Corporations’ cloud moves are ill-prepared – survey

Diagram showing three main types of cloud comp...

Corporate calamity? Cloud plans ill-prepared

Large organisations moving to clouds to reduce costs but are ill-prepared to achieve goals according to CiRBA survey

By ECM Plus staff


ECM Plus
+++ According to a new survey by CIRBA, a majority of large organisations are migrating internal virtual infrastructure to the cloud believing it will cut costs, but only 17 percent achieved utilisation and ROI goals with virtualisation, and yet, they intend to use similar planning and management approaches for their move to the cloud.

According to date centre specialist CiRBA, their survey of 94 executives responsible for virtual and cloud infrastructure decisions at corporations with over 25,000 employees, many are ill-prepared to make the move:

It also found that 77 percent plan to use cloud-vendor supplied tools or spreadsheets to plan the migration of workloads to the cloud and only 48 percent plan to implement new solutions to manage cloud infrastructure.

“While cloud operating models have the potential to reduce spend, it is more likely that infrastructure costs will increase if these initiatives are poorly planned and managed” commented Chuck Tatham for CiRBA. “Virtualisation provided many organisations with some quick hits in terms of cost savings on hardware, but the reality is that few have fully met their objectives for utilisation and ROI. Despite this, the majority of organisations are betting on the cloud without dramatically changing the approach to planning these environments.”

CIRBA said that cloud operating models can naturally increase inefficient use of capacity and the amount of “excess” capacity an organisation has on hand in internal clouds by their very design, providing users with self-serve access to capacity can result in buffet-style over-indulgence as application owners request more capacity than they actually need to safe-guard against risk.

Also, pre-defined instance configurations and sized “buckets” of capacity may enable easier management, it added, but they can also result in built-in excess capacity in allocations vs. customising allocations for each workload’s true requirement.

Furthermore, CIRBA’s survey found that increased responsiveness requires a supply of excess capacity to be held as a demand buffer for new workloads. Sizing this capacity requirement, however, is tricky and teams could end up with unnecessary idle capacity taking up room on the data centre floor.

Other findings from the cloud survey revealed that corporations will face a direct conflict between high hopes for cost reduction and poor planning and management methods. 39 percent of respondents felt that virtualisation costs were higher than expected or delivered an uncertain ROI.  70 percent of respondents felt that moving to cloud infrastructure would decrease costs and 42 per cent cited cost reduction as the primary reason they would move systems off of internal virtualised infrastructure to the cloud.

CIRBA said a total of 77 percent planned to take a very basic and biased approach to migration planning, using a cloud vendor-provided tool or spreadsheets to plan the migration of their workloads to the cloud, the survey also revealed. 75 percent planned workload movements using spreadsheets in currently virtual environments, which not only slows response times, but also takes a very simplistic approach to sizing and placement in internal cloud environments.


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Filed under Cloud Computing, Industry News, Virtualization

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