Only five percent of companies reap the benefits of cloud

A new global survey from Dell Technologies shows that the vast majority of companies are missing out on a number of benefits of cloud despite increased investment.

Only five percent of companies reap the benefits of cloud 1As much as 73 percent of IT executives surveyed believe that the combination of public cloud solutions and on-premise IT infrastructure over-complicates IT operations, which stretches the leg to get the full value of cloud investment.

Sixty-four percent of companies planned to spend more money on public cloud solutions in 2019, but despite the increased investment, a new survey by Dell Technologies and Intel shows that only five percent of businesses have achieved a valuable link across their scattered IT infrastructures.

The study shows that many companies continue to build on their on-premise IT environments while moving more workloads into the cloud.

It fragmented the IT infrastructure so that companies end up struggling with overly complex multi-cloud environments. Thus, 73 percent of IT executives respond that increasing complexity is added to IT operations when using public or multi-cloud solutions with on-premise IT infrastructure.

“Paradoxically, more companies are investing in cloud solutions to simplify IT infrastructure and thus minimize operating costs, but instead they end up doing just the opposite. So there are some indications that companies should put in place a strategy for how to achieve simpler handling and greater coherence across hybrid environments if they want to reap the benefits of multi-cloud and remain competitive, ”says Poul Kjeldgaard, who is Field CTO at Dell Technologies Denmark.

Coherent handling creates value

Despite the fact that far from all companies are reaping the benefits of a cloud strategy, they have high expectations that it will create value for the company in the future. Indeed, Dell Technologies’ survey shows that nearly 7 out of 10 IT executives expect to be able to cut total IT costs by an average of 19 percent if they succeed in better coherence in their cloud management .

In addition to the economic benefits, companies believe that a consistent IT infrastructure management will have a positive impact on developer experience and security. As many as 96 percent of IT executives say they expect it to be easier for developers to deliver code to customers, of whom 56 percent expect it to happen on a daily basis. The companies also respond that they expect, on average, a 30 percent drop in the number of security breaches and other security incidents affecting data stored in a public cloud.

According to the study, the benefits of the IT department can spread to the rest of the business. For example, 38 percent of businesses respond that their hybrid cloud initiatives have effectively added value to the business after achieving consistent cloud management. The initiatives contribute to innovation and competitive differentiation.

The benefits exceed expectations

Dell Technologies’ survey also shows that the benefits often exceed expectations for those companies that have gained valuable connectivity across cloud solutions and on-premise IT infrastructure: 90 percent have seen increased efficiency and simplified operations.

In addition, 87 percent say that as a result, they experience a faster time-to-market, while 81 percent have increased the pace of innovation, 77 percent can develop applications faster, and 74 percent have adopted transformative technologies such as artificial intelligence and machine learning.

Three recommendations that can increase cloud yield

According to Field CTO Poul Kjeldgaard, companies need to think through these three key areas to get the full benefit from their cloud strategy:

  • Select a pre-built “stack” in the data center: Instead of building on-premise IT environments to use services from a cloud solution, choose a pre-built “stack” as the foundation of the data center. It frees up resources that can instead be used to integrate other cloud services. In this way, both the data center and, of course, the public cloud solutions chosen, become a variable IT good.
  • Choose an independent integration platform: Data integration remains one of the biggest obstacles to implementing real multi-cloud environments. Therefore, one should choose an independent cloud-agnostic integration platform. Otherwise, you may become dependent on the individual cloud provider integration tools that typically cannot be used by a wide range of other cloud providers.
  • Choose a tool to manage costs: Consider the multi-cloud economy as a dynamic size that needs to be updated monthly by both adjusting consumption backward and projecting it. There are a number of good tools for continuously updating the price levels in the various clouds. Otherwise, companies risk paying an overpriced as prices and conditions are not updated in line with technological quantum leaps. At the same time, there is a risk that the same licenses must be paid multiple times if you do not secure license mobility between on-premise for cloud and between clouds.