As Azure Cloud Spend Skyrockets for Industrial Enterprises, A New Breed of Cloud Spend Calibration Tools Arrive
Author: Kalibr8 Marketing
Date: January 16, 2024

Originally published on The Frontier Hub

Amidst the dawn of the new digital age, ripe with innovative technology, cloud computing has quickly risen to new heights, practically becoming a necessity for enterprises of all sizes and verticals. The adoption and utilization of cloud computing applications have been so rapid that it has, in turn, spurred its own trend, resulting in the increased use of cloud computing platforms.

There are already numerous types of these platforms, which host the server hardware and operating system in a web-based datacenter and enable the coexistence of hardware and software, with Microsoft Azure among the most notable.

Having launched initially back in 2010, Microsoft Azure has grown to become one of the two giants that occupy the cloud computing sector, along with AWS. However, in recent years, in conjunction with the swift growth of cloud technology, Azure’s cloud platform has climbed to new heights. In 2023, Microsoft reported growth of 29 percent at Azure, faster than Google Cloud’s 22 percent growth and more than double the pace of expansion at AWS, which reported 12 percent growth.

Apart from the rise in overall cloud popularity, the speedy growth can be attributed to the advantages Microsoft Azure can provide an enterprise’s cloud operation, relating to data security, scalability, and analytics services. However, with many cloud computing platforms and Azure, the technology does have its drawbacks to some extent. In the case of cloud platforms, the downside is most often associated with cloud visibility and overall cloud control.

Visibility and control are two of the most critical aspects in cloud computing for businesses in any sector, but are especially important as more and more factories are invoking the cloud for automation, including managing robotics, remote visual inspection for quality and worker safety, and more,” said Ben McGahon, founder and CEO of Kalibr8, a next-generation cloud optimization platform provider based in Dublin. “Both control and visibility are imperative for any cloud deployment to succeed, as they are essential for enhancing decision-making pertaining to security, performance, and, most importantly, cost optimization. Without adequate visibility and control, manufacturers may quickly find themselves involved in runaway cloud spending, better known today as cloud waste.”

As enterprises, both large and small, are increasingly leaning on the cloud, even without the proper knowledge or training, cloud waste is becoming more of a plague with each passing day. The 2023 State of Cloud report by Flexera found that roughly 28% of all cloud spending was wasteful, which amounts to an average of USD 7.2 million per enterprise. At that rate, a total of USD 126.77 billion worldwide cloud expenditures would fall under the category of wasted spend.

This has, unsurprisingly, kickstarted a movement within the business world to reduce cloud waste and inefficiency, which, as stated, starts with improved visibility and control. Though this is easier said than done, by leveraging the myriad of innovative devices and applications, enterprises are finding the right technologies to pair with cloud platforms to achieve their desired goal of cloud efficacy. For many organizations, the perfect unison for cloud platforms such as Azure has taken the form of cloud optimization software. 

“It is now possible for the Managed Service Providers and the industrial customers they serve to automate the process of determining the best way to choose and allocate cloud resources to maximize performance while reducing waste and minimizing cost,” McMahon said. “Considered a direct antidote to cloud waste and sprawl, our just-released K8 Singularity solution provides the necessary visibility and control improvements in order to not only enhance cloud spending efficiency in the present but set enterprises up for prolonged improved allocation of resources.”

For instance, the enhanced visibility offered by cloud optimization software can allow enterprises to analyze financial reports, track how they spend money and see unnecessary spending patterns. This, in turn, makes it easier for a business to identify areas where they’re overspending and make a plan to trim down costs, saving a substantial amount of capital.

Furthermore, increased cloud visibility can also aid in enhancing overall organizational efficiency by providing a more complete view of one’s IT infrastructure. By pairing cloud optimization software with Azure, businesses are provided with real-time visibility into their cloud infrastructure and environment, enabling them to proactively troubleshoot any issues, plan capacity effectively, and optimize performance.

“Enhanced visibility obtained thanks to cloud optimization software can also play an important role in determining which resources are currently misused,” McMahon explained. “Without strong visibility into one’s cloud computing environment, idle or unused resources can continue to be billed without ever being leveraged. This is crucial in reducing cloud waste, as daily this may not seem like much, but over months, or even years, this number can grow to excessive amounts.” 

Finally, with the improved cloud control, MSPs and their customers are able to create a more informed forecast of spending and implement business KPIs. This gives a company a better idea of how much it will spend on technology in upcoming years, which can affect numerous organizational decisions. Including allocation of resources to better understand how a budget may have to be re-worked, the control cloud optimization platforms provide businesses is not just for the present day.

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