Issues surrounding rising costs have come to the forefront of the current state of cloud services. In a study we recently conducted, we spoke with over 500 tech professionals utilizing the hyperscalers about the cost of cloud usage and how perceptions have changed over the past year.
ITBrief covered the results from this survey in their recent article with insights on how users of the Big Three hyperscalers have seen an increase in their cloud costs over the past year:
The escalating costs and uncertainty of the cloud have forced users to reconsider and take decisive action. About 57% of hyperscaler users reported attempts to manage or reduce their cloud service costs. The most popular method adopted was the implementation of internal cost-saving strategies or practices (79%), followed by the deployment of software tools designed for cost optimization (58%). Notably, a significant portion of respondents (28%) admitted to hiring consultants specializing in cloud cost management.
This data was presented during Civo Navigate North America 2024 in a keynote session from Mark Boost, whereby he sparked a conversation about the financial implications of cloud usage and shifting perceptions over time:
Another core statistic that was outlined during this session was the need for more cost transparency, with 42% of businesses finding it challenging to predict their monthly cloud expenditure. Alarmingly, more than a quarter of those surveyed received unexpectedly high bills, calling into question the promises of cost-effectiveness once associated with cloud services.
Reflecting on the findings, Mark Boost, remarked, "The cloud is broken," pointing to the failure of major cloud providers to maintain low costs at scale. This situation poses particular challenges for smaller businesses and underscores the need for a shift towards more equitable, transparent, and customer-focused cloud solutions.
If you’re interested in learning more about this topic and our study, check out the ITBrief article, here.