Dear Daniel Ek: We Made You a Playlist About Your Google Cloud Spend.

Dear Daniel Ek,

Congrats on Spotify’s IPO! It’s certainly an exciting time for you and the whole company. We’re a startup ourselves, and it’s inspiring to see you shaking up the norms and succeeding on your first day on the stock exchange.

Of course, with big growth comes big operational changes. Makes sense. As cloud enthusiasts ourselves, we were particularly interested to see that you committed to 365 million euros/$447 million in Google Cloud spend over the next three years.

Congrats on choosing an innovative cloud provider that will surely serve your infrastructure needs well.

But we’d like to issue a word of warning. No, not about competing with Google – about something that hits the bottom line more directly, which I’m sure will concern you.

Maybe a playlist on our favorite music streaming service is the best way to say this:

What do we mean when we say not to waste money on Google Cloud resources you don’t need?

In fact, we estimate that up to $90 million of that spend could be on compute hours that no one is actually using – meaning it’s complete wasted.

How did we get there? On average, ⅔ of cloud spend is spent on compute. Of that, 44% is on non-production resources such as those used for development, testing, staging, and QA. Typically, those resources are only needed for about 35% of hours during the week (a 40- hour work week plus a margin of error), meaning the other 65% of hours in the week are not needed. More here.

That’s not to mention potential waste on oversized resources, orphaned volumes, PaaS services, and more.

Companies like McDonald’s, Unilever, and Sysco have chosen ParkMyCloud to reduce that waste by automatically detecting usage and then turning those resources off when they’re not needed – all while providing simple, governed access to their end users.

Daniel, we know you won’t want your team to waste money on your Google Cloud spend.

We’re here when you’re ready.

Cheers,

Jay Chapel

CEO, ParkMyCloud


About Jay Chapel

Jay Chapel is the CEO and co-founder of ParkMyCloud. After spending several years in the cloud management space, Jay saw that there was no simple solution to the problem of wasted cloud spend - which led him to start ParkMyCloud in 2015. Before that, he spent 10+ years with Micromuse and IBM Tivoli, a provider of business infrastructure management software. After an acquisition by IBM, he led the successful sales integration and subsequent growth of the IBM Tivoli/Netcool business in Europe. He also held several regional and worldwide sales roles in Switzerland, the UK and the US. Jay earned both a BA in Finance and an MBA from West Virginia. Those few hours a month that Jay’s not busy with ParkMyCloud’s growth and success, you can find him on the ski slopes, on the soccer field, or on the golf course often accompanied by his three kids.

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © ParkMyCloud 2016-2018. All rights reserved|Privacy Policy