Businesses spend too much on cloud services

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Businesses are still spending too much on cloud services, and the channel has an opportunity to help them get a grip on the situation.

Couchbase research found that enterprises spend more than $8.75 million on cloud services, with rigid pricing and a lack of robust data management tools contributing to the problem.

These issues and the resulting overspending are an opportunity for the channel to spark a conversation with users.

“Service providers shouldn’t see this as a reproach, but as an opportunity,” said Huw Owen, vice president and general manager for Europe, Middle East and Africa (EMEA) at Couchbase. “The appetite for the cloud is there, and seemingly bottomless – what we can see here are clear ways for vendors to differentiate themselves by removing the last cloud hurdles to match organizations’ ambitions.”

The study found that cloud services were falling short of many users’ expectations, with a number of customers reporting that the complexity of the cloud made digital transformation projects more difficult to implement.

There was also a feeling that if they were armed with better ideas, the millions of pounds of overspending could be reduced. The chain may want to take a look at the pricing packages it can offer, with the inflexible plans also receiving criticism from customers.

The final takeaway from the Couchbase study was the challenges businesses were facing due to service limitations, with a high number (61%) forced to clip the wings around transformation plans because they couldn’t s rely on large-scale cloud services.

“If businesses raise their expectations and cloud service providers fix inefficiencies, they could open up new opportunities for digital transformation”

Ravi Mayuram, Couchbase

Despite these issues, customers surveyed by the vendor made it clear that moving to the cloud was “inevitable,” with nearly all companies putting more infrastructure into hosted environments.

“There’s no denying the impact of the cloud, whether it’s giving large enterprises greater scalability and agility or giving small businesses access to services and applications they could never put implemented internally,” said Ravi Mayuram, CTO at Couchbase.

“Companies believe they are getting what they need, otherwise we wouldn’t see this seemingly irresistible momentum. The question is whether they could get even more – $8.75 million is too much to just be a cost of doing business. If businesses raise their expectations and service providers fix inefficiencies, they could open up new opportunities for digital transformation – or simply cut costs,” he added.

“If costs and concerns continue to rise, we’ll see more organizations struggle to achieve their overall business ambitions,” Mayuram continued. “The key to many of these concerns, and the additional costs businesses face, is sprawl. The more cloud customers have control over their data, including where it is stored and how it is managed, the more confident they will be that it is secure, their services are scalable, and they are in control of their costs.

Meanwhile, Couchbase has added Google Cloud support for its Capella Database-as-a-Service (DBaaS) offering as it seeks to cover more bases.

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