Part 2: Managing and Understanding On-Prem & Cloud Spend

June 20, 2018
Lawrence Schwartz

Author

Lawrence Schwartz

CMO at SoftwareONE

Last month we unveiled our research study, “Managing and Understanding On-Premises and Cloud Spend,” where more than 300 C-level and IT decision makers unveiled their organization’s strategy and thoughts on their current and future state in regards to the cloud. The survey covered four main topic areas, including:

  • The myth of the cloud
  • Cloud management remains a priority and a challenge
  • On-premises is here to stay
  • The hybrid approach

We discussed the first two points in our last blog, and we’ll be looking at both on-premises and the hybrid approach this week.

The survey topic was obviously top of mind for many of you, and was covered in various publications over the last few weeks, including:

Uncertainty around the cost of cloud remains a major sticking point for most organizations. Our whitepaper, “Manage Budget and Spend in a Multi-Cloud Environment,” takes a look at how difficult it is to plan and manage for cloud spend, citing key factors such as:

  • Public cloud bills are, on average, 2-3X higher than what is budgeted
  • 75% of cloud use was untracked and unapproved in 2017
  • 72% of organizations do not have the information to predict future cloud usage

This state of unpredictability is why 45% of organization are either investing more in on-premises solutions over the next 12 months, or maintaining their current level of on-premises investment.

 

software one state of the cloud

Further, over half of our respondents feel that a hybrid approach is the most sensible strategy – helping them to maintain their current on-premises investments while slowly introducing a more cloud-centric strategy for the future.

 

on prem cloud spend hybrid

To learn more or read the full report please visit here. We look forward to your further feedback and thoughts on this top of mind study.

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