Time for a wake up call: Enterprises are overspending by $24 billion on cloud. Plus, are alternative providers the fourth major public cloud?
Topline: Overprovisioning, overspending, oh my!
You might want to sit down for this—enterprises are wasting a whopping $24 billion in overprovisioned cloud resources. That’s half of the $48 billion total value of the global Infrastructure-as-a-Service market, according to 451 Research. The reason? One in three users consumes cloud via on-demand, hourly rates—the most expensive pricing option. “$24B comes from how much could buyers save if they moved from the average cost of a single provider to the lowest cost by mixing providers,“ says report author Owen Rogers.
By the numbers:
Leapfrog: Alternative clouds have jumped past the likes of legacy software providers to stake their position as the fourth major public cloud. Former tech darlings such as IBM and Oracle face an uphill battle to contend with the rapid growth of alternatives, which have gobbled up roughly one-third of all cloud spending as more organizations turn to them to meet their multicloud needs.
What you need to know:
Google Cloud Platform is slashing the revenue share it keeps from app purchases on its cloud marketplace from 20% to 3%. It’s a step towards clawing back the trust that’s slipping away as large hyperscalers’ shaky ethics start to show.
Skin in the game: Linode launched its new “Rise” program, giving startups an escape from the trappings of infrastructure credits. “Not every founder wants to give up equity in exchange for raising capital,” said Jonathan Hill, Linode vice president of revenue operations. “[Rise addresses] a serious challenge for pre- and early-revenue startups who often get locked-in to the big three cloud providers with the enticement of never ending infrastructure credits.”
In the Twittersphere:
David Linthicum, Chief Cloud Strategy Officer, Deloitte (@DavidLinthicum): Too many enterprises have multicloud and don’t even know it. Understand the patterns of multicloud adoption and which approach is the winner. #Multicloud #CloudComputing https://t.co/Cb7PY4FFmO?amp=1
Forrest Brazeal, Head of Content, Google Cloud Platform (@forrestbrazeal):You can take the people out of the data center, but how do you take the data center out of the people?