How To Achieve Greater Agility, Scalability, And Efficiency In Multi-Cloud Environments

Rapid cloud migration and adoption has revolutionized the way businesses operate, empowering them to achieve unprecedented levels of scalability, flexibility, and efficiency.

Moreover, emerging technologies like generative AI and intelligent conversational agents like ChatGPT, designed to simulate human-like conversations leveraging natural language processing (NLP) and artificial intelligence (AI) techniques, as well as machine learning, analytics, and internet of things (IoT), have further amplified the impact of cloud computing.

This transition requires organizations to cultivate a diverse set of skills and embrace a forward-thinking approach to the future of work.

The digital era introduces an intricate paradox for business leaders: the necessity for app-centric innovation through the cloud to distinguish their companies from the competition, contrasted by burgeoning cloud expenses. As companies increasingly embrace multi-cloud platforms for their operations, this tension has amplified.

The rise in cloud costs is putting a strain on IT budgets and making it difficult for organizations to innovate. A recent IDC study found that 45% of organizations believe they are overspending on cloud and data center infrastructure. This is because cloud costs can be difficult to predict and manage.

This topic was address in a recent article published by VMware, “Rising Cloud Costs: The Achilles Heel of App Innovation”.

VMware's recent study disclosed that while 95% of organizations believe multi-cloud structures are vital for business success, 76% of them acknowledge a need to enhance control over their cloud costs. A more detailed investigation of this dynamic is outlined in "The Multi-Cloud Maturity Index Research Report”.

Commissioned by VMware and conducted by the market-research firm Vanson Bourne, "The Multi-Cloud Maturity Index Research Report" offers valuable insights gathered from nearly 6,000 organizations worldwide. The report affirms that "cloud-smart" organizations with more advanced multi-cloud operations experience fewer issues managing their cloud expenses, with only 32% reporting difficulty controlling cloud costs.

The study underscores the mainstreaming of the multi-cloud model over the last two years, highlighted by a remarkable 69% surge in the number of public clouds organizations utilize for their daily operations. In particular, app-development teams have aggressively adopted the multi-cloud approach, with 90% boasting "multi-cloud apps" that have the ability to operate across multiple cloud platforms.

Organizations with multi-cloud apps reported several benefits, including improved time to market, better addressing customer needs, and attracting and retaining top talent. Yet, as businesses increase their cloud-based app innovation investment, the challenge of controlling and managing cloud spending becomes more significant.

As public cloud services continue to grow -Gartner forecasts an 18.5% growth in 2023- controlling cloud costs has become a pressing concern. According to the Multi-Cloud Maturity Index Research Report, 79% of organizations with multi-cloud apps admitting to grappling with higher-than-expected cloud bills.

There is a significant contrast between companies dealing with "cloud chaos" and those that are more mature, cloud-smart organizations. These differences illustrate the potential financial gains companies may be missing compared to their cloud-smart counterparts.

The Merits of a Cloud-Smart Approach

The ultimate goal for multi-cloud organizations is to exploit the cloud's inherent scalability without spiraling into unmanageable spending.?

This perspective is validated by the experiences of organizations such as Japan's Sawai Group Holdings. As part of its digital transformation, Sawai Group implemented VMware Aria to ensure proper cost management and security monitoring.? As a result, they observed a 10% reduction in costs, secure operations, and a projected 26% reduction in future costs.

In the evolving digital landscape, rising cloud costs stand as an essential counterpoint to app innovation. The Multi-Cloud Maturity Index Research Report illuminates the struggle and triumphs organizations experience in their multi-cloud journey. It presents a compelling case for a cloud-smart approach, enabling organizations to optimize the cloud's potential without letting costs spiral out of control. With continued research and the sharing of best practices, businesses can better navigate this crucial intersection of innovation and cost control.

Harold Sinnott