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Business are wasting millions on unused cloud services

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Even though cloud services are generally perceived as critical to business success, many organisations are throwing away lots of money, buying services that they end up not using at all.

This is according to a new report, the European Insight Intelligent Technology Index (ITI).

Based on a poll of 1,000 enterprises across Europe, the report states that more than $36 million are being spent on cloud services a year. Out of that number, almost a third (30 per cent - $10.9m) gets spent on services that end up not being utilised.

When managing how they spend their money on cloud-based services (opens in new tab), the respondents have identified three main challenges, which include determining best-fit workloads for public, private and hybrid clouds (opens in new tab), planning and allocating budget for cloud consumption, and a lack of visibility of used services at the cst centre, workload and application level.

“Cloud continues to be a mission-critical enabler for agile and digital business, but it needs the right approach,” commented Wolfgang Ebermann, President, Insight EMEA. “A robust operating model, that provides oversight and continual optimisation of cloud environments, is critical. Under-utilised technology has been a problem for decades, so it’s not surprising to see the problem spread to the cloud. However, by putting the right controls in place, organisations can optimise cloud consumption (opens in new tab) and ensure they only pay for services they are using.”

Investment in digital innovation will keep on growing, the report states, adding that at the centre of this growth is the need to empower employees with technology. In fact, three quarters of CIOs said they use modern technology to attract and keep talented workers.

To read the complete 2019 European Insight Intelligent Technology™ Index, go here.

 

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.