Traditionally, cloud servers have been paid for according to the levels of capacity provisioned; if you run a 4GB server, then you pay for a 4GB server, regardless of whether that capacity is being used. The study found that businesses use just half (51 per cent) of the capacity they provision over a 24/7 cycle. As a result, customers are effectively paying twice as much as they should be for the capacity they are using.
When looking at the reasons behind this overprovisioning, 90 per cent of respondents said they see overprovisioning as a necessary evil in order to protect performance and ensure they can handle sudden spikes in demand. However, despite this overprovisioning, performance is still suffering. Many companies are unwilling to pay extra for capacity that they only use a small amount of the time: 88 per cent of CIOs admitted that they often sacrifice peak performance in order to keep costs down.