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Cloud adoption still a work in progress, NetApp finds

By Catherine Knowles
Tue 17 May 2022

NetApp has announced the results of the annual Cloud Infrastructure Report based on a survey of public cloud business and IT decision makers.

The report from Spot by NetApp, continuing the annual survey previously conducted by CloudCheckr following its acquisition by NetApp, highlights the current state of cloud management and how organisations are working to optimise their environments.

A key trend surfaced in the report highlighted that while companies continue to accelerate cloud adoption, many do not believe they are effectively optimising their infrastructure.

Businesses are addressing this through the development of internal programs such as Cloud Centres of Excellence (CCoEs) and FinOps, cloud purchase commitments, tools, and external help (such as managed service providers).

While several respondents indicated that they are still maturing in these areas, those that have successfully deployed and scaled programs report improved agility, efficiency, and governance in their cloud journey.

NetApp executive vice president and general manager public cloud services, Anthony Lye, says, "The results highlight that while companies have rapidly adopted cloud, IT continues to look for ways to increase the value and ROI of its cloud investments.

"Organisations also make it clear that cloud cost, security, automation, and resource optimisation will remain key concerns. Cloud-centric companies most likely to succeed will implement the right strategies, technology solutions and partner relationships to help manage costs and reduce complexity."

Key findings from Spot by NetApp's 2022 Cloud Infrastructure Report includes the following:

Cloud and cost management is still a work in progress

Confidence in visibility into public cloud costs has dropped in the past year:

  • 21% were very confident in 2022, down from 31% in 2021
  • 62% of respondents will focus on cost management in 2022
  • 96% say FinOps is important to cloud success, but only 10% have a mature FinOps practice

As investment in public cloud infrastructure deepens and the number of cloud users matures, there must be careful consideration of the business value gained from these resources, the researchers states. The continued focus on improving cost management this year and the role of FinOps to help do this is even more critical for larger enterprises.

Managing cloud operations in 2022 will grow in scope

2022 transformation goals include increasing the use of cloud technology (63%), migrating additional services to the cloud (52%), and optimising cloud costs (50%).

The majority (90%) report they have or plan to have a Cloud Centre of Excellence (CCoE). 61% of those who currently have a CCoE say that their responsibilities will grow in 2022.

Enterprises must continue to take steps even after migrating to the cloud to optimise their cloud investment. Those with a more mature CCoE practice reported seeing greater benefit and value compared to those with less established CCoEs, the researchers state.

MSPs play a key role in cloud operations

71% use an MSP for their cloud operations, 100% of companies that work with an MSP for cloud operations say that they have benefited from that relationship, and 83% of companies that work with an MSP for cloud operations rely on them for their FinOps practice.

When MSPs take a more significant leadership role in operating their clients cloud environments, IT organisations report seeing greater value.

This reflects the impact of MSPs investments in developing their cloud operational services, such as cost optimisation, security, compliance, and asset management.

In February 2022, an online survey was sent to independent sources of IT and business stakeholders responsible for public cloud infrastructures such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud.

A total of 305 respondents completed the survey. Participants represented a wide range of roles, company sizes, industries, and job levels. Certain questions were repeated from similar 2017, 2019, and 2021 studies to investigate changing trends.

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