Multi-Cloud Environments Alter Firms’ Cloud Strategies

By Veritis / Dec 23, 2017

Cloud StrategiesThe widespread presence of cloud computing in today’s IT industry is leading to an increasing trend of adoption of multi-cloud environments by enterprise organizations. IDC, a market intelligence firm, estimates that over three-fifths of organizations across the world will adopt multi-cloud architecture by next year.

According to William Lee, Associate Director for IDC APAC Cloud Services Research Program, “By 2018, at least 40% of IT Spending will be cloud-based reaching over 50% of all IT infrastructure, software, services and technology spending by 2020.”

Factors Influencing Spending on Multi-Cloud

The growing reliance on multi-cloud environments is prompting the IT decision makers across companies to reexamine their cloud strategies. Cost optimization is the primary factor that influences an organization’s spending on the cloud. However, two-fifths of IT leaders are unaware of their companies’ spending on the cloud.

A recent global survey, by a leading company that assists in the transformation of traditional businesses into digital enterprises, found that 45 percent of the respondents consider cost optimization as the prime reason for utilizing services from multiple cloud providers. On similar lines, 44 percent of the respondents are driven by the need to maintain agility in their organizations, while 40 percent are in favor of risk mitigation.

Enterprise Solutions leader Bill Berutti says, “Multi-cloud has truly changed the game: The traditional way of looking at IT infrastructure simply does not work anymore. IT leaders must consider new ways to manage multi-cloud environments to ensure they are getting the expected benefits from public cloud, in terms of cost savings, automated performance optimization, and increased security and governance.”

Alleviating the Challenges

Implementation of security and governance policies, automation, cloud consumption costs and resource utilization optimization are the major challenges associated with the management of multi-cloud environments. With distributed and virtual infrastructure in demand, security remains the focal point of investment for IT decision-makers over the next 2-3 years.

Organizations can move towards the successful management of their multi-cloud environments by taking stock of their cloud assets and gaining a clear picture of their cloud costs. In order to reduce the complexity created by multi-cloud, which in turn is providing a fillip to the business challenges, experts advise IT leaders to adapt their management approach through new technology solutions that leverage AI and machine learning.

The Way Forward

Please contact Veritis at info@veritis.com for more insights and responses to queries on Cloud Strategies.

 



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