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Survey finds SMEs are failing to realise benefits of cloud

New research from VMTurbo suggests that SMEs are failing to realise the benefits of cloud due to a lack of clear strategy

Organisations are failing to realise the so-called inherent benefits of cloud, according to new research from VMTurbo.

The survey of 1,368 organisations found that 57% of respondents had no multi-cloud strategy, while 35% had no private cloud strategy, and 28% had no public cloud strategy. 

The vendor says that a multi-cloud approach, where businesses operate a number of separate private and public clouds, is an essential precursor to realising reduced costs and better application performance.

“A lack of cloud strategy doesn’t mean an organisation has studied and rejected the idea of the cloud; it means it has given adoption little or no thought at all,” said Charles Crouchman, CTO of VMTurbo. “As organisations make the journey from on-premise IT, to public and private clouds, and finally to multi- and hybrid clouds, it’s essential that they address this. Having a cloud strategy means understanding the precise costs and challenges that the cloud will introduce, knowing how to make the cloud approach work for you, and choosing technologies that will supplement cloud adoption. For instance, by automating workload allocation so that services are always provided with the best performance for the best cost. Without a strategy, organisations will be condemning themselves to higher-than-expected costs, and a cloud that never performs to its full potential.” 

SMEs were also shown to be significantly underestimating the true costs of cloud implementation. Those planning private cloud builds gave an average estimated budget of $148,605 (£101,279), however, SMEs that had already completed builds revealed an average cost of $898,508; more than six times initial estimations.

“The cloud is the future of computing – increasingly, the question for organisations is when, not if, they make the move,” continued Charles Crouchman. “However, organisations need to understand that the cloud does not follow the same rules as a traditional IT infrastructure, and adapt their approach accordingly. For instance, workload priorities are still treated as static. Yet the infrastructure housing those workloads, and the ongoing needs of the business, are completely fluid. An organisation using the cloud should be able to adapt its workloads dynamically so that they always meet the business’s priorities at that precise time. Without this change in outlook, organisations will soon find themselves squandering the potential the cloud provides.”

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