When IT, finance and the C-Suite get in the same room
If you bring IT, Finance, and the C-Suite together in the same room, the conversation tends to be extremely valuable. Unfortunately, the IT and Finance teams are usually asked to do very specific things, but they don't always hear what the CIO is thinking about the bigger picture. The CIO thinks cloud spend can be easily managed but doesn’t always think about the technical pieces that are required to get there. This is why having a cloud maturity assessment is a crucial part of any organization's strategic plan.
To understand why a cloud maturity assessment is important, and why IT, technical services, and the C-Suite need to communicate, you simply have to look at the statistics. In 2019, $14.1 billion of cloud spend will be wasted, and this number will grow as more organizations move their workloads into the cloud. The waste comes from companies not right sizing or right costing properly for their cloud environment.
In addition, according to a 2019 Forbes report, 3,800 data breaches were reported in the first half of the year alone that included 4.1 billion records. Every week there is a fresh report in the news about another big organization that has been hacked or forced to pay the ransomware. Security is a major concern, and the cloud is not immune to hackers. As more people work remotely and rely on cloud services, it's crucial for IT, Finance, and the C-Suite to address these concerns and prevent security problems before they appear.
Many executives think a lack of resources will hamper or slow down their digital transformation, so they delay managing the cloud. Instead, cloud spend grows out of control. Having the right people who can deliver cloud migrations, manage the new environment, and correctly license that environment is a concern for most organizations.
By 2021, 43% of organizations will be mostly in the cloud, and this number will continue to grow over time. As the shift from on-premise to cloud services increases in IT environments, cloud adoption is becoming the norm on a global scale. Ignoring cloud spend management will no longer be an option in the future. This is why having the right governance in place now will make future cloud management easier.