It’s always helpful for us to discuss IT current trends and challenges with the people in our industry. Many of these themes came to light as we provided SLIM-Suite product demonstrations along with question and answer sessions at the QSM exhibit. Amalgam Insights bridges CIO & CFO gaps in purchasing technology and taking full advantage of data for machine learning, applications, and building smarter brains. Add to this a lack of transparency in their report breakdowns, and it’s easy to see why getting a true picture of the market is so challenging. Thankfully, reports from leading research agencies – like Gartner and IDC – help to give us some deeper insight. This camp includes the big names you would expect like Microsoft, SAP, Oracle and IBM.

cloud cost management gartner

Instead of installing the software application on your local device, you access the provider’s application using the web or an API. Integration is another aspect to look for in a cloud management platform. The platform, for example, needs to support access to IT systems, billing systems, reporting and monitoring tools etc. One of the big areas of interest at the conference was IT cost optimization, which is also one of QSM’s main areas of expertise. The presentation was well-attended and a meet and greet session followed where our QSM team, consisting of Ethan Avery, Richard Pelaez, Greta Moen, and I, provided solution demonstrations and answered questions.

Platforms

Focusing your IT team on projects that create revenue, rather than locked in a server room managing on-premises infrastructure. In fact, a Verizon study showed 77% of businesses feel cloud technology gives them an advantage over competitors. For a more detailed look within the public cloud market we must turn to alternative research and reports. It’s no surprise then, that Gartner received a 50% increase in inquiries related to third-party support in 2019 compared to the same period in 2018.

A key factor in the success of your business is ensuring your technologies remain operational. No matter how in control you are of business processes, your systems will eventually let you down. In today’s market, even limited downtimes can impact significantly on your productivity, revenue, and brand reputation. A few examples include scaling your compute to changing demands, reducing resources spent managing hardware and software, or gaining greater insight to your data. Moving to cloud allows you to choose the services that are already compliant.

The IDC report identifies SaaS as the largest spending category, capturing more than half of all public cloud spending throughout the forecast period. IaaS is reported as the second largest spending category and is the fastest growing with a projected five-year CAGR of 32.0%. PaaS is the lowest spending category, with the second largest five-year CAGR of 29.9%. You don’t have to invest time in installing, managing or upgrading software, this is all handled by the provider. ITAM Review’s SAP License Management Certification is an independent verification designed to help ITAM practitioners identify tools suitable for managing SAP Licensing. Snow Optimizer for SAP® Software exceeded the requirements of the ITAM Review SAP License Management Standard.

With the cloud provider responsible for any upgrades should those compliance requirements change. Leading the way is Microsoft, with a 17% market share and impressive annual growth of 34%. Microsoft continues to gain market share, primarily due to its dominance in the high- growth collaboration segment.

cloud cost management gartner

Not to mention avoiding the security risk of running a solution following an end-of-life event. These relatively new companies are experiencing rapid expansion with higher growth rates. What they lack however is the huge brand recognition of the Microsoft’s of this world. What Matrix provides independent and in-depth technical evaluations to help with purchase decisions, solution design, and product research. The Cloud Excellence Awards recognize the very best individuals, companies, projects and products in the cloud today. Please provide your contact information and we will send you a link to download the resource immediately.

Cost and expense management is becoming “table stakes.” This, along with provisioning and orchestration, is often stressed by vendors and tends to be a strength area for many. It is less so for cloud migration, backup, disaster recovery or security. Wherever software is being consumed, there’s a risk that you’re spending significantly more than you need to. Therefore, SaaS optimization sholud be a key focus for Cloud Software Asset Management.

Added Benefits Of Cloud

The Cloud 100 celebrates the coolest cloud computing players providing cloud infrastructure, monitoring and management, security, software and storage. Some organizations have tried to implement cost management solutions from Densify, Apptio’s Cloudability, Cloud Health, Flexera, AWS or Azure. These technologies decrypt billing trends across hybrid or multicloud configurations and recommend where to eliminate inactive storage, change instance types or opt for lower-cost clouds and regions. However, they are only point solutions and fail to align the business objective, plans, P&L and processes. Featured Resource Unified Support Services for Enterprise Software Rimini Street, Inc. is the leader in third-party enterprise software support and strategic services to organizations around the world. Without huge investment, the right cloud provider can quickly offer powerful compute and storage capabilities with built-in analytics to process, analyze, and find value in your data.

We’ve already taken a deep dive into comparing AWS and Google Cloud Platformhelping you to understand the range of IaaS and PaaS products and services available. Microsoft also has a handy guide for AWS to Azure services comparison, to help you compare their services like for like. Leading vendors like AWS, Azure, and Google Cloud Platform offer hundreds of different services. Each with its own pricing schedule and thousands of configuration options that change the price. One of the original motivating factors to move to the cloud has been reducing costs.

Solutions

Growing from a $229 billion run rate in 2019 to almost $500 billion by 2023. Whether it’s lack of tools or talent – like many businesses – you will find public cloud offering you a ready-made solution to mitigate risk. Not to mention the vast resources cloud providers can offer to protect against threats. Owning a 7.7% public cloud market https://globalcloudteam.com/ share according to Gartner, Alibaba has annual revenues of $2.49 billion, and impressive growth of 92.6% in 2018. The Chinese ecommerce giant continues its impressive growth into 2019, reporting Q1and Q2combined revenues of $2.2 billion, a growth of 66%. This places the company’s annual revenue run rate in excess of $4 billion.

cloud cost management gartner

Featured Resource The Comprehensive Guide to Independent, Third-Party Support Services for Enterprise Software Independent, third-party software support saves 50% to 90% annually and frees up the IT team. I would have loved a bit of coverage of RDS that is the core to many businesses. Also, an on-premise licensing cost of Microsoft’s SQLServer could easily be around $15,000 to run on a single core.

They are responsible for all management, maintenance, security, and upgrades. You own, manage, update and upgrade your own cloud ecosystem of server, networking, software, or platform resources. Instead, a cloud finance management framework that embraces the cloud paradigm and brings together perspectives from technology, finance and the business must be devised. Continued diminishing returns from software vendor-based support are leading enterprises to seek higher-quality/lower-cost support from independent, expert service providers. The balance between service and price is no longer about sacrificing one for the other; rather, with independent, third-party service the equation can be one of expert support and savings. In 2022, while it’s still possible to significantly cut expenditure by moving your operations to the cloud, it’s not guaranteed.

Salesforce comes next with 12% SaaS market share and annual growth of 21%. Followed closely by Adobe, with a 10% SaaS market share and an annual growth of 29%. Next is SAP, closing on the vendors above thanks to a 6% SaaS market share and a 39% reported annual growth – highest of the top five vendors. Lastly is Oracle, also taking a 6% market share and reporting annual growth of 29%. Combined, these SaaS vendors account for 51% of the worldwide SaaS cloud market share. Some are moving to more modular offerings in which you are charged only for functions used .

Model the potential pricing against your future cloud deployment plans and compare against competitive offerings. The 5-Star rating is awarded to an exclusive group of companies that offer solution providers the best of the best. Gartner Market Guides define a market and explains what clients can expect it to do in the short term. It outlines attributes of representative vendors that are providing offerings in the market to give further insight into the market itself.

Support Services

By supporting mobile access, cloud technology gives your employees the ability to securely access your business’s systems and data via their mobile device. Supporting remote working and keeping your employees connected and productive, even when they are on the move. In 2019, the PaaS market is forecast to generate in excess of $20 billion according to Gartner. The market continues to grow with more than 360 vendors and 550 cloud platform services across 22 categories. The most recent data from Gartneron the worldwide Infrastructure as a Service market shows annual revenues of $32.4 billion.

  • Find out what data says in this thorough cloud market share analysis🥇📊 Click to TweetAs customers, the cloud market has given us a vast range of competitive services to help realize real business benefits.
  • By supporting mobile access, cloud technology gives your employees the ability to securely access your business’s systems and data via their mobile device.
  • IaaS is an offering of cloud computing where the provider supplies you on-demand access to computing resources such as networking, storage, and servers.
  • It’s always helpful for us to discuss IT current trends and challenges with the people in our industry.
  • Some vendors are integrating different products , with varying degrees of success.
  • A public cloud is where the provider supplies you with access to their data center infrastructure.

Achieving cost savings for your business depends on the cloud pricing model you select and how efficiently you operate your cloud services. With the current state of the environment, sustainability has become a top priority Cloud Cost Management for businesses. As leading cloud technology providers champion the use of renewable energy in their data centers. SaaS is an offering of cloud computing where the provider gives you access to their cloud-based software.

Don’t immediately assume you need a CMP if a single or limited function cost management or security tool would be better. The cloud has several unique characteristics that influence finance management. To keep pace with the utility spending pay-per-use cloud model, infrastructure financial planning needs to shift from CapEx-based to OpEx-based.

The SAP Integration and Certification Center has certified that Snow Optimizer rel. Technology or infrastructure products that have SAP-certified integration with SAP NetWeaver have proven to interoperate with the technology platform. Oracle Cloud Infrastructure has again demonstrated strong growth, introducing hundreds of services and features over the past year. With all the challenges of a global pandemic, our teams continued to deliver on our product vision, and I’m both amazed and sincerely grateful. Cloud Management Platform should support self-service cloud fulfillment and administration capabilities.

In this digital age, you can now track countless data points surrounding your customers transactions and interactions with your business. Of course, analyzing this data for business value is both difficult and time-consuming. Cloud-based platforms give your team members the ability to create, edit, view, and share information easily and securely. Built mobility features enhance collaboration, allowing your team to connect on the go, through their mobile device.

Digital Operating Models

Cloud computing also provides the benefit of remote accessibility, helping cut down on commuter related emissions from your employees. Like many businesses, you may have hardware utilization issues when experiencing rapid growth – or huge seasonal capacity shifts. Costs can quickly mount if you’re unable to meet business demand or end up paying on on-premises services which are largely underutilized. When companies merge, challenges often arise due to the incompatibility of the different applications and technology landscapes. Especially if you need to consider managing these landscapes across multiple on-premises data centers.

For the CMP market in general, Gartner forecasts that by 2025, the percentage of enterprises using multifaceted cloud governance tools will be more than 70 percent, compared to less than 10 percent in 2020. The firm sees the CMP space as part of the larger cloud management platform and tools market, which is expected to continue growing at an estimated 20 percent compound annual growth rate through 2022. «This growth is, and will continue to be, hindered by more focused tools around key use cases and competition from native services,» Gartner said. Granular view of cloud usage via interactive cost analytics dashboards and holistic recommendations helps to optimize the cloud cost. With these foundational pieces in place, cloud cost management can become a core cloud capability that delivers tangible value to the business.

Trend: Gartner Magic Quadrant For Sam Managed Services 2020

We also showed how they could use QSM analytics to sanity-check the validity of project estimates at the release and enterprise levels. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. They also opt for a virtual services model, reducing reliance on physical products and hardware.

Software license management tools and processes in place that track and manage those limitations. Doing so ensures that your BYOL cloud usage doesn’t turn into a budget disaster. While it’s one thing for a business to predict great things for its future, it’s quite another for a respected, trusted analyst in the industry to predict great things for your industry…and your business. It’s also important to recognize that initial investments in cloud migration and optimization will create a negative ROI in the short term.

As the current SaaS market only accounts for approximately 20% of total enterprise software spending. With the majority of enterprise software spending still focussed on on-premise software solutions, SaaS vendors are turning to this market to entice businesses to a cloud setup. A hybrid cloud is where you opt to use a mix of both public and private cloud solutions.

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