Independent Study by Boomi Links Wasted Cloud Spend to Blind Cost Management Strategies
Boomi™, the intelligent integration and automation leader, today launched the findings of a commissioned study conducted by Forrester Consulting on behalf of Boomi, December 2023, that reveals companies are fraught with uncontrolled and wasteful cloud spend, and cost remediation tactics are introduced too late or without a full picture of the environment.
The independent study found 72% of global companies exceeded their set cloud budgets in the last fiscal year. With public cloud spend expected to reach more than $1 billion in the US by 2026, the stakes are high for improving cloud cost management and optimization (CCMO) strategies.
Although the study shows leaders prioritizing CCMO tactics earlier in the cloud development process (65%), most companies lack proactive strategies at the earlier architecture level.
Just six percent of decision makers report their cloud cost remediation strategies are as proactive as possible, and only four in 10 say they contain costs at the solution architecture stage. While organizations are aware that they could optimize cloud costs at the solution architecture level, less than half of companies have the strategy in place to resolve perennial problems, such as excessive storage (52%), lack of integration strategy (44%) and overconsumption of bandwidth (42%).
“We believe the findings are a clear example of integration being left out of the cloud cost equation,” said Ed Macosky, Chief Product & Technology Officer at Boomi. “When systems are disconnected and data is siloed, companies are only seeing part of their organizations’ cloud cost picture, and this lack of visibility impacts tracking and decision making.”
When asked how difficult it is to track areas of cloud spend with the CCMO tooling currently in place, leaders stated data management as the most difficult undertaking, followed by egress charges (e.g., fees for moving data in and out of the cloud), with time and resources needed to build and maintain app integrations as the third most difficult area to track.
“More than half (56%) believe their CCMO recommendations are only as good as the data their company can provide,” said Macosky. “Without a comprehensive view of cloud costs, companies are operating blindly and missing opportunities to optimize spending.”
