Organizations globally are intensifying their utilization of public cloud storage solutions, allocating increased budgets to drive innovation swiftly. Why leverage cloud platforms? Well, companies gain scalability, flexibility and accessibility. This allows for the rapid deployment of innovative projects.

In fact, a new study by Wasabi Technologies (News - Alert), the 2024 Wasabi Global Cloud Storage Index, reveals a significant increase in organizations planning to expand their public cloud storage capacity in 2024. According to the survey, 93% of respondents intend to grow their storage, representing a nine-point jump from the previous year.

The desire for enhanced storage capacity is indicative of a broader strategic imperative among organizations to fortify their digital infrastructure to meet evolving demands and capitalize on emerging opportunities. It also reflects a maturing understanding of the pivotal role cloud technology plays in fostering resilience and adaptability amidst dynamic market conditions.

The surge in adoption of public cloud storage has undeniably transformed how organizations manage their data, offering flexibility, scalability, and accessibility like never before. However, amid this widespread embrace, the landscape is not without its hurdles, as underscored by the report. Despite the advantages, the report illuminates persistent challenges, particularly in managing costs effectively.

In 2023, more than half of surveyed organizations found themselves grappling with exceeding their allocated budgets for cloud storage expenditures. This budget overrun can be attributed predominantly to two key factors: unexpectedly high storage usage and the escalating trend of data migration to the cloud. Forty-two percent of organizations reported higher-than-anticipated storage usage, highlighting the difficulty in accurately predicting demand and provisioning resources accordingly. Additionally, 45% cited increased data migration as a contributing factor, indicative of the growing volume of data being shifted to cloud platforms.

These findings shed light on the importance of implementing robust cost management strategies and optimizing resource allocation to navigate the complexities of public cloud storage economics effectively.

With that said, looking ahead, the study indicates that cloud storage budgets are expected to rise further in 2024, with 90% of respondents anticipating an increase. This can be attributed, in part, to evolving data security, backup and recovery requirements. Notably, 95% of C-level executives surveyed agree that cloud storage budgets will rise this year.

“Results from this year’s Wasabi Global Cloud Storage Index show cloud storage use isn’t slowing down, in fact, many organizations are asking more of their cloud storage services; improved security, low-latency storage for frequently accessed data, and tools to improve data management,” said Andrew Smith, Senior Manager of Strategy and Market Intelligence at Wasabi Technologies, and a former IDC (News - Alert) analyst.

The 2024 Cloud Storage Index also found that nearly all organizations are adopting or planning to adopt AI and machine learning applications and services. However, they are taking a cautious approach by initially implementing these technologies for internal operations. Notably, generative AI is the most popular AI/ML workload, with nearly half of enterprises already using or planning to use it.

To summarize, the 2024 Wasabi Global Cloud Storage Index highlights the ongoing need for organizations to effectively manage associated costs and complexities even when cloud storage adoption is skyrocketing.