ParkMyCloud just turned 3 years old, and from here, the future looks great. The market is growing, cloud is the norm, and cost control is always top of mind for companies big and small. In fact, over 600 enterprises in 25+ countries now use our platform to “park idle cloud resources (including instances, databases and scale groups) in AWS, Azure, GCP and now Alibaba.
As we look to the future, we’re taking a moment to consider current cloud trends and how cost control needs are changing. To provide context, let’s take a quick look at where the market was three years ago.
The Problem that Got Us Started
When we founded the company three years ago, we set out to build a self-service, SaaS platform which would allow DevOps users to automate cloud cost control and integrate it into their cloud operations. We saw a need for this platform as we were talking to enterprises using AWS about broader cloud management needs as a service play. They wanted a self-service, purpose-built easy button for instance scheduling that could be centrally managed and governed but left up to the end user to control – enter ParkMyCloud.
Our value proposition started simply and has stayed relatively constant: save 20% on your cloud bill in 15 minutes or less (it’s 65% per parked resource). The ease of use, verifiable ROI, and richness of our platform capabilities allow global companies like McDonald’s, Unilever, Sysco, Sage and many others to adopt ParkMyCloud on their own, with no services, and begin to automate their cloud cost control in minutes – not days or weeks.
I went back and looked at our pre-launch pitch decks. At that time, the cloud Infrastructure-as-a-Service (IaaS) market was $10B or so, and dominated by AWS, and others like Rackspace and HP were in the game with the other usual suspects. Today, Gartner estimates enterprises will spend $41B on IaaS in 2018, and it’s still dominated by AWS, but the number of players is really down to 4 or 6 depending on where you want to put IBM and Oracle.
But the cloud waste problem is still prominent and growing, most analysts and industry pundits estimate that 25% or more of your bill is wasted on unused, idle or over provisioned resources – that equates to $10B+ based on 2018 IaaS predictions being wasted – that’s a BIG nut. In fact, if you break that down that’s $1MM in wasted cloud spend every hour. And it’s important. Most enterprises rank cloud security/governance and cost management as their primary concerns with cloud adoption.
Cloud Trends Driving the Market
So how are things changing? We see three key trends that will drive our company and platform vision over the next 3 years:
- Multi-cloud – it’s been long discussed, but it’s now a reality: 20% of the enterprises using PMC manage 2 or more CSPs in the platform, and that number is growing. As always, cost control is an important factor in a multi-cloud strategy.
- PaaS – Platform as a Service (PaaS) use is growing, so users are looking to optimize these resources. ParkMyCloud offers optimization for databases, scale groups, and logical groups. We plan to expand into containers and stacks to meet this need.
- Data-driven automation (AIOps) – our customers, large and small, are pushing us to expand our data-driven policies and automation – everyone is becoming more comfortable with the idea of automation. Our first priority on this front is to optimize overprovisioned resources – often referred to as RightSizing … RightSizeMyCloud!
Cloud trends are not always easy to predict, but one thing is for certain: costs will need to be controlled. Good fun ahead.