Cloudamize: Many Businesses Overspend on Cloud Infrastructure

A new Cloudamize study of roughly 77,000 Amazon Web Services (AWS) instances provided details about cloud customer misconceptions and usage trends.

Dan Kobialka, Contributing writer

June 3, 2014

1 Min Read
Khushboo Shah Cloudamize39s founder and CEO
Khushboo Shah, Cloudamize's founder and CEO

Cloudamize, a capacity planning tools provider, has released a new study about the cloud computing marketplace.

The company analyzed nearly 77,000 Amazon Web Services (AWS) instances over a three-month period and found many businesses overspend on their cloud infrastructures.

Researchers said there is significant potential in the cloud, but many organizations still need to put the right tools in place to provide visibility and ensure that they fully leverage its benefits.

Key findings from the report included:

  • Over 34 percent of instances analyzed had cost-saving opportunities greater than 30 percent.

  • Nearly 70 percent of instances did not use the most cost-efficient pricing plan for their workload type and usage pattern.

  • Most users reserve future capacity at the highest reservation level possible to realize cost savings through AWS reserved instances.

  • 76 percent of instances were not optimally provisioned for their workloads.

  • Over-provisioned workloads had the potential for cost savings of 34 percent or more.

“In exploring the benefits of cloud computing, many organizations are finding that they encounter a significant amount of noise that hinders their decision-making,” Khushboo Shah, Cloudamize’s founder and CEO, said in a prepared statement. “This analysis deciphers the signal from that noise, dispels the myths around the cloud and enables them to move forward with confidence and efficiency.”

The full report can be downloaded here.

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].

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About the Author

Dan Kobialka

Dan Kobialka

Contributing writer, Penton Technology

Dan Kobialka is a contributing writer for MSPmentor and Talkin' Cloud. In the past, he has produced content for numerous print and online publications, including the Boston Business Journal, Boston Herald and Patch.com. Dan holds a M.A. in Print and Multimedia Journalism from Emerson College and a B.A. in English from Bridgewater State College (now Bridgewater State University). In his free time, Kobialka enjoys jogging, traveling, playing sports, touring breweries and watching football (Go Patriots!).  

See more from Dan Kobialka
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