Tech layoffs continue, but is the cloud industry taking a hit? 🤔 Keep reading to find out what happened in the cloud world last month.
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Story of the Month
Gartner Sees The Light On Reserved Cloud Capacity
The 2008 financial crisis and following recession inspired many cloud migrations in search for savings.
But this time around – as John-David Lovelock, distinguished vice-president analyst at Gartner argues – the cloud is actually becoming more expensive, driven by inflation and energy price spikes.
Many companies get themselves locked into long-term subscriptions with upfront payments in exchange for hefty discounts.
But Lovelock warns that if the cloud service pricing increases, these upfront payments may no longer cover the full term of the cloud subscription.
This is just one of the many dangers of reserved cloud capacity.
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The Cloud in Numbers
Layoffs Accelerate Among Billion-Dollar Investments
Source: Yahoo Finance
6% – that’s the chunk of Google workforce let go in January 2023. Compare this to Microsoft’s 5%, Amazon’s 6%, and Meta’s 13% in recent deep cuts.
$10 billion – this is how much Microsoft poured into OpenAI, the company behind ChatGPT that brought generative AI to the limelight this year.
45% – this is part of Kubernetes clusters running in the cloud, a jump from 31% in 2021. Cloud-hosted Kubernetes is set to overtake on-premises deployments in 2023.
$591 billion – the worldwide spending on public cloud in 2023 as forecasted by Gartner, a 20.7% uptick from 2022’s $490 billion.
29% – that’s how much of Ireland’s electricity data centers will consume by 2028.
$35 billion – the size of AWS’s investment into its Virgina data centers by 2040.
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The Business of Cloud
Finding Balance in the AI Hype
Organizations need to take a long hard look at the value of cloud-based AI. It’s so easy to face cloud budget overruns when playing around with AI models.
Source: InfoWorld
Speaking of cloud budgets gone wild, here’s a story of how one AWS bill went from $0 to $12,989.60 overnight – to the owner’s surprise. 😱 Spoiler alert: this story has a happy ending.
Source: The New Stack
An analysis of how Liberty Mutual saved c. 20% on cloud expenses by deploying FinOps strategies.
Source: CIO Dive
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Security & Outages
There’s Space For ChatGPT Here, Too!
Orca Security announced a ChatGPT extension to process security alerts and helps users by sharing step-by-step remediation instructions. That was fast! ⚡
Source: Orca Security
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Brought to you by CAST AI
CAST AI helps engineers to fully automate Kubernetes and reduce their cloud costs by 65% on average. The platform was created for DevOps teams to save time, eliminate manual tasks, and gain full visibility into their Kubernetes costs and security.
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