2021 may prove to be a very different year than 2020, with new challenges and opportunities when it comes to cloud computing. For decision-makers, this means a re-evaluation of cloud technology budgets: Tools purchased out of necessity to support a remote workforce might not be the right fit for the future of the organization. How are tech leaders managing cloud spend in 2021?
Pulse surveyed 329 tech leaders to understand:
Data collected from March 5 - April 15, 2021
Respondents: 329 tech leaders
88% of tech leaders allocate more than 10% of their annual recurring revenue (ARR) to annual cloud spending.
And 49% of tech leaders go over budget on cloud spend.
Unexpected spikes in cloud costs occur monthly for most tech leaders (42%).
54% of tech leaders plan on increasing their organization’s cloud spend in the next 12 months.
To control cloud spend, regularly reviewing licensing and pricing (52%) is the top initiative implemented by organizations—followed closely by rightsizing instances (51%), and identifying and consolidating idle resources (49%).
The top challenges with cloud spend management are that organizations lack clear cloud cost governance and optimization (53%) and visibility into service usage (53%).
86% of decision makers estimate that a certain portion of cloud spend is wasted.
Overprovisioned resources (60%) is the top-cited source of wasted cloud spend for the organization.
85% of tech leaders say that IT is the largest stakeholder in cloud cost management.
73% do not use any third-party software to map cloud spend.
Pulse is a social research platform trusted by technology leaders around the world. These leaders rely on the community to make connections, share knowledge, get advice, and stay on top of current trends in the technology space. The questions, polls, and surveys posted in the platform are curated in Pulse's One-Minute White Paper reports, which reflect what technology leaders care about right now—and in the rapidly evolving world of software, real-time data and insights in what matters most.