Enterprises Exceed Cloud Budget by 40%, According to New Survey

Key findings from a recent survey conducted by Pepperdata revealed that companies exceed their cloud budget by 40 percent due to big data applications and workloads.

Medium to bigger companies with more than 5,000 employees spends $500,000 to $10 million on big data analytics. This is not surprising how massive amounts of data are managed and stored in a secure cloud environment.

Pepperdata surveyed 750 senior enterprises IT professionals in different industries to find out about the cloud budget of enterprises. Data-intensive businesses require more storage for managing more workloads such as in the finance and healthcare industries.

Enterprises Exceed Cloud Budget

About one in every 12 companies exceed their cloud budget for improving the ability to analyze and store data. The shift to cloud computing is another factor, as it offers an ability to be flexible for enterprises to save money in the long run.

“Significantly, more than half the companies surveyed indicate lack of control on cloud spend, making optimization and visibility the keys to getting costs under control,” said Pepperdata CEO Ash Munshi.

Munshi also said visibility in the data workloads matter to show and highlight the need to automate the optimization as a way to prevent runaway costs.

Almost 17 percent of the respondents spent between $2 million and $10 million, and only 7.2 percent said they spent more than $10 million for the cloud integration and services.

Normal IT would have insufficient visibility on the cloud performance and lacks tools for optimizing different applications. Therefore, most enterprises have to switch to better technology to handle several types of data in the company.

Other key findings include companies worrying about running data on cloud big data and applications. About 64 percent of the respondents look into cost efficiency, management, and containment of data in the cloud.

Companies are also switching to big data cloud initiative as a move to better optimize current cloud resources. This way, workloads are enhanced, and security is never a problem when it comes to leaking data.

About 29.8 percent of enterprises utilize workload and application performance to monitor the solution, and only 28.1 percent use cloud provider tools. Meanwhile, only 19 percent use manual monitoring or a homegrown solution.

IT respondents also said the applications or workloads that consume the most money is Hive, for about 28.7 percent, and Spark, which is roughly 26.9 percent. Only 16 percent use MapReduce and 10.6 percent use Tez.