What? Cloud Computing Costs Cut from Business Budgets
July 18, 2024
Many companies offload their data storage and computing needs to third parties aka cloud computing providers. Leveraging cloud computing was viewed as a great way to lower technology budgets, but with rising inflation and costs that perspective is changing. The BBC wrote an article about the changes in the cloud: “Are Rainy Days Ahead For Cloud Computing?”
Companies are reevaluating their investments in cloud computing, because the price tags are too high. The cloud was advertised as cheaper, easier, and faster. Businesses aren’t seeing any productive gains. Larger companies are considering dumping the cloud and rerouting their funds to self-hosting again. Clouding computing still has its benefits, especially for smaller companies who can’t invest in their technology infrastructure. Security is another concern:
“‘A key factor in our decision was that we have highly proprietary R&D data and code that must remain strictly secure,’ says Markus Schaal, managing director at the German firm. “If our investments in features, patches, and games were leaked, it would be an advantage to our competitors. While the public cloud offers security features, we ultimately determined we needed outright control over our sensitive intellectual property. "As our AI-assisted modelling tools advanced, we also required significantly more processing power that the cloud could not meet within budget.”
He adds:
“We encountered occasional performance issues during heavy usage periods and limited customization options through the cloud interface. Transitioning to a privately-owned infrastructure gave us full control over hardware purchasing, software installation, and networking optimized for our workloads.”
Cloud computing has seen its golden era, but it’s not disappearing. It’s still a useful computing tool, but won’t be the main infrastructure for companies that want to lower costs, stay within budget, secure their software, and other factors.
Whitney Grace, July 18, 2024
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