5 Types of AWS Optimization Lyft is Already Using for that $300 Million Cloud Bill

5 Types of AWS Optimization Lyft is Already Using for that $300 Million Cloud Bill

AWS optimization might be on your mind if you saw last week’s headlines that Lyft has committed to spend $300 million with Amazon Web Services (AWS) over the next three years. This information was revealed in Lyft’s IPO prospectus, filed last Friday.

Lyft isn’t the first startup to generate attention from its massive public cloud bills – Snap and Spotify’s Google Cloud bills are just two other examples.

And this level of spend is no surprise, either. Lyft was born and scaled to “unicorn” status in the cloud, from the first three EC2 servers that powered their first ride to the massive infrastructure of microservices that now powers the ride sharing giant. The question is, how do they use those resources efficiently — with a mindset of AWS optimization?

How Lyft is Already Optimizing AWS

Several case studies from AWS as well as an AWS press release put out last week tell us how Lyft is already using cloud services – and give us insight into how they’re already well-versed in AWS optimization.

1. Commitment

The fact that Lyft has such commitments at all tells us that they’re taking advantage of AWS’s Enterprise Discount program – as we would expect for any company with that scale of infrastructure. An EDP is a private agreement with AWS with a minimum spend commitment in exchange for discounted pricing – a smart move, as Lyft anticipates no slowing down in its use of AWS.

2. Auto Scaling

When you learn that Lyft does eight times as many rides on a Saturday night as they do on Sunday morning, you realize the importance of auto scaling – scaling up to meet demand, and back down when the infrastructure is no longer needed.

3. Spot Instances

AWS has a published case study with Lyft about their use of Spot Instances – AWS’s offering of spare capacity at steeply discounted prices, which are interruptible and therefore only useful in certain circumstances. By using Spot Instances for testing, Lyft reduced testing costs by 75%.

4. Microservices Architecture

Lyft runs more than 150 microservices that use Amazon DynamoDB, Amazon EKS, and AWS Lambda — allowing individual workloads to scale as needed for the myriad processes involved in the on-demand ride sharing service.

5. Pre-Built Container Configuration

In addition to Amazon EKS, Lyft uses Amazon EC2 Container Registry (ECR) to store container images and deliver these images to test and deployment systems. They likely have a good start on the battle for container optimization, though in general, this market will mature greatly this year – so it’s something they’re sure to continue to optimize.

Things Lyft Needs to Do to Keep their Infrastructure Optimized

The case studies and press releases mentioned above, as well as Lyft’s own engineering blog, give some insight into their tech stack and processes. Beyond that, there are several things they may well be focusing on, that we would highly recommend as they continue to scale (and IPO):

1. Governance

Many cloud customers we talk to name governance as their top priority. Automated policies and user roles are key for ensuring that no one can spend outside their bounds. Sometimes, it’s as simple an idea as proper tagging – but one that can set automated processes in motion to assign resource access to team members, proper on/off schedules for non-production resources, and configuration management processes.

2. Resource Rightsizing

Our recent research showed that average CPU utilization for the instances in our data set (which leaned non-production) was less than 5%. Given that going one instance size down can save 50% of the cost, and two sizes can save 75%, this is a huge area for optimization that we recommend cloud users of all sizes focus on this year. At Lyft’s scale, this will require automated policies to resize underutilized resources automatically.

3.  Continuous Evaluation of Microservices

With 150 microservices, blanket policies won’t apply to all cases. Each microservice needs to be evaluated against newer AWS offerings and cost control techniques on an individual basis. Once each of the 150 has been evaluated, it’s time to go back to the beginning of the list and start again — a mindset of continuous cost control would serve them well.

Lyft has gotten this far built and grown on AWS — and their “culture of cloud” has enabled the growth in platform adoption that has brought them to the brink of IPO. One thing is clear: up to this point, growth at any cost has been the goal. That means that the mere amount of cloud spend has not been of huge concern. As they transition into being a public company, margins and profit will start to matter more, which will bring costs into focus. It will soon be important for Lyft to continually optimize infrastructure – in the cloud and across the board.

5 Priorities for the Cloud Center of Excellence

5 Priorities for the Cloud Center of Excellence

One of the terms we have been hearing used more often when talking to prospects and customers alike is Cloud Center of Excellence (CCoE). DevOps, CloudOps, Infrastructure and Finance teams are joining together to create a cloud center to improve cloud operations in the enterprise. These are also known as a Cloud Command Center, Cloud Operations Center, Cloud Knowledge Center, or perhaps Cloud Enablement Team.

Essentially, a CCoE brings together a cross-functional team to manage cloud strategy, governance, and best practices, and serve as cloud leaders for the entire organization.

Who Needs a Cloud Center of Excellence?

When we talk to prospects and customers that have adopted a CCoE, there seem to be a couple of common themes:

  1.  Cloud-centric organizations where the DevOps, Security and Finance teams want to ensure that the organization’s diverse set of business units are using a common set of best practices, as no one wants the wild west for cloud management
  2.  Large organizations who are now multi-cloud and they need to standardize on a set of tools and processes that work across the CSPs for security, governance, operations and cost control
  3.  MSPs who are developing cloud centers focused on creating best practices for their customers, for both single and multi-cloud; for example, you would have an Azure Cloud Center of Excellence (ACCoE) or a Google Cloud Center of Excellence (GCCoE)

For more, see this presentation from Zendesk and CloudHealth from AWS re:Invent 2018 to understand how a large, cloud-centric organization leverages the CCoE concept to improve governance and operational efficiency.

What Should the Cloud Center of Excellence Prioritize?

No matter why you have established a cloud center within your organization, there are a few important priorities in order to make your effort a success:

  1. Interdepartmental Communication — the CCoE serves as a bridge between departments that use, measure, or fund cloud operations. All of these departments and stakeholders need to be on the same page about goals, timelines, and budgets for cloud operations, which is the entire idea of establishing a CCoE.
  2. Technology Expertise — as a resource and driver of innovation throughout the organization, it is imperative that the CCoE are the experts on the cloud technology used in the organization. Given the rate of innovation by the cloud providers, this requires dedicated time and effort.
  3. Governance — there are two major elements important for governance: authority and standardization. In order for the CCoE to be effective, it needs to be granted authority to set policies and standards for cloud security, compliance, and cost control — with the expectation that people throughout the organization will follow these policies. Once that authority is held, the CCoE needs to set, communicate, and enforce the policy standards as an initial priority.
  4. Repeatability and Automation — once policies are established, it’s time to make deployment processes repeatable with reference architectures, and to get tools and platforms in place for governance and cost control.
  5. End-User Buy In – we all know that if a developer doesn’t want to do something, it’s pretty likely they’re not going to do it. Developing a sense of, if not excitement exactly, but engagement, is important for your new structure to succeed. Several of our customers with cloud centers regularly host tech talks, brown bag lunches, and other learning experiences to promote buy-in and adoption of tools and processes.

Call it What You Want: A Dedicated Effort is Key

Maybe Cloud Center of Excellence is too cheesy a phrase for your taste. What matters is cross-departmental collaboration and standardizing a plan for cloud migration, growth, and management.

Is your organization using a Cloud Center of Excellence model? How’s it going? We’d love to hear in the comments below!

Review of the AWS Right Sizing Tool: Helpful or Clunky?

Review of the AWS Right Sizing Tool: Helpful or Clunky?

Amazon Web Services (AWS) provides a treasure trove of documents and CloudFormation templates in their AWS Solutions portal, including AWS right sizing, the AWS instance scheduler, a chatbot framework, and more. These solutions can be used as-is for immediate integration into your existing environment, or can be the starting point for developing your own unique toolsets. Today, we’re reviewing the AWS Right Sizing tool to see how much it can help you optimize your infrastructure.

AWS Right Sizing: What It Does

AWS offers a variety of types and sizes of EC2 instances. That means that it’s perfectly possible to select an instance type that’s too large for your actual needs, which means you’ll be paying more than necessary. In fact, the data shows that this is happening most of the time. The AWS Right Sizing tool exists to help users find the correct instance size to meet their needs at the lowest cost.

The tool uses a CloudFormation template that deploys infrastructure and scripts needed to make right sizing recommendations for your AWS account. This infrastructure includes an EC2 instance that will run python scripts, a 2-node Redshift cluster for the right sizing analysis, and an S3 bucket for the raw CloudWatch data and the final CSV output. The total cost of this deployment in the us-east-1 region is $0.65 per hour.

The basis of the right sizing logic is to look at the Max CPU from the past 2 weeks of CloudWatch data for each EC2 instance. If the max CPU is above 50% at any point, then it will not recommend a change, but if it is always below 50% then it will attempt to find the cheapest instance size that matches the I/O, memory, network, and at least the max CPU that was found. The final output is a CSV file that includes information about the existing instance sizes, the utilization of those instances, the recommended instance size, and the cost saved per month.

Worth the hassle?

Based on the logic above, the AWS Right Sizing tool does a very basic level of recommendation for instance sizing. There are a few scenarios where these recommendations may not be helpful, such as applications that are memory-intensive or cases where the instance needs to be a larger size than it currently is. The tool also only spits out a CSV with the recommendations, which means you still have to make decisions and take actions based on those recommendations. The CSV file looks like this:

If those recommendations don’t seem to fit what you’re looking for, the nice thing is they offer the full stack, along with all scripts and CloudFormation templates, as an open-source repository. This means you can take the core of the recommendation engine and tweak it to follow your own logic for customized recommendations, or even use it to trigger the resizing of the instance. AWS also offers Trusted Advisor as a part of their Business-level and Enterprise-level support plans, which can offer right sizing recommendations in real time (amongst other health checks and recommendations).

Overall, this AWS right sizing tool can either be a useful check-up tool for your environment, or the basis for your own cost-optimization initiative, but many users will want a more out-of-the-box automated solution for this.

Since changing server sizes and timing this with maintenance windows can be a hassle, ParkMyCloud has introduced a feature to automate the resizing of your EC2 instances. Interested? Check it out with a free trial.

Interview: Workfront Teams Around the World use ParkMyCloud to Optimize Costs & Simplify Multi-Cloud Management

Interview: Workfront Teams Around the World use ParkMyCloud to Optimize Costs & Simplify Multi-Cloud Management

Workfront is using ParkMyCloud as their go-to solution for cloud cost control, in addition to multi-cloud management and governance benefits they gain from using CloudHealth. We talked with Randy Goddard, Senior Systems Engineer, about how ParkMyCloud came at the “perfect time” and why he sees it being implemented company-wide over the next 6 months.

Randy, thanks for chatting with us. Can you start by telling us about Workfront, what the company does, and your role in the organization?

Workfront is a category-creating company with a platform centered around work management. We enable people to do their best work and to make it matter. If you think of a system of records, like Salesforce as a system of records for customer contact, or HR as a system of records for employee information, Workfront is a system for operational work.

My role began 5 years ago as a traditional systems engineer and over the last 3 years I have moved into a cloud governance role as we made our transition from data center to cloud services. In my cloud governance role I’m third down from the CTO, reporting to the infrastructure manager.

What public clouds are you using – and how many people at Workfront are using the cloud?

We are multi-cloud, using both AWS and Google Cloud Platform for different workloads — and we have about 200 Workfront employees using these two clouds.

So, you use CloudHealth. Tell us about your experience with their multi-cloud management platform – how did you get started and how does it help you?

We’ve used CloudHealth for roughly 2.5 years. Other members of them team piloted and demoed it to us. They left the company shortly after, so I picked it up right after it was introduced and went on to be part of the implementation.

We use CloudHealth for overall governance of all our cloud services. The benefit is the clear visibility into who is running what, where, and what it costs. The side benefits include rightsizing, security notifications, budgeting, and monitoring, in addition to the major benefit of visibility over resources.

How did you learn about ParkMyCloud?

We learned about ParkMyCloud through CloudHealth, actually. A colleague and I attended a webinar in which they talked about automation and the concept of shutting down of resources, introducing ParkMyCloud as the partner solution to accomplish that.

It was perfect timing, really. Just at the moment that CloudHealth and ParkMyCloud partnered and the information was provided in this webinar, one of our busiest units had started working on a homegrown solution. When we became aware of what ParkMyCloud could do, we were in the middle of looking for a solution ourselves, considering build versus buy and determining cost-benefit analysis. We saw the webinar that week, saw the benefit and the cost associated and thought  – why would we build our own for the cost that we could get ParkMyCloud?

Was there any pressure from outside of your department to bring cloud costs down?

Since starting on the cloud journey, I have been very well aware of the cost, as has the cloud engineering team. We were really the ones that felt a sense of urgency and paid mind to the actual costs. Outside of this small group, there was a common misconception that the cloud is just free, and there wasn’t an awareness of the need for insight, diligence, and regimen in our cloud environment.

Our team was at the forefront of demonstrating to the business that we need a solution for turning resources off when not using them. We knew we needed to get ahead of costs as they climb and climb and climb, especially in developer environments where resources aren’t required to be on 24/7 and can be oftentimes left unattended for weeks on end. It made a lot of sense to adopt the ParkMyCloud model, pilot it, get it running, and show the business how easy it is to maintain that type of environment.

Funny that you mention the misconception of “it’s free – it’s cloud” – what do you think contributes to that mindset?

I think it’s the migration from traditional data centers in a product-oriented environment or a feature factory. The initial outlay and capital expenditure of buying hardware for a data center is traditionally the only insight that an organization has into how much things cost. But once that capital expenditure is made, the ongoing operational costs are completely obfuscated.

The beauty of cloud is the visibility into how much things actually cost to run. If we want to create widget X, we can now associate direct costs to the infrastructure resources involved into supporting that widget. We never had to pay attention before, but now we have this model where there is free reign in the data center, you get the keys, and you can do what you want. At the same time, there’s a budget associated with all of that and guess who’s in charge? You are. It raises that level of knowledge and awareness that it isn’t just dev costs, it isn’t just the widget, now it’s infrastructure that we have to start paying attention to and architecture around that.

How has your experience been with ParkMyCloud so far?

After a demo, we started a trial and put it to use with cloud credentials for an AWS account that had a lot of development resources. We let the tool model the usage patterns of those resources. After it had enough usage data, we went in to see how automated the process is to spin resources down and back up, and how the scheduling works.

After ParkMyCloud had been running for a couple of weeks, we saw that 7 out of 8 environments with these cloud credentials could be completely shut off for at least 12 hours a day. Because of that, and applying ParkMyCloud to all our enterprise accounts across just the USA, we saw that we could really save a lot of money.

How much are you saving with ParkMyCloud? Any estimates of how much you will save?

The piloting we just did was specifically with automated policy. We set is so that any cloud credential that has ‘-dev’ in the name would be turned off at 7PM our time, and turned on at 7AM. From adding our one cloud credential to see if it could really shut off everything without having to specify the resources by policy, we saw that sure enough it did what we needed it to do and flawlessly. As new things are spun up in that account, they’re shut off at night and turned back on in the morning.

Once we added all of our cloud credentials, we used data from ParkMyCloud’s recommendation screen and our own cost-benefit analysis to present our leadership a safe estimate of $200k in savings a year, but I wouldn’t be surprised at all if it ends up being more. Anytime you can show a cost-benefit analysis with a tool or a resource – that’s solid data you can bank on.

How many teams are using the tool now, and how many could be implementing them in the future?

The cloud engineering team was the poster child and right now we have 2 full teams. Another I am going to run through with next week, making 3 total. That team is probably where we will see some of the greatest savings.

Our implementation is ongoing. We recently presented ParkMyCloud and CloudHealth at a company-wide internal product user conference. We participated as individual contributors to demo how we were using the tools that could enable us to be cloud stewards around our cloud spend, prompting a lot of discussion and interest. We walked interested teams through all of our documentation around the tool, providing them with a short onboarding session.

Across the entire product organization, we have 25-30 teams that will be implementing ParkMyCloud.

How are you using ParkMyCloud’s automation functionality?

We’re making good use of SmartParking. One clear benefit is that you can go in and tune your settings to your environment, and once the analysis has been done on your resources, those come up as potential “smartparking recommendations”. It’s kind of a no-brainer – “yeah! turn these off at this time.” We do have some full, customer-facing production accounts that need to stay on, and we can’t spin those down at night, but the other 80% can and should be evaluated with SmartParking.

Another side benefit is that when we onboard teams with ParkMyCloud, the side discussion is always about rightsizing. We can look at the heat map through those SmartParking recommendation settings and see that it doesn’t really make sense to have this m42xl running 24/7 when it only gets hit certain times of day and max CPU is only going up to 35% – now we can have that rightsizing discussion around resources, opening a dialogue and providing data points. I have also heard some rumblings about automation around rightsizing and we look forward to utilizing that through CloudHealth and ParkMyCloud.

Are you using any other of our tools and features like the Slack integration?

Yes, we do use Slack. In fact, we had been using it since we turned ParkMyCloud on for our development account, and every night we see the report about which resources are spinning down and each morning which ones have been turned back on.

Do you use any other tools or processes in addition to CloudHealth and ParkMyCloud?

No other tools to control costs. We got started with CloudHealth so early on in our journey that I can’t see anything better, even AWS in providing their own dashboard and cloud-native tools hasn’t compared to the reporting, flexibility, and visibility across all of our accounts like CloudHealth does – and that doesn’t provide multi-cloud management. There aren’t any other tools that we have had to use or employ to get the information that we need.

Now we’re excited to be using ParkMyCloud. We were initially attracted to it because you chose to do one thing and do it well. You’re branching out now, with a couple of more things like rightsizing, which you will also do well instead of trying to do a broad spectrum of things poorly or mediocre. That’s what got us – it fits what we need to do.

That’s great to hear. Anything else you would like to add?

This is the beginning of a very good partnership. We have gotten great response and visibility into support and development around the product. I know when I see a problem and I throw it to the ParkMyCloud support team, I always get quick feedback.

That and the obvious: a lot of cloud customers will realize right off the bat that proper governance is not easy. You can’t go into being a cloud user thinking that it’s going to be cheaper or clearly visible, especially with the complexity of adding multiple accounts and then complicating it with multi-cloud management. You’ve got to employ tools that allow you to gain visibility into and management over those resources. Without ParkMyCloud and CloudHeath, we wouldn’t have that.

Thanks, Randy!

5 Ways to Get Started with Container Optimization for Automation and Cost Savings

5 Ways to Get Started with Container Optimization for Automation and Cost Savings

As container technology moves past something new and into the mainstream, users are concerned about the next step: container optimization.  In our conversations with customers and potential customers, containers have been a consistent topic for the last few years, typically focused on production environments.  However, recent conversations have become more focused, specifically on how to optimize container spending.

Kubernetes – which seems to be the most popular of container services among our customer base – does allow for a number of ways to optimize for costs and to maximize performance. We have identified five specific opportunities ripe for container optimization. Take a look at these within your own environments.

1) Rightsize Your Pods

Kubernetes Pods are the smallest deployable computing units in the Kubernetes container environment. It is a common practice to use a standard template for limits and requests for pod provisioning. If requests describe the minimal requirement for the CPU and memory for a pod to be scheduled on a node, the limits describe the max amount of CPU and memory the pod can consume on that specific node. Typically engineers set the initial limits by using a rule of thumb, such as doubling it just to be on the safe side and then planning to change it later once they have some data to look at. As with many things in life, “later” rarely happens. As a result, the footprint of the cluster inflates over time, exceeding the actual demand for the services running inside the cluster.

Just think about it, if every pod is over-provisioned by 50% and the cluster is always is 80% full, that means that 40% of the cluster capacity is allocated but not used, or simply put — wasted.

2) Turn Off Idle Pods

Many standard instances/VMs and databases in non-production environments are idle outside of working hours and can be turned off or “parked”. The same case exists for Pods, which in non-production environments can and should be scheduled in the same way.

3) Rightsize Your Nodes

Too many worker nodes are the wrong size and type. Kubernetes permits co-allocating the applications on the same nodes, which can dramatically reduce the cloud bill. Yet, incorrectly sized instances and volumes can lead to the inflation of the cost of Kubernetes clusters. Rightsizing could save up to 50% (particularly if no previous action has been taken to rightsize your nodes.)

Another thing to consider is that smaller nodes have a higher relative OS footprint and increase management overhead. The smaller the node, the higher the number of stranded resources. Stranded resources are CPU or memory which are idle, yet cannot be allocated to any of the pods, because the pods which are to be scheduled are too big to claim it.  If a pod’s sizes are close to the size of the node (server) the percentage of the resources which are stranded gets higher.

4) Consider Storage Opportunities

Out of the box, containers lose their data when they restart. This is fine for stateless components but becomes an issue when a persistent data store is required. One place to look for additional container optimization opportunities is the overprovisioning of persistent storage (EBS, Azure Storage Disks, etc) related to your containers. There are a number of options to optimize container storage, particularly virtualized storage that can be shared by multiple containers, and which persists over time, without being destroyed when individual containers are destroyed. There are a few different persistent-storage plugins and plugin-driven storage solutions available from third-party vendors.

5) Review Purchasing Options

All of the preceding options related to the actual configuration of your container infrastructure.  Just as important as this is ensuring that your purchasing options closely align with your needs. Ensuring the correct instance/VM purchase type for your containerized infrastructure is critical to ensuring flexibility and maximizing ROI. Carefully analyze your purchasing options (e.g. on-demand, reservations and spot) to select the right option for your workload, both in terms of size and usage schedule.  Note that reserved instances are not always the best option for resources that can be scheduled to be turned off. Leverage cost optimization tools to support the earlier options for instance scheduling and rightsizing. Such tools can often change the equation and help avoid lock-ins and upfront commitments.

Container Optimization is Just Another Kind of Resource Optimization

The opportunities to save money through container optimization are in essence no different than for your non-containerized resources. Native tools, from either the cloud provider or open source, can help with this, but their capabilities are limited. For a fully optimized environment, you’ll want to take advantage of the growing ecosystem of specific cost optimization tools.

Stay tuned for news from ParkMyCloud on this front coming soon!

Future Trends in Cloud Computing All Point to Optimization

Future Trends in Cloud Computing All Point to Optimization

Given our focus on public cloud cost control, we here at ParkMyCloud are always trying to understand more about the future trends in cloud computing, specifically the public cloud infrastructure (IaaS) market. Now that public cloud has reached a key peak in growth, there’s a common theme. While new services and products continue to develop, more and more of them are focusing on not just creating capabilities that were previously lacking – they’re focused on optimizing what already exists.

Are Cloud Services Still Growing?

Before we dive into optimization, let’s take a look at how the cloud market continues to grow in 2019 and beyond. Gartner estimates that $206B will spent on public cloud services in 2019, up 17% from 2018 as outlined in the table below:

And according to IDC, almost half of IT spending was cloud-based in 2018, “reaching 60% of all IT infrastructure and 60-70% of all software, services and technology spending by 2020.” So, between Gartner and IDC, no one expects cloud adoption and spending to slow down any time soon. So what’s driving this growth and what are the future trends in cloud computing we should be on the lookout for in 2019 and beyond?

The Future Trends in Cloud Computing You’ve Probably Heard About

There is definitely a lot of hype around Blockchain, Quantum Computing, Machine Learning, and AI, as there should be. But at a more basic level, cloud computing is changing businesses in many ways. Whether it is the way they store their data, improving agility and go to market for faster release of new products and services, or how they store and protect their secure information, cloud computing is benefitting all businesses in every sector. Smart businesses are always looking for the most innovative ways to improve and accomplish their business objectives, i.e., make money.

When it comes to cloud technology, more and more businesses are realizing the benefits that cloud can provide them and are beginning to seek more cloud computing options to conduct their business activities. And obviously, Amazon, Microsoft, Google, Alibaba, IBM, and Oracle plan to capture this spend by providing a dizzying array of IaaS and PaaS offerings to help enterprises build and run their services.

How These Trends Make Computing Better

  • Containers Become Mainstream: Application containerization is more than just a new buzz-word in cloud computing; it is changing the way in which resources are deployed into the cloud. More and more companies utilized containers in 2018. This is another trend that will continue into 2019 and beyond. How it Optimizes: at a development level, containerization allows applications to be developed and deployed faster than ever before. If used efficiently, they can also result in a lower cloud bill.
  • Multi-Cloud and Hybrid Cloud: Once predicted as the future, the time of multi-cloud and hybrid cloud has arrived and will continue to grow. Most enterprises (74 percent) described their strategy as hybrid/multi-cloud in 2018. In addition, 62 percent of public cloud adopters are using 2+ unique cloud environments/platforms. These numbers will only go up in 2019. While this offers plenty of advantages to organizations looking to benefit from different cloud capabilities, using more than one CSP complicates governance, cost optimization, and cloud management further as native CSP tools are not multi-cloud. As cloud computing costs remain a primary concern, it’s crucial for organizations to stay ahead with insight into cloud usage trends to manage spend (and prevent waste). How it Optimizes: it’s a complex problem, but we do see many organizations adopting a multi-cloud strategy with cost control in mind, as it avoids vendor lock-in and allows flexibility for deploying workloads in the most cost-efficient manner (and at a high level, keeps the cloud providers competitive against each other to continually lower prices).
  • Growth of Managed Services: The global cloud managed services market grew rapidly in 2018 and is expected to reach USD 82.51 billion by 2025, according to a study conducted by Grand View Research, Inc. Enterprises are focusing on their primary business operations, which results in higher cloud managed services adoption. Business services, security services, network services, data center services, and mobility services are major categories in the cloud managed services market. Implementation of these services will help enterprises reduce IT and operations costs and will also enhance productivity of those enterprises. How it Optimizes: managed service providers – the good ones, anyway – are experts in their field and some of the most informed consumers of public cloud. By handing cloud operations off to an outside provider, companies are not only optimizing their own time and human resources – they’re also pushing MSPs to become efficient cloud managers so they can remain competitive and keep costs down for themselves and their customers.

Cloud Trends Are Always Evolving

While today, it sometimes seems like we’ve seen the main components of cloud operations and all that’s left to do is optimize them, history tells us that’s not the case. Cloud has been and will continue to be a disruptive force in enterprise IT, and future trends in cloud computing will continue to shape the way enterprises leverage public, private and hybrid cloud. Remember: AWS was founded in 2006, the cloud infrastructure revolution is still in early days, and there is plenty more XaaS to be built.