Are Cloud Computing Prices Causing Your Budget to Nosedive?
The cloud is not what it once was. A few years ago, the cloud was considered the remedy, offering limitless computing power and storage for a small monthly cost. Nowadays, people view the cloud as a necessary evil – a place to store data and applications that are too resource-intensive to function locally. In recent years all the major cloud providers have announced hikes in cloud computing prices that have increased expenses by twofold. In this article at BizTech, Joel Keller discusses the inflation in cloud computing prices.
Recent Hike in Cloud Computing Prices
One of the major cloud platforms hiked its price for some of its services this year. In some locations, data requiring access at least once per month will cost 50 percent more starting on October 1, 2022. This is up from 1 cent per gigabyte per month to 1.5 cents. Even though it might not seem like much, those gains can be substantial for businesses with hundreds of terabytes of data stored in the cloud. Adding to the overall rise in cloud computing spending. For instance, Synergy Research discovered that between 2019 and 2020, investment in enterprise cloud computing infrastructure increased from $100 billion to $130 billion.
Reasons for Inflation in Cloud Computing Prices
One reason for inflation is the increase in energy prices, which affects transportation and power expenditures. Another concern is the supply chain. Taiwanese semiconductor manufacturers that supply most of the hardware components for cloud infrastructure services are still coping with supply chain concerns. Given that Taiwanese companies create 66% of the world’s chips, supply chain delays significantly impact hardware prices.
Additionally, cloud waste results from overestimating the number of cloud resources a project requires. Cloud waste encompasses issues including planning a project’s timeline too far in advance, over-provisioning resources, and a general lack of maintenance and optimization. This applies particularly to data and projects that do not require active storage and use a lot of CPU power.
Furthermore, the author elaborates on helpful tips for reducing cloud computing prices.
To read the original article, click on https://biztechmagazine.com/article/2022/11/how-trim-costs-reducing-cloudflation
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