TECH SUPPLIER Feb 2022 - IDC Survey Spotlight - Doc # US48833322

Private Cloud Costs and Optimization at the Top of Enterprises' List for 2022


Jevin Jensen

This IDC Survey Spotlight focuses on the top areas of investment for IT automation in on-premises private cloud? IDC defines a private cloud as having at least these five key attributes: self-provisioning, scalable, elastic, shared workloads, and consumption-based charges. Many enterprises are running private or hybrid clouds for critical workloads while simultaneously growing their use of the public cloud. This trend aligns with IDC research showing that 53.8% of enterprise workloads are still on premises. Therefore, enterprises should enable these five features at a minimum for their private cloud.

  • With IT groups pulled in many directions, they prioritize a specific handful of critical areas each year. The high responses of large enterprises (>45%) selected these three for 2020: cloud cost and transparency, capacity optimization, and log (cybersecurity) monitoring.
  • Enterprises consistently told IDC over several quarters their focus was on cloud costs and optimization of resources. As a result, IDC recently began tracking cloud cost transparency and published Worldwide Cloud Cost Transparency Software Market Shares, 2020: Product Innovation Drives Rapid Growth (IDC #US47034621, December 2021).
  • In addition, the rapidly growing area of observability came in a close third priority for large enterprises. In this case, log monitoring is the area of observability targeted for improving private clouds.
  • 44% of enterprises plan to increase spending on their private cloud, while 48% plan to keep spending steady, with only a small group of under 8% reducing private cloud investments. This spending level shows a healthy growth for on-premise clouds and shows they have an essential role in the future, even as public cloud expenditures grow faster.
  • IDC believes most enterprises will continually monitor their private and public clouds using best-of-breed tools until vendors expand and enhance multiple cloud monitoring and optimization tools.


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