After an initial euphoric rush to the cloud, administrators are questioning the value and promise of the tech giants’ services. According to a report published by UK cloud outfit Civo, more than a third of organizations surveyed reckoned that their move to the cloud had failed to live up to promises of cost-effectiveness. Over half reported a rise in their cloud bill. By Richard Speed.
In the IT world, there is an expectation that bang for buck increases as time goes by, but in this example, prices are rising faster than the rate of inflation, and what customers receive for their money remains unchanged. Cost control, based on operating datacenters at massive scale, was part of the early sales pitch and in the intervening 15 years, it had proven out – cloud product costs were stable, and either went down in price or more features were added at the same price.
So, are prices increasing? The answer has to be yes. How much of those rises are down to the major vendors opportunistically adding of a few percentage points versus an increase in fixed costs, such as electricity, is pretty much irrelevant. The advice remains the same: the cloud is here to stay although its luster has dulled over time. Interesting read!
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