80% of organisations intend to raise cloud spending next year: Infosys

Cloud used for growth and transformation is three times more important to companies, than cloud used to cut costs

Sixty-seven per cent of companies have upped their cloud spending this year, with 80 per cent planning to do so next year, according to the latest findings from Infosys Cloud Radar 2023.

The research underscores a move in cloud usage from simply storage and cost reduction to harnessing cloud technology for new capabilities. It's also being used to open new revenue avenues and to replace or update existing systems.

The study reveals that while investment in cloud will continue, less than half of the allocated funds are actually being utilised. This is not an immediate issue, but companies that don't fulfil their cloud contracts may face elevated costs as providers may revisit contract terms.

 

Conducted by the Infosys Knowledge Institute, the research wing of Infosys, Cloud Radar 2023 surveyed over 2,500 respondents from companies in the US, UK, France, Germany, Australia, New Zealand and Nordic countries.

The report indicates that just 47 per cent of current cloud commitments are being utilised, leaving over $300 billion in corporate cloud commitments untapped.

Cost remains a hurdle, with about 50 per cent of companies finding it difficult to manage their cloud expenditures. The complexity of cloud is evident, as 65 per cent of respondents are using three or four cloud vendors. This is a 75 per cent rise compared to those who used three or four vendors in 2021. In the last two years, the number of companies using a single cloud provider has fallen from 21 per cent in 2021 to just 7 per cent in 2023.

The report also finds that 43 per cent of companies have vague policies regarding who is authorised to deploy cloud resources. For nearly 45 per cent of companies, the decision on which cloud technology to deploy or how to manage compliance is made either by the IT department alone or solely by business leaders.

On a positive note, 73 per cent of companies agree that cloud migration is effective in achieving objectives, fuelling further interest and investment in cloud technology.

"As cloud continues to evolve, it's vital for companies to incorporate it as a strategic tool for growth and transformation. Utilising multiple cloud providers helps optimise resources, enhance resilience, and access specialised capabilities, leading to increased efficiency and faster growth," said Anant Adya, executive vice president of Infosys Cobalt.