Managing Public Cloud Costs
Public Cloud services caught fire when COVID hit. All over the world, companies needed to shift their employees to remote work and needed to do it quickly and easily. Luckily, those are two of the top benefits of public Cloud services – they’re simple to use and fast to get up and running. This low technical barrier to entry paired with zero capital expenditure to get “spun up” makes public Cloud an attractive operating option. What is often not accounted for, however, are its costs over time.
Public Cloud’s variable expenses can become volatile and are often underestimated. Public Cloud is often seen as the lower risk, lower cost option when compared to more permanent solutions like private Cloud, but that cost difference often compares capital expenditure to operational expenditure – you can read more about Cloud types and their benefits in this recent blog. In the short term, public Cloud is the cheaper option. Month-over-month though, that is not the case; this year alone, end-user spending on public Cloud services is expected to rise 20.4% in 2022 to $494B, compared to $411B in 2021 according to Gartner. Over months or even years of higher unpredictable OpEx costs, investing in a more stable private Cloud build often outweighs the agility-focused benefits of public Cloud.
These benefits offered by public Cloud providers are focused on short-term benefits, and often have short-term pricing models to match them. In