Home Cloud storage budgets EMEA, busted by fees

Cloud storage budgets EMEA, busted by fees

March 6th – In Europe, cloud storage costs have taken an outsized bite from budgets, with usage fees eating up a significant portion of allocated resources. More than 50% of EMEA-based firms spent more than intended on cloud storage in 2023.

Nonetheless, according to new research, many EMEA organizations are looking to expand cloud storage portfolios. Due to the appetite for ‘cloud-first decision making’, organizations will likely continue to spend more than they’re really comfortable with in order to keep up with operational expectations.

Surging cloud costs

One of the factors behind both the cloud cost increase and the general business focus on the cloud portends to the rapid growth of artificial intelligence.

Ninety-six percent of survey respondents in EMEA anticipate new cloud storage concerns associated with AI and machine learning.

Within this domain, professionals expressed concerns about needing to store data across a wider range of locations, implementing robust mechanisms for data backup, protection and recovery and new or expanding storage migration/movement requirements.

Ahead of global markets

In terms of its commitment to a ‘cloud-first’ strategy for IT services adoption, Europe is seen as marginally ahead of other global markets. The focus is on public cloud. On the whole, the region is less likely than others to continue pursuing private cloud or on-prem IT infrastructure.

Frustration with fees

Recent research has, as noted earlier, suggested that the trend of off-prem cloud storage is being driven by the AI explosion. However, the mood has been soured by growing dissatisfaction with exorbitant fees and cloud lock-in among EMEA companies.

The latter will prove a navigational challenge for cloud-first organizations in the EMEA region throughout 2024.

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