Virtana released its latest independent research report, The
State of Multi-Cloud Management 2023. The report, part of the company's fourth annual
multi-cloud survey, asked 350 IT leaders in the US and UK-all cloud decision-makers-about their multi-cloud
infrastructure, challenges, and future plans. The report found that 83% of IT leaders are using
more than one cloud service provider (CSP), and 44% are using more than three
CSPs. The survey results demonstrate growing management and data complexities
that come from the high number of cross-provider interactions.
Complexity leads to cost
The survey asked respondents what their
number-one challenge is in managing their hybrid/multi-cloud infrastructure.
The top challenge for respondents using five or more CSPs, cited by 31% of that
cohort, was keeping rising costs under control, compared to 17-26% of
respondents with fewer CSPs to manage.
It is a hybrid world - and complexity abounds
Very few organizations are not using public
and private clouds at all (0.3% and 2%, respectively). The vast majority have a
solid mix of public and private clouds, with multiple CSPs in use. Complexity does
not come just from managing multiple CSPs, other factors include:
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77% of organizations manage more than four or more
instances, and 22% manage 11 or more.
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Cost consolidation adds to the complexity, as 56% of
respondents are not trying to consolidate cloud costs from multiple CSPs. And
of the 44% who are consolidating multi-cloud cost information, two-thirds are
doing that work manually.
"CSPs are not one-size-fits-all, so going
multi-cloud to take advantage of specific capabilities is often the appropriate
strategy. Most businesses need the flexibility to add instances to support evolving
requirements," said David McNerney, Cloud Management Product Lead at Virtana.
"But our main point to customers is that they can streamline the management of
it all."
Financial accountability structures are underdeveloped
FinOps is the practice of bringing financial
accountability to the variable spend model of the cloud to enable all teams to
make informed and appropriate business trade-offs between speed, cost, and
quality. Less than one-quarter of respondents (24%) have a mature, effective
FinOps practice in place, leaving 76% with incomplete, or even nonexistent,
processes and controls to hold stakeholders throughout the organization
accountable for cloud costs.
Other survey highlights
include:
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Despite the growing pains associated with establishing a
FinOps practice, 38% of respondents have put in the effort to move beyond the
early stages (up from 36% in March 2022), which means 62% have a solid
structure for a FinOps practice in place.
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But when it comes to tracking costs, most organizations
aren't looking to their FinOps team to take the lead. 89% of organizations use
their IT team, compared to only 41% that use their finance or procurement team
and just 17% that use FinOps.
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It's interesting to note that the more CSPs an
organization has - and 69% of respondents using five or more - the more likely
they are to track costs in a siloed way, compared to 54-58% of those using
fewer.