Companies everywhere are struggling with higher cloud costs than expected

A circle of laptops connected to a cloud symbol.

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Despite most businesses (98%) being happy with the rate of their organization’s cloud transformation, higher-than-expected costs are making some businesses think twice about how they distribute their money.

The news comes from managed services provider Aptum, which has released its annual Cloud Impact Study 2023, based on the opinions of senior IT professionals across large organizations in the US, Canada, and UK.

More than one-third (36%) of the respondents believe that delivering cost predictability is one of the key challenges that faces their organization.

Cloud cost is high, benefits don’t match

The study found that many companies are not getting the benefit of a comprehensive management strategy that they had hoped, having rushed into cloud service adoption as a result of the pandemic which pushed most businesses online.

Aptum is just one of the many sources citing an overwhelming interest in multicloud, placing the figure at 59% for those who prefer to combine public and private cloud services.

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The reasons for diversifying across more than one provider are aplenty, with many businesses hoping to save some costs by cherry-picking just the parts they need from different service providers, however an alarming 73% are still battling with higher-than-expected cloud costs.

Aptum CEO Susan Bowen believes that the importance of embracing digital transformation is understood, but more could be done to mitigate some of the challenges that face businesses.

Bowen explains: “Cloud technology continues to enable agility, scalability, cost savings, and remote work - all essential components for business continuity and growth in turbulent times. But, if not managed effectively with a holistic approach, the benefits of cloud can be missed.”

Increasing ITDM knowledge and understanding, or employing a multicloud specialist provider, is key to improving the cost-benefit ratio, says Aptum, as the period of economic uncertainty continues to plague businesses worldwide.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!