Cloud Spending to Reach 47% of Technology Budget for SMEs in 2022 Finds Report by Zesty

TEL AVIV, Israel, Feb. 10, 2022 /PRNewswire/ -- Zesty, a provider of AI-driven cloud management technologies for real-time optimization, today published a new report entitled, Scaling for Success: What's Driving Technology Executives in 2022? The report, aimed at assessing the current challenges facing companies utilizing the cloud, is based on a survey of 100 CIOs and CTOs in the US and UK who are charged with managing multi-cloud or hybrid cloud environments for their organizations, which spanned between 250-1000 employees. 

Despite widespread adoption of cloud services and the critical role these resources play for businesses, 58% of respondents viewed the search for the best cloud offering to match their workload needs as the most difficult element of managing cloud costs. Similarly, 42% of CIOs and CTOs surveyed identified appropriate resource utilization as their top challenge. This difficulty has led to a 67% annual increase in the portion of the company's technology budget allocated to cloud services, from 29% in 2021 to 47% in 2022. 

"There are many challenges facing today's CIOs and CTOs, and the cloud, which was built to ease their burden, has created plenty of new complexities," said Maxim Melamedov, Zesty CEO and Co-Founder. "The central role the cloud plays in business continuity means these hurdles must be dealt with consistently, requiring not only a large budget, but dedicated personnel as well. We found that while companies are aware of the issues, only 29% of them have a fully baked strategy to handle them - leaving the future for many very cloudy indeed." 

Other key findings in the report include: 

• Cloud spending is going to skyrocket in 2022: The average cost of public cloud services per month is expected to increase by 67% between 2021 and 2022. At that rate, organizations will likely be allocating more than half of their technology budgets to the cloud by 2023.
• Organizations are creating significant cloud waste: 42% of CIOs and CTOs reported resource utilization as the top cloud challenge today. Overprovisioning combined with an inability to scale quickly often leads to such waste. 
• The top driver for using multi-cloud or a hybrid strategy is security (59%): CIOs don't want to rely on a single vendor's security protocols and feel their data is safer in a multi-cloud environment. Close behind (56%) are the specialized technological advantages offered by a specific cloud provider, such as AI. Cost efficiency came in third at 39%.
• Cloud priorities are shifting: According to 42% of respondents, the #1 cloud priority pre-pandemic was security investments, but with the financial hit that many organizations took due to COVID-19, this has since dropped to 4th place (18%) for the next 12 months. It has been replaced by revenue-related goals such as aligning speed of IT delivery with speed of business (25%), ensuring compliance needs are met (22%), and increasing direct revenues (20%).

The full report can be found here.

About Zesty

Zesty is the world's first AI-driven cloud management technology company that auto-scales cloud resources to fit real-time application needs. As today's cloud environments become increasingly dynamic, Zesty's automation increases cloud efficiency, improves DevOps productivity, and reduces cloud costs with zero human input. As a result, DevOps engineers no longer need to spend time on repetitive and mundane infrastructure management tasks and can enjoy the cloud's flexibility and scalability without worrying about cost or performance concerns. Zesty was founded in 2019 in Tel Aviv and is used by leading organizations such as Armis, Gong, Yotpo, and others. For more information, visit Zesty.co.

Zesty Media Contact

Raanan Loew
[email protected]
US: +1-347-897-9276

SOURCE Zesty