Growing Concern Over Cloud Spending
October 3, 2024
It's almost the end of the year 2024, and even through there's a big revolution around AI taking over the world, there's always the darker side of the moon with layoffs happening left and right.
Particularly, it is hitting hard at the companies in the tech industry and specifically those in high-tech who are already locked in with big cloud providers.
It's a helpless feeling, simply put, companies can't just unlock themselves from big cloud provider chains. I call this cloud potholes, where you find yourself stuck.
I call this cloud potholes, where you find yourself stuck.
Unchaining yourself cannot happen in just a matter of days, months or even years (remember those hefty upfront commitments you made).
Simply put, there needs to be a complete re-thinking of the way the cloud is taken as granted, until it shows its big pricey teeth.
Think Ground Up!
It's time to think from ground up, all the way from hardware up to the cloud, rather than head-first into the cloud, and get crushed by piling AWS bills, and stir it up with some customer churns, and then you have layoffs!
Fill that Cloud Pot hole, Fast!
It’s time to aggressively start filling up those cloud potholes, not by thinking by "let's reduce our cloud costs" but by making strategic planning around "how to get off cloud". Go with that mindset, and you will be already ahead of most.
For instance, one effective strategy that applies for many companies is to transition from cloud managed services to self-hosted solutions. Initially, this doesn’t necessarily mean investing in your own hardware; it simply involves moving away from managed services and taking on the management yourself. It's difficult - especially after having been sprinkled "magic cloud water" over everything - but it is certainly not impossible.
If it was easy, you wouldn't be drowning in cloud cost.
By addressing these common cloud pitfalls, you can minimize the negative impact on your company and focus more on innovation, and retaining your talented pool of employees, which you invested years to forge.
#1 - Hunt down for those low-hanging services running on the cloud, and turn them off. And turn it off twice; make sure it doesn't show up in your AWS or whatever cloud bill. Again, start with those that don't negatively impact your business. Start immediately on actionable item; get those dollar back, and gradually save more and more.
#2 - Break free from that managed services lock-in! Manage it on your own terms and within your own constraints.
Leverage in-house expertise
If you have in-house expertise, then you are all set to make your move off the cloud. For example, running your own cluster/services with open-source solutions; because if you closely observe, those managed service are actually a rip-off of open-source solutions.
It's certainly achievable with a dedicated team and with a culture that is committed to the goal of moving off the cloud. Otherwise, many will easily crack and will once again sprinkle that cloud water back in!
Make Informed Decisions!
Don't jeopardize your company by trying to saving on cloud costs or moving off the cloud. Ultimately, it's your company decision and how bad your customer churn rate is. If your company growth and revenue justifies cloud spending, then it's a dream world. Otherwise, for those who are struggle with layoff and not locking in those much needed customers, you have to take action right now!
Feel free to connect with me on LinkedIn and if you are in need of that extra kick with your cloud saving strategy.