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Cost optimisation valued as the biggest reason to use multi-cloud

Organisations value cost optimisation as the main drawing point to multi-cloud, research shows.

Businesses view cost optimisation as the biggest reason to adopt a multi-cloud strategy, says BMC. The company, which offers services to organisations trying to digitally transform, announced the results from a survey at its London Exchange event on November 14. The findings featured opinions from 1,026 decision makers from 11 countries.

Firms using multi-cloud opt to source services across various cloud providers, instead of only one. The respondents to the survey saw cost optimisation (45%) as the biggest reason to adopt this setup.

Eric Blum, vice-president and chief technology officer of BMC, said multi-cloud enables better cost optimisation because one cloud provider could have a lower price, compared to rivals, for one application but a higher one for another.

“Cloud cost typically ramps up because of additional services that are added on top of pure capacity,” he said. “Multi-cloud management enables customers to mutualise those costs and leverage local competitive pricing.”

Another reason to adopt multi-cloud was to maintain agility, which 44% of the IT leaders agreed with. Blum said this ties with avoiding supplier lock-in, which is important for a company that wants to have a strong worldwide cloud presence.

“It’s great to have a massive global deal with, say, Amazon Web Services (AWS) or Azure, but when you go to Germany, is there potentially a more competitive German cloud provider? That will also guarantee the data is managed in Germany, under German laws and regulation? Maybe,” he said.

“Is there a local French cloud provider that could give you a better deal with more security and compliance than a global provider? Perhaps, yes. So the lock-in element is something that is going to become a bigger and bigger problem for people – who want to deploy global digital businesses – hence they need to have solution that will enable them to not be locked-in.”

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The results also revealed that 53% of UK respondents said they did not know how much their organisation is spending on cloud services, compared to 40% globally.

The majority of global (80%) and UK (85%) respondents said they need new tools for cloud management. Additionally, 78% of global IT leaders are considering using AI as a solution for this, while the UK was 64%.

Blum said the new solutions are needed because older systems can not specifically connect with management services in various cloud platforms.

“Multi-cloud means the management tools need to be able to connect natively with cloud management services and application programming interfaces (APIs), as the different providers haven’t agreed on any standards. That includes the ability to discover cloud infrastructures, to manage capacity, monitor and secure the business services, and forecast and report on costs,” he said.

“Most customers operate legacy system and services management tools which don’t have those capabilities.”

Those surveyed also highlighted the main difficulty for those trying to manage a multi-cloud setup is incorporating security and governance policies. Security is also what they plan to invest most in over the next two to three years.

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