported monthly cloud bills exceeding $10,000
-Over half (54%) of mid-sized businesses, with between 100-499 employees, reported monthly expenditures ranging from $10,000 to $499,000
The report also found that 37% of organisations are considering a move to alternative infrastructures, with a further 7% actively in the process of “transitioning away from the hyperscalers”.
But 40% of organisations have yet to take any action to manage or reduce their cloud service costs, with billing and service “complexity” blocking moves towards cost reductions.
Mark Boost, CEO of Civo said, “Inflationary pressures and the rush to deploy AI have likely been key external factors in increasing cloud spend over the previous year, but pricing complexity can still increase costs unnecessarily for individual customers.”
The report:
https://www.civo.com/cost-of-cloud-report-2024
