Managing cloud spending has emerged as a significant challenge for organizations, even surpassing security concerns, new research has claimed.
Flexera's 2024 State of the Cloud Report sheds light on the current state of the public, private, and multi-cloud market, which has been the subject of intense scrutiny in recent months, including across the EU.
The study found that for the second year in a row, managing cloud spending has been identified as the top challenge, with nearly a third (29%) of respondents admitting to spending over $12 million annually on cloud services.
Companies are worried about uncontrollable cloud spend
The survey, which aligns with other similar research, found that more businesses are adopting multi-cloud landscapes. As many as nine in 10 (89%) now do so.
Speaking about the ever-growing importance of cloud adoption, Brian Adler, Senior Director of Cloud Market Strategy at Flexera, said: “The shift toward hybrid and multi-cloud environments underscores the importance of comprehensive cost management.”
AWS continues to lead the way as a firm favorite among enterprises, with Azure coming in a very close second place. Both companies have been subject to discussions across the UK and Europe for their market dominance. Google Cloud attracted around half as many users as these two individually, while Oracle Cloud Infrastructure, IBM and Alibaba Cloud usage looks to have dropped.
The report also revealed the influence that SMBs can have on the market – Flexera notes that these smaller businesses are among the highest cloud adopters, however fewer SMBs adopted cloud this year compared with last, highlighting the stresses of tough economic conditions on their decisions.
Besides addressing the growing costs associated with cloud adoption, the study also confirms suspicions that the hyperscalers continue to dominate the market, which poses a threat to competition and, subsequently, costs.
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