Weekly CloudNews: Are We Spending Too Much on Cloud?


Welcome to this week’s edition of CloudBolt’s Weekly CloudNews!

Here are the blogs we’ve posted this week:

With that, onto this week’s news:

Cloud ‘sticker shock’ explored: We’re spending way too much

Joe McKendrick, ZDNet, June 26, 2021

“Cloud computing is probably the biggest business around these days — it has become a $100-billion-a-year industry. And there’s a chance companies are paying way too much for it. That’s the conclusion drawn by Sarah Wang and Martin Casado, partners with Silicon Valley powerhouse Andreessen Horowitz Capital Management, who say the costs of cloud on a business can be staggering. “While cloud clearly delivers on its promise early on in a company’s journey, the pressure it puts on margins can start to outweigh the benefits, as a company scales and growth slows,” they wrote in a recent analysis. 

Of course, cost savings is merely the early benefit of cloud, which is presumably subsumed by the flexibility and agility cloud resources provide. Wang and Casado acknowledge as much. ‘This shift is driven by an incredibly powerful value proposition — infrastructure available immediately, at exactly the scale needed by the business — driving efficiencies both in operations and economics. The cloud also helps cultivate innovation as company resources are freed up to focus on new products and growth.’”

Now is the Time for Businesses to Rethink Their Digital Transformation Strategies

Prangya Pandab, Enterprise Talk, June 28, 2021

“In the last 15 months, markets worldwide have changed significantly. The new business and digital resiliency paradigms, as well as the accelerating evolution of technology and data management methodologies, must be reflected in Digital Transformation initiatives.

According to a 2020 IDC research, by 2023, 75% of businesses would have comprehensive digital transformation (DX) implementation roadmaps, up from 27% in 2020. This will result in meaningful transformation across all aspects of business and society.”

Public cloud vs. private cloud: What’s right for your organization?

Dashveenjit Kaur, TechHQ, June 28, 2021

“The term cloud computing can be a broad umbrella spanning a range of classifications, types, and architecture models. This networked computing model has transformed how we work — if you’re reading this, you are most likely already using the cloud. But cloud isn’t one easily definable thing — cloud computing can be broadly categorized into a few general types comprising public cloud, private, hybrid (a combination of public and private), and even multi-cloud. But which to adopt for your organization when it comes to public cloud vs. private cloud, that can be a multi-layered proposition.

According to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, spending on public cloud IT infrastructure increased 13.1% year-on-year (YoY) in the third quarter of 2020 (3Q20), reaching US$13.3 billion. Meanwhile, spending on private cloud infrastructure increased 0.6% YoY in the same period to US$5.0 billion with on-premises private clouds accounting for 63.2% of this amount.”

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