Multicloud is the new normal. Thankfully, this new normal is no mere coincidence and has positive consequences.
New research shows that most organizations benefit from using multiple cloud providers. Adopting multi-cloud has helped us achieve business goals such as increased reliability and scalability, and better overall security and governance. However, nearly all organizations (94%) admit that there is avoidable cloud spending and skills shortages continue to prevent full multicloud success.
HaschiCorp recently released a study called State of the Cloud Strategy 2022 Study: Making Multicloud Work. The report not only shows the positive results of multi-cloud adoption, but also finds trends towards automation frameworks that aid multi-cloud operations. Below, we explore the key takeaways from the report and see what CloudOps and platform teams can take away from current multi-cloud trends.
Multicloud is Achieving business goals
First, the use of public clouds has increased dramatically. The majority of public cloud workloads are likely to double over the next two years. To support this influx, more organizations are moving to multicloud. A HashiCorp survey found that 60% are already using multicloud and 21% plan to use multiple clouds in the next year.
The good news is that the multi-cloud strategy seems to be working. Ninety percent of his respondents say multicloud helps their organizations achieve their business goals. The numbers are an impressive leap from his 2021 survey for HashiCorp. In the survey, only 53% of organizations said multicloud helps them achieve their business goals.
So what are businesses extracting from multicloud adoption? Reliability is the most important business goal driving multicloud, at 46%. This is followed by digital transformation (43%), scalability (42%), security and governance (41%), and cost reduction (39%). As you can see, multicloud benefits equally in many areas.
Centralized automation supports multicloud
With the rise of multicloud, CloudOps is becoming a field of its own. As such, it’s common for organizations to build a dedicated Cloud Center of Excellence (CCoE) or strategic team to manage their cloud operations. 86% said they rely on cloud platform teams. Such teams are often responsible for standardizing cloud services, developing cloud best practices, developing operational policies, and related duties.
Cloud automation is becoming increasingly important to help cloud platform teams. The survey found that 99% believe automation is critical to running a multicloud infrastructure. Multicloud automation helps resolve conflicts between different cloud workflows. Respondents also found that it can be applied to provide more flexible infrastructure, improve security and governance, and make better use of cloud resources. Improving security is particularly important here, with 89% saying security is a key factor in cloud success.
So how are these automations built? Few people develop cloud automation tools from scratch. Only 27% do. It’s much more common to use open source or commercial tools for cloud automation. Overall, whether these tools are running “as a service” or are self-hosted are pretty much the same.
Regardless of the tool, enterprises are reaping a wide range of benefits from using middleware to manage their multi-cloud operations strategy. 49% cite scalability as a benefit. This is followed by infrastructure provisioning (42%), cost optimization (40%) and more flexible deployment options (39%).
(Almost) Everyone Spends on Multicloud
Not surprisingly to some, the survey found that 94% of organizations are wasting money on the cloud. The top areas that contribute to cloud overspending and wastage are: idle or underutilized resources (66%), overprovisioning of resources (59%), lack of required skills ( 47%), manual containerization (37%).
The cloud overspending dilemma requires proactive consideration of optimization and reducing idle resources. As we’ve discussed before, some organizations are even hiring cloud economists (cloud CFOs) to help slow rising cloud prices. In support of this mission, 43% say consistent and automated tools have or will lead to better utilization of cloud resources.
Wasteful spending is prevalent, but the vast majority of companies are correctly predicting their cloud spending. More than half (57%) say their organizations’ projected cloud spending in 2021 will match their actual cloud spending.
Get the most out of multicloud
Multicloud is becoming more common in all IT departments, as is middleware for operating and standardizing logic across multiple clouds. Also, the widespread business success of multi-cloud signals has increased the maturity of the space.
But multicloud is not without its challenges. Skills shortages rank as the number one factor impeding an organization’s ability to operate multicloud. Enterprises must face other challenges such as siled teams, compliance and risk management, and lack of training to fully realize multicloud. Standardized operating models and shared workflows and policies are possible ways to address these obstacles.
The HashiCorp survey surveyed 1,000 technical professionals and decision makers around the world. HashiCorp also partnered with Forrester to provide additional analysis of the findings. To read the results yourself, check out the full report here.