Weekly CloudNews: Cloud Budgets and Potential Overspending During COVID-19


Welcome to this week’s edition of CloudBolt’s Weekly CloudNews!

Earlier this week, we looked at options for a Kubernetes deployment strategy and what might be the best fit for organizations. Plus, our cofounder Bernard Sanders outlined all of CloudBolt’s integrations with VMware.

With that, onto this week’s news:

How much cloud is enough?

Sandra Vogel, IT Pro, Apr. 22, 2020

“An organisation might start its venture into cloud in one particular area of its work. Perhaps there is a cloud platform offering support for artificial intelligence (AI), machine learning or an Internet of Things (IoT) implementation that is useful for new product or service development, or for streamlining work with an existing product or service. 

Once cloud is established as beneficial in the area it has initially been brought in to help with, it often makes sense to see how it can be used elsewhere in the business. There might be other client facing areas of the business that can benefit, such as employing cloud based AI chatbots for end user engagement, or perhaps there are back-office areas where cloud might be useful such as accounting and payroll services, with AI features that can assist with and speed up monthly close.”

Partners: Curb COVID-19-Spurred Cloud Overspending

Kelly Teal, Channel Futures, Apr. 20, 2020

“Channel partners now have a new responsibility: helping clients curb COVID-19-spurred cloud overspending. The spread of COVID-19 continues to ramp up the number of global cloud deployments as organizations seek to provide full-fledged work-from-home capabilities to suddenly remote employees. In fact, the coronavirus pandemic will fuel 2020’s cloud IT infrastructure spending past last year’s. The figures will rise 3.6% over 2019’s $66.8 billion, for a total of $69.2 billion, according to research firm IDC.

The channel remains vital to those efforts — managed service providers, VARs, ISVs and other partners have proven essential in implementing and overseeing new cloud tools for clients. But the responsibility extends beyond typical administrative efforts; it also must include the financial side of the house. Worldwide, enterprises, nonprofits and government agencies are experiencing unprecedented economic pressures. They have to support as much ongoing work as possible while spending as little money as possible (and defending the money they do spend). Never has cost control been a more important initiative than it is now. The channel sits in the ideal position to help address this challenge, especially regarding the most in-demand technology: cloud.”

IT directors plan to protect cloud budgets and consolidate vendors during downturn

Veronica Combs, TechRepublic, Apr. 20, 2020

“Cloud infrastructure projects, communications equipment, and collaboration tools for remote work are most likely to survive the economic downturn, according to a small survey of IT directors. Companies that have not made digital transformation a priority will be in a worse position than those that embraced new ways of doing business.

A third party surveyed 137 IT directors across tech operations teams in the US on April 1. Sixty-six percent had the role of director or senior director, 47% of respondents work for organizations that spend more than $50 million per year on tech budgets, and 48% work at companies with more than 1,000 employees.

According to the survey, agile delivery and cloud cost optimization are the most important priorities for tech leaders at the moment. IT managers will be using these tools to respond more quickly to customer demands and increase fiscal discipline. Agile and DevOps practices will drive faster software releases with lower failure rates and quicker recovery from incidents.”

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