Many Organizations Lack Cloud Strategy
May 16, 2016

Eric Senunas
Turbonomic

Share this

While the common assumption is that the cloud represents reduced costs and better application performance, many organizations will fail to realize those benefits, according to research by VMTurbo. A multi-cloud approach, where businesses operate a number of separate private and public clouds, is an essential precursor to a true hybrid cloud. Yet in the survey of 1,368 organizations 57 percent of those surveyed had no multi-cloud strategy at all. Similarly, 35 percent had no private cloud strategy, and 28 percent had no public cloud strategy.

“A lack of cloud strategy doesn’t mean an organization has studied and rejected the idea of the cloud; it means it has given adoption little or no thought at all,” said Charles Crouchman, CTO of VMTurbo. “As organizations make the journey from on-premise IT, to public and private clouds, and finally to multi- and hybrid clouds, it’s essential that they address this. Having a cloud strategy means understanding the precise costs and challenges that the cloud will introduce, knowing how to make the cloud approach work for you, and choosing technologies that will supplement cloud adoption. For instance, by automating workload allocation so that services are always provided with the best performance for the best cost. Without a strategy, organizations will be condemning themselves to higher-than-expected costs, and a cloud that never performs to its full potential.”

Above and beyond this lack of strategy, SMEs in particular were shown to massively underestimate the costs of cloud implementation. While those planning private cloud builds gave an average estimated budget of $148,605, SMEs that have already completed builds revealed an average cost of $898,508: more than six times the estimates.

Other interesting statistics from the survey included:

Adopting cloud is not a quick, simple process: Even for those organizations with a cloud strategy, the majority (60 percent) take over a year to plan and build their multi-cloud infrastructure, with six percent taking over three years. Private and public cloud adoption is also relatively lengthy, with 66 percent of private cloud builds, and 51 percent of public cloud migrations, taking over a year.

Growth of virtualization is inevitable and exponential: The number of virtual machines in organizations is growing at a rate of 29 percent per year; compared to 13 percent for physical. With virtualization forming a crucial platform for cloud services, it suggests that the technology will favor a cloud approach in the future.

Organizations’ priorities are split: When asked how they prioritize workloads in their multi-cloud infrastructure, organizations were split between workload-based residence policies (27 percent of respondents), performance-based (23 percent), user-based (22 percent) and cost-based (13 percent). Ten percent had no clearly-defined residence policies.

“The cloud is the future of computing – increasingly, the question for organizations is when, not if, they make the move,” continued Crouchman. “However, organizations need to understand that the cloud does not follow the same rules as a traditional IT infrastructure, and adapt their approach accordingly. For instance, workload priorities are still treated as static. Yet the infrastructure housing those workloads, and the ongoing needs of the business, are completely fluid. An organization using the cloud should be able to adapt its workloads dynamically so that they always meet the business’s priorities at that precise time. Without this change in outlook, organizations will soon find themselves squandering the potential the cloud provides.”

Eric Senunas is VP of Marketing at VMTurbo.

Share this

The Latest

March 24, 2017

A growing IT delivery gap is slowing down the majority of the businesses surveyed and directly putting revenue at risk, according to MuleSoft's 2017 Connectivity Benchmark Report on digital transformation initiatives and the business impact of APIs ...

March 23, 2017

Why containers are growing in popularity is no surprise — they’re extremely easy to spin up or down, but come with an unforeseen issue. Without the right foresight, DevOps and IT teams may lose a lot of visibility into these containers resulting in operational blind spots and even more haystacks to find the presumptive performance issue needle ...

March 22, 2017

Much emphasis is placed on servers and storage when discussing Application Performance, mainly because the application lives on a server and uses storage. However, the network has considerable importance, certainly in the case of WANs where there are ways of speeding up the transmission of data of a network ...

March 21, 2017

The majority of IT executives believe investment in IT Service Management (ITSM) is important to gain the agility needed to compete in an era of global, cross-industry disruption and digital transformation, according to Delivering Value to Today’s Digital Enterprise: The State of IT Service Management 2017, a report by BMC, conducted in association with Forbes ...

March 17, 2017

Let’s say your company has examined all the potential pros and cons, and moved your critical business applications to the cloud. The advertised benefits of the cloud seem like they’ll work out great. And in many ways, life is easier for you now. But as often happens when things seem too good to be true, reality has a way of kicking in to reveal just exactly how many things can go wrong with your cloud setup – things that can directly impact your business ...

March 16, 2017

IT leadership is more driven to be innovative than ever, but also more in need of justifying costs and showing value than ever. Combining the two is no mean feat, especially when individual technologies are put forward as the single tantalizing answer ...

March 15, 2017

The move to Citrix 7.X is in full swing. This has improved the centralizing of Management and reduction of costs, but End User Experience is becoming top of the business objectives list. However, delivering that is not something to be considered after the upgrade ...

March 14, 2017

As organizations understand the findings of the Cyber Monday Web Performance Index and look to improve their site performance for the next Cyber Monday shopping day, I wanted to offer a few recommendations to help any organization improve in 2017 ...

March 13, 2017

Online retailers stand to make a lot of money on Cyber Monday as long as their infrastructure can keep up with customers. If your company's site goes offline or substantially slows down, you're going to lose sales. And even top ecommerce sites experience performance or stability issues at peak loads, like Cyber Monday, according to Apica's Cyber Monday Web Performance Index ...

March 10, 2017

Applications and infrastructure are being deployed and commissioned at a faster rate than ever before, the number of tools it takes to effectively manage these services is multiplying, and the expectations placed on IT to ensure customer satisfaction is increasing, according to The State of Monitoring 2017 report from BigPanda ...