Study finds firms are ill-prepared for move to the Cloud

Large numbers of companies are switching to the Cloud with the belief that they are reducing costs yet many organsiations are ill-prepared for the move, according to a new report.

The study by data centre analytics provider, CirBA, found that of the 94 executives responsible for virtual and cloud infrastructure decisions at organisations with more than 25,000 employees, 77 percent plan to use cloud-vendor supplied tools or spreadsheets to prepare the migration of workloads to the cloud and only 48 percent plan to implement new solutions to manage cloud infrastructure.

What's more, only 17 percent of companies who migrated internal virtual infrastructure to the cloud achieved their utilisation and ROI goals with virtualization and yet, they intend to use similar planning and management approaches for their switch to the cloud.

Commenting on the findings, Chuck Tatham, Operations and Business Development of CiRBA said: “Virtualization 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.”

He went on to explain that While cloud operating models have the potential to reduce spend, infrastructure costs are far morel likely to increase if these initiatives are poorly planned and managed.

One of the key findings from CiRBA’s survey was the direct conflict between high hopes for cost reduction and poor planning and management methods: 39 percent admitted that virtualization costs were higher than expected or delivered an uncertain ROI, while 70 percent said they thought that moving to cloud infrastructure would decrease costs and 42 percent cited cost reduction as the primary reason they would move systems off of internal virtualized infrastructure to the cloud.

However, with a total of 77 percent planning to use simplistic approaches such as a cloud vendor-provided tool or spreadsheets to plan the migration of their workloads to the cloud, reponse times are likely to be slower, and therefore cost more.

“Strategic workload placement is critical to achieving savings, particularly in internal clouds,” said Tatham. “Taking a manual approach to planning cloud migration, like many organisations have done with virtualization is a recipe for inefficiency and reduced return on investment. There are simply too many factors to consider in placement and capacity sizing decisions to be able to do so efficiently and accurately using home grown tools," he added.

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