The trend: Cloud migration has become an essential part of digital transformations for enterprises. But for some, spending has gotten out of control, prompting demand for more effective cost-control strategies.
The road less taken: Although moving from on-premises data centers to public cloud providers can help companies effectively harness AI, ML, and big data analytics tools, it’s a false assumption that immediate cost savings will materialize—Dropbox saved $74.6 million by pulling its data from Amazon Web Services (AWS) to its own infrastructure, per Data Center Knowledge.
And over 75% of companies use more than one cloud provider, per Insider. That can help cut costs if businesses get more competitive rates for specific services, but it can also exacerbate the spending problem: Home Depot shaved $30 million off of its cloud costs by solely relying on a committed-use plan from Google Cloud as opposed to several providers, per Insider.
How we got here: Because many enterprises lack cloud management expertise, cloud spending can easily spiral out of control. And the more complex cloud computing applications become, the harder it is to decipher providers’ billing statements.
What’s next? With AI systems becoming more elaborate and big data only getting bigger, cloud computing isn’t going anywhere. While some capable outfits might have the resources to develop in-house infrastructure, a majority of businesses will have to find better cloud management solutions.