ARLINGTON, Va.--(BUSINESS WIRE)--Stacklet, the leader in cloud governance, today announced results from its inaugural “State of Cloud Usage Optimization 2024” survey which explored the ways that are managing the rising reliance on and usage of public clouds.
With over 300 respondents, the survey found that more than three-quarters (78%) estimate that 21-50% of their cloud spend is wasted, highlighting substantial opportunities for cost savings. Furthermore, preventable mistakes—fueled by manual processes and the increasing complexity of AI—can cost enterprises over $50,000 monthly, with 15% reporting losses exceeding $75,000.
Worldwide spending on public cloud services is forecast to reach $805 billion in 2024 and double in size by 2028, according to the latest update to the International Data Corporation (IDC) Worldwide Software and Public Cloud Services Spending Guide. Although annual spending growth is expected to slow slightly over the 2024-2028 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.4%. Software as a Service (SaaS) – Applications will be the largest category of cloud computing, capturing more than 40% of all public cloud spending in 2024.
"Enterprise leaders have spoken: cloud costs are skyrocketing, as are preventable mistakes that lead to increased waste," said Travis Stanfield, co-founder and CEO, Stacklet. "What's more, the increased use of AI is fueling complexity and exacerbating cloud usage and spend. This is why greater visibility and taking timely action has become a top priority for enterprises. All enterprises need to temper cloud waste and lower cloud spend."
Survey Findings: Key Drivers of Rising Cloud Costs
The survey identified key trends and factors that impact cloud and usage. It also revealed that enterprises are seeing spikes in cloud waste, with billions of dollars lost by other preventable mistakes.
Cloud Complexity and AI-Driven Spending
- 82% of respondents agree AI is fueling increased cloud complexity and spending, with 45% strongly agreeing. As enterprises race to leverage AI, many admit they are not optimizing AI-related cloud usage sufficiently.
Common repeatable mistakes leading to cloud waste or inefficiencies are:
- Excessive log/data retention (50% of respondents)
- Incorrect resource sizing/type (49%)
- Costly AI experiments (48%)
- Outdated instance types (48%)
- Misconfigured networking (48%)
- Development systems running during off-hours (47%)
Estimated Waste that can be optimized:
- 51% of respondents estimate more than 40% of their cloud spend is waste
- 93% of respondents report at least 10% cloud spend as waste, representing billions in loss.
Cloud Usage Optimization Challenges
- Manual processes (52% of respondents)
- Controlling cloud usage (51%)
- Implementation of cloud cost best practices (47%)
- Limited visibility into resources and costs (45%)
Frequency and Impact of Costly Mistakes
- 49% experience costly mistakes monthly
- 62% report mistakes costing over $25,000/month
- 15% face mistakes exceeding $75,000/month
- 88% encounter these issues several times yearly, with 50% experiencing them monthly or weekly
Methodology & Demographics
Stacklet partnered with Centiment to conduct the survey. Centiment is a research platform that helps businesses and academics create surveys and reach target audiences. The 315 respondents were cloud professionals across the United States, targeting those responsible for cloud infrastructure management and FinOps.
Supporting Resources
To learn more about managing cloud costs or to follow Stacklet in real-time, check out:
- Full Survey Results
- Webinar “From Waste to Efficiency: Avoiding Costly Mistakes and Optimizing Cloud Usage” with guest David Linthicum
- Corporate Blog - How Stacklet Helps
About Stacklet
Stacklet helps organizations save up to 50% on their cloud bill while significantly reducing the risk of breaches. Cofounded by the creators of the Cloud Custodian open-source project, Stacklet delivers a differentiated governance as code platform that provides broad cloud resource coverage, an action-oriented approach, and automated remediation workflows. Stacklet swiftly remediates waste, inefficiencies, and risks, while also deploying preventative guardrails to eliminate these issues from recurring. For more information, visit www.stacklet.io.
