European enterprises are spending £29.48 million on cloud services, and 42 per cent say the cloud has been critical to digital innovation initiatives in the last two years, but a big chunk of this cash is wasted.
According to the 2019, European Insight Intelligent Technology Index 30 percent (£8.8 million) of this cloud spend is on services that are not used.
Respondents identified the following top three challenges for managing cloud spend: determining best-fit workloads for public, private and hybrid cloud (44 percent ); planning and allocating budget for cloud consumption (39 percent ); and lack of visibility of used services at the cost centre, workload and application level (36 percent ). Based on these numbers, wasted spending is likely to be even higher, as organisations struggle to optimise their cloud investment.
Insight EMEA President Wolfgang Ebermann said: “Cloud continues to be a mission-critical enabler for agile and digital business, but it needs the right approach. A robust operating model that provides oversight and continual optimisation of cloud environments is critical. Under-utilised technology has been a problem for decades, so it’s not surprising to see the problem spread to the cloud. However, by putting the right controls in place, organisations can optimise cloud consumption and ensure they only pay for services they are using.”
The ITI research highlighted that investment in digital innovation is increasing. Enterprises invested an average of £32.23 million on digital innovation in the last 24 months, and plan to invest £42.12 million in the next two years. More than 70 percent of respondents stating that it will be very or extremely important for corporate IT to provide consumer-like experiences, it’s clear that there will be a focus on empowering employees with technology.
More than 74 percent of CIOs said their organisations link the provision of modern technology to attracting and retaining talent. The report also indicates that organisations are, and will continue to, invest in the intelligent use of data. 46 percent of respondents stated that the use of advanced analytics has been critical to digital innovation over the last two years.
This year’s report does highlight the need for caution around digital innovation projects. 66 percent of respondents said they feel that IT is being set up to fail as it takes on more responsibility for transformational projects, while still keeping core systems running effectively – compared to 57 percent in 2018. Unless there is a change in corporate culture, with responsibility for digital innovation shared across the business, this trend is likely to increase.
Pressure on IT teams doesn’t only come from the need to deliver digital projects, but from keeping costs and security under control. Asked to choose their top three challenges around digital innovation, 46 per cent of respondents chose monthly costs (e.g. operational expenditure), with 44 percent selecting upfront costs (e.g. capital expenditure), and 38 percent choosing an insufficient budget.
Similarly, 60 percent of respondents said security is the main factor that keeps them up at night, and 68 percent say it is the biggest challenge in globally managing IT operations.
