IT leaders concerned about cloud costs exceeding budgets

A new study conducted by Forrester and commissioned by Boomi has shed light on a growing concern among IT decision-makers, with a forecast indicating that global public cloud spending could soar to over $1 trillion (£789.1bn) by 2026.

The study, which surveyed 420 IT decision-makers, revealed a widespread apprehension regarding the trajectory of cloud workloads and associated costs in the coming years. 

A staggering 72% of respondents reported that their organisations exceeded their designated cloud budgets in the previous fiscal year, highlighting the urgency of addressing burgeoning cloud expenditures.

Some areas experiencing accelerated cloud deployments include applications and workloads in IT operations, hybrid work arrangements, software development platforms, and digital experiences.

Despite the benefits of cloud adoption, persistent issues such as excessive storage utilisation, and network bandwidth consumption, contribute to escalating costs. Additionally, a lack of integration strategy and efficient cloud architectures exacerbates the financial strain on organisations.

Over half of the surveyed IT decision-makers attribute rising cloud costs to excessive storage usage, while others point to network bandwidth overuse and integration deficiencies. Concerningly, 41% admit to struggling with implementing cost governance within their cloud infrastructure.

Recognising the role of integration and modernisation in managing cloud costs, the study emphasises the importance of proactive measures to rein in expenditure. Boomi and Forrester advocate for a holistic approach that encompasses architecture, integration, and FinOps practices to optimise cloud spend and drive innovation.

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The report underscores the potential of cloud architecture integration and modernsation initiatives, with 72% of decision-makers acknowledging their capacity to enhance cost governance and promote cross-team collaboration. 

By leveraging generative AI and streamlining app integration processes, organisations can streamline operations and allocate resources more efficiently.

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