41 percent of local firms overspend on public cloud resources – Report

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Enterprise cloud computing provider Nutanix released the findings of its first Enterprise Cloud Index survey.

The survey was conducted in mid-2018 by VansonBourne on behalf of Nutanix. As many as 2 300 IT decision makers from a variety of industries and countries were interviewed. IT decision makers in South Africa were interviewed as well.

The survey looked at enterprise plans for adopting private, hybrid and public cloud products. Nutanix does say that for the purposes of this report public cloud describes “the combined use of at least one private cloud and at least one public cloud service, with some degree of integration between the two cloud environments”.

The report found that 87 percent of interviewees said hybrid cloud is the ideal future IT model for their business. In South Africa that figure is as high as 93 percent but only 15 percent of South African IT decision makers have implemented a hybrid cloud solution.

Hybrid cloud solutions are serving the needs of these business better than public cloud with 49 percent of interviewees reporting that the aforementioned solution meets their needs. As relates to public cloud solutions, 37 percent of respondents said that this solution was meeting their needs.

The main reason folks are so hyped on hybrid is its interoperability between cloud types (23 percent cited this as the main benefit) and the ability to move applications back and forth between clouds (16 percent of interviewees cited this as the main benefit) came in a close second.

Security and cost were both out ranked by interoperability and freedom of movement but perhaps they should be top of mind.

Locally speaking 41 percent of organisations using public cloud services overspent their annual budget. That’s slightly higher than the 35 percent average globally.

“It seems cost is still a primary inhibitor and concern locally and South African business appears to be facing significant challenges in keeping cloud spending in check,” country manager for Nutanix Sub-Saharan Africam Paul Ruinaard said in a statement.

“If we drill down into what the findings mean to South Africa in particular, we can surmise that there is a need amongst local organisations to get a better handle on their cloud spend, there is a clear gap for better cloud management and cloud resources and talent still pose a threat to local business,” Ruinaard said.

That mention of talent is an important one because the report found that app developers aren’t consulting IT when deciding where applications could run this is called Shadow IT. As many as 57 percent of respondents internationally said that this was happening and locally, 77 percent of respondents said that this was happening.

The problem with Shadow IT is that it can lead to increased risk, challenges with forecasting and an increased inability to control cloud spend.

“The core problem with shadow IT is that certain teams or departments might use cloud services that aren’t well-suited for their applications. In addition, those services can end up underutilized or abandoned while the company continues to be charged for them,” says Nutanix.

The crux of the report reveals that enterprises are increasingly leaning toward hybrid cloud solutions as they combine the benefits of public and private cloud services.

For more on the Nutanix Cloud Index you can visit this link.


[Image – CC 0 Pixabay]

Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.