Even as enterprises embrace the cloud to become more agile, the transition poses a number of new challenges. The Flexera 2021 State of the Cloud report released today highlights many of those top issues, ranging from complexity to governance and security.

Flexera, which sells cloud optimization tools, surveyed 750 cloud leaders from small, medium, and large enterprises. The report shows cloud growth across every segment, which tracks with the conventional wisdom that more companies are moving away from on-premise IT.

But it also puts a spotlight on some of the growing pains.

For instance, 92% of enterprises have a multicloud strategy, and 80% have a hybrid cloud strategy, suggesting a need to manage complexity across different clouds. On average, the survey found companies using 2.6 public clouds and 2.7 private clouds.

Above: The Flexera 2021 State of the Cloud

Among the top challenges, 81% of respondents listed security, 79% said cloud spending, and 75% cited governance. Following rapid adoption during the pandemic, 61% said optimizing cloud costs this year is a top priority.

Indeed, the survey found executives believed that 30% of cloud spending had been wasted.

None of this is fatal, of course. In fact, these problems have created a boom market for companies that make tools to help solve issues such as cloud security. The Flexera report notes that spending on multicloud management tools rose 9% last year.

But finding ways to better manage the shift to the cloud will take on greater urgency as budgets increase. If IT executives feel they can’t fully leverage these investments, adoption could slow.

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