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simplifies IT transformation.

Our software platforms remove the guesswork so you can now plan with confidence.

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Opportunity Lost: Enterprises Could Slash Cloud Costs by 36%

Posted in: In the news

Published by: ServerWatch

Published by ServerWatch
Written by Paul Rubens
Read the full article here

Companies that move their operations to the public cloud are failing to realize many of the possible benefits and are missing key opportunities to save significant amounts of money.

That’s the finding of a study carried out by TSO Logic, a company that makes software solutions for optimizing application delivery in data center environments. The study reveals that when companies move their operations to the public cloud, many either don’t save money at all or fail to save nearly as much as they could. In fact, the study found that as much as 35% of the average cloud service provider’s customer’s bill is for public cloud resources that are unnecessary.

The Cost of ‘Over-Overprovisioning’ Workloads

How come? There are a variety of reasons for this sorry state of affairs. One is that most companies over-provision their workloads when they run them in their own data centers.

That’s probably sensible, because they need extra resources to allow their workloads to grow without having to buy new hardware too often, and to accommodate periods when resources are in peak demand. But the study suggests that most companies “over-overprovision” — just 16% of OS instances it examined for the report were sized appropriately for their workloads. 84% could run on a smaller footprint… (continue reading)