Businesses are increasingly adopting hybrid cloud environments because they don't want to depend on a single cloud provider, which helps them allocate cloud resources depending on their business needs and projects. Some quick
stats on hybrid cloud environments:
92% of organizations have a multi-cloud strategy in place or underway;
82% of large enterprises have adopted a hybrid cloud infrastructure; and
On average, organizations are using 2.6 public and 2.7 private clouds.
For regulatory and security reasons, companies sometimes need private clouds (where they have their own cloud and data never leaves their premises). The biggest cloud providers such as Amazon, IBM, and Microsoft have rolled out hybrid models that give companies access to private and public cloud solutions. This enables companies to keep sensitive information on private servers while simultaneously providing customers, for example, dashboards or apps that allow them to access data on a public server. The backend cloud stack can remain invisible to users while a company expands into multi-cloud environments, streamlining and optimizing the user experience.
According to the
Flexera 2022 State of the Cloud Report, organizations are struggling to control their cloud spend, with 13% of respondents indicating that their public cloud spend was over budget and 29% expecting their cloud spend to increase in the next twelve months. Respondents also estimated that their organizations waste 32% of cloud spend, up from 30% last year. With stats like these, it’s easy to see why FinOps, forecasting, and cost optimization are becoming increasingly crucial in cloud computing.