The Covid-19 pandemic has forced the majority of businesses in the UK to spend more on technology - and many are expecting to spend even more in the next 12 months, according to a new report from Rackspace.
The report claims that organizations, wary of the need to budget carefully, are fearful of breaking the bank. They are mostly concerned about funding planned projects and their ongoing ability to innovate.
To save costs (opens in new tab), businesses are looking towards cloud optimization, according to Rackspace. However, many IT leaders either don’t fully understand the technology, or don’t know how to take full advantage of its potential.
Only half of IT decision makers understand what cloud cost governance and cloud cost optimization involve - and how they differ. This means there’s room for improvement in cost optimization strategies, but also that businesses are at risk of “cloud sprawl” and other unwanted costs.
The report claims that two fifths of IT leaders feel empowered to make budget decisions, but lack the in-house expertise, despite almost all having dedicated teams for this purpose.
Cloud has emerged as the “central focus of modern business operations”, the report claims, with more than half of IT leaders seeing cloud infrastructure as one of their top priorities when budgeting.
“Many businesses have found out the hard way in 2020 that their IT systems, resources and spend tracking weren’t ready for Covid-19,” said Martin Blackburn, Managing Director EMEA at Rackspace Technology.
“While it is encouraging to see so many IT leaders recognize the central role cloud can play in controlling costs (opens in new tab), intention to follow best practices and the actual knowledge required to do so are different things, and support is often required."
- Best cloud storage of 2020 (opens in new tab)