Managing and Understanding
On-Premises and Cloud Spend

Overview

The adoption of cloud technologies has taken off. It is relied on by companies of all sizes and industries - from solo entrepreneurs to global enterprises. But, with the widespread adoption of the cloud comes new IT challenges. Companies are moving past the “low hanging fruit” phase of the cloud, where the easy work has been completed.

SoftwareONE commissioned a survey of 300 C-level and IT decision makers to determine the state of the cloud and where it needs to go next.

Section 1

The myth of the cloud

Myth 1

The cloud is cheaper and easier to manage.

Two of the biggest pain points in managing cloud environments

Two of the biggest pain points in managing cloud environments

Industry breakdown of those concerned about cloud budgets and unpredictable costs

Industry breakdown of those concerned about cloud budgets and unpredictable costs

Top 3 industries

Myth 2

There is still low-hanging fruit in the cloud.

The vast majority of respondents’ organizations have concerns using the cloud

Which of the following are/were the biggest concerns for your organization when using cloud?

Myth 3

All levels of an organization are aligned on cloud usage and challenges.

The C-level and IT decision-maker budget disconnect

Perceived Annual IT Budget

$5.05M IT DECISION-MAKER
$6.3M C-LEVEL

The disconnect continues when looking at the percentage of IT budgets that go toward the cloud

Perceived Average Percentage of IT 
Budget Dedicated to Cloud Services

IT DECISION-MAKER
C-LEVEL

Section 2

Cloud management remains a priority and a challenge

External and third-party cloud management software remains a critical component of most cloud deployments, as navigating everything from pricing models to daily usage monitoring requires technical knowledge and real-world experience.

Rely on external, third-party software solutions to manage cloud deployments.

Prefer to partner with IT vendors to help identify and address their business and IT needs.

Believe that cloud pricing models are more complex than those of on-premises offerings.

On-Premises or Cloud?

What is more complex and time consuming to manage?

Both are equally complex and time-consuming

Cloud service level agreements (SLAs) and subscriptions

Licenses and subscriptions for on-premises software

Neither are very complex and time-consuming

Which pricing models do you find more complex/confusing?

Both are equally complex and confusing

Cloud

Both are equally simple

On-premises

Section 3

On-premises is here to stay

Organizations either investing more in on-premises in the next 12 months or keeping on-premises investments the same.

Organizations that describe their primary approach to IT being in the cloud.

Section 4

The hybrid approach

A majority of companies understand the importance of a hybrid approach to IT

Don’t Just Lift & Shift: Move to the cloud for the right business reasons.

Retire

The hybrid approach is introduced and justified early on in the migration process. Some applications need to be retired due to low utilization across the organization or are part of a decommissioning program. Be proactive on retiring these applications as they could provide significant cost savings for your on-premises environment.

Retain

It does not make sense to move some applications to the cloud due to compatibility, cost and security reasons. The business justification does not exist to migrate these legacy applications to the cloud.

Rehost

Fastest time to value to realize the benefits of the cloud is to take a consumption-based approach. These applications are highly utilized across your organization and are compatible, cost effective and secure in the cloud. A consumption-based shift will guarantee the best utilization from day one.

Replatform, Refactor Rearchitect

Longer-term strategy which requires skills, investment and time to realize the true benefits of the cloud. You will look at the architecture of your applications and see how all aspects of the cloud can be used to finely engineer your on-premises applications to realize the maximum benefits of the cloud.