Dow 10,000? How about Egress 8,000%? Plus, why cloud talent’s brain drain is keeping some firms out of the cloud.
Topline: Egress charges could be going extinct
Hyperscalers are feeling the heat on cloud costs. As users flock to multicloud ecosystems and providers go on the offensive on pricing, the Big 3 now face growing pressure to rethink their billing models. As a result, data egress fees, charges that customers typically incur when taking data out of cloud platforms, could be headed the way of the Dodo. “The whole point of egress fees was to lock up your data and make it hard for you to extract it, move it someplace else,” says Gartner research VP Adam Ronthal. But it won’t be long before market forces conspire to eliminate data egress fees altogether, Ronthal says. Until then, there are other ways for those seeking greater pricing transparency to see how much cloud truly costs.
By the numbers:
Is the skills gap keeping firms out of the cloud? The number of unfilled cloud computing jobs has increased by 94% since 2017 as businesses big and small duke it out to attract scarce engineers and expand their cloud footprints. “It’s absolutely brutal,” says Emil Eifrem, CEO of cloud database company Neo4j. “Any company is always constrained by something, and our constraint is engineering talent.”
What you need to know:
The other shoe has dropped: Legacy software-makers VMWare, Dell and Nvidia are getting into the multicloud game, announcing several new services to boost multicloud usage. “The future of digital businesses is multi-cloud,” says VMware’s new CEO Raghu Raghuram. “That fundamentally is the trend that we’re seeing with our customers.”
As banking giants rush to the cloud and the battle for industry-specific cloud supremacy rages on, cloud providers are introducing new offerings aimed at financial services firms. Sector-specific clouds are more than a marketing ploy, since certain industries demand more distinct services to streamline cloud complexity, security, compliance and more—especially in finance where deep pockets drive cloud spending.
In the Twittersphere:
Mathew Ingram, Chief Digital Writer, Columbia Journalism Review (@mathewi): According to Cloudflare – which is moving in on Amazon’s AWS turf – the latter has a profit margin on data “egress” (or export) that is close to 8,000 percent: https://t.co/Wmt58DvokJ?amp=1
Corey Quinn, Cloud Economist, Duckbill Group (@QuinnyPig):Yes. THIS is what sensible multi-cloud looks like.