Managing cloud spend is a top challenge for all organizations, dethroning security as the number one challenge for the first time in a decade.
The shift in challenges is a subtle nod to organizations becoming more comfortable with cloud security, plus greater spending due to increased use of cloud services, according to Flexera’s 2023 State of the Cloud Report.
Economic uncertainty, a factor of disruption more recently being implemented in these reports, did not seem to sway organizations’ expected cloud usage and spending — almost half (45%) of organizations reported their cloud usage and spending was about the same as planned.
Yet, organizations continue to struggle to control growing cloud spend. There was a significant 39% increase year-over-year of cloud spend over budget between 2022 and 2023 for organizations — plus, over a quarter (28%) of cloud spend was self-reportedly wasted.
A majority of heavy cloud users (71%) will prioritize cloud spend in 2023. Measuring cloud spend alone is a top metric for organizations assessing its progress against cloud goals, with 60% reporting cost efficiency a top assessment metric. Other leading metrics organizations will focus on include delivery speed of new products or services and the number or workloads migrated.
Organizations seizing cloud initiatives will be strategic if peering through a cost-conscious lens, according to Flexera, and will be better positioned for success in their cloud adopting agenda by “prioritizing every dollar of spend."
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