Why comprehensive observability reduces cloud waste & minimises IT spending

In recent years, IT leaders have consistently grappled with decisions surrounding adopting and integrating cloud services. The allure of the cloud, with its promise of scalability, flexibility and cost-efficiency, presents a compelling case for enterprises considering a shift from traditional on-premise infrastructures. However, the path to cloud adoption is fraught with complexities and challenges that demand a nuanced approach.

The proliferation of cloud services is undeniable. Research by CloudZero indicates that over 90 per cent of organisations have already embraced some form of cloud computing, with more than 60 per cent of corporate data now residing in the cloud. Gartner states that the cloud will become a business necessity by 2028. Despite these trends, the journey to cloud adoption is not without its hurdles.

The financial commitment to cloud technologies is also significant, with small and medium-sized enterprises allocating over half their tech budgets to cloud services. According to Gartner, IT spending on public cloud services is growing unabated. In 2024, worldwide end-user spending on public cloud services is forecast to total $679 billion and is projected to exceed $1 trillion in 2027. 

Cloud waste and cloud sprawl

A notable issue facing organisations with the escalating costs of cloud technology is "cloud waste." The same CloudZero study found that an estimated 32 percent of cloud spending does not yield the intended value. Nearly half of the businesses leveraging cloud technologies struggle with cost management, and over 50 percent find it challenging to realise a return on investment from their cloud migrations. 

Additionally, the "Cloud sprawl" phenomenon, the uncontrolled proliferation of cloud instances and services, exacerbates the complexity of managing and optimising cloud resources, many of which are hybrid multi-cloud environments.

Hybrid multi-cloud is standard

Hybrid multi-cloud setups have become the standard practice. A study by analyst firm Flexera found that 89 percent of companies have adopted a multi-cloud approach, with 80 percent also maintaining on-premises infrastructure, effectively embracing a hybrid multi-cloud strategy. Therefore, there is a critical need for a cohesive strategy in monitoring and observability across all aspects of the hybrid multi-cloud to ensure comprehensive management and security of the entire ecosystem.

Architecture mining

For IT leaders, migrating to the cloud, whether wholly or through a hybrid multi-cloud model, necessitates a strategic approach to navigate these challenges. One solution lies in the concept of "Architecture Mining," a process of extracting actionable insights from the wealth of data embedded within infrastructure management platforms. This approach involves analysing the architecture, dependencies and costs associated with cloud and hybrid environments to make informed decisions.

Architecture mining solutions enable organisations to achieve 360-degree visibility of their cloud environment, including security postures, cost implications and interdependencies among services and applications to help identify potential bottlenecks and security risks. This comprehensive visibility is crucial for managing security risks, optimising resources and ensuring efficient operations. As enterprises get on with the mammoth challenge of cloud integration, the necessity for a methodical and enlightened cloud strategy becomes increasingly important. 

Conclusion

Comprehensive observability transcends mere cost savings. It embeds a culture of efficiency and sustainability within IT operations, encouraging practices that align with financial prudence and environmental responsibility. In today's digital age, where technology's carbon footprint is an increasing concern, such approaches resonate well with broader corporate social responsibility goals.

The strategic application of comprehensive observability within cloud and hybrid environments emerges as a critical lever for organisations aiming to minimise IT spending and reduce cloud waste. It enables insight and control, transforming IT infrastructures from a potential financial burden into a strategic asset. 

Coupled with the competitive advantage it provides, it underscores the invaluable role of informed, strategic planning in the cloud computing environment. As companies continue to navigate these complex challenges, those who invest in understanding and optimising their cloud investments through comprehensive observability will undoubtedly be better positioned to thrive in a challenging economic environment.