It’s not hard to start a company but it’s definitely hard to grow and scale a company, so two years later we thought we would discuss trends in cloud computing that shape our growth and vision – what we see and hear as we talk to enterprises, MSP’s and industry pundits on a daily basis. First, and foremost we need to thank our customers, both free and paid, who use ParkMyCloud, save millions a year, and actively engage with us in defining our roadmap, and have helped us develop the best damn cloud cost control solution in the market. And the bloggers, analysts, and writers who share our story, given we have customers on every continent (except Antarctica) this has been extremely beneficial to us.
Observation Number One: the public cloud is here to stay. Given the CapEx investment needed to build and operate data centers all over the world, only the cash rich companies will succeed at scale so you need to figure out if you want to be a single cloud / multi-region, or multi-cloud user. We discussed that in detail recently in this blog and it really boils down to risk mitigation. Most companies we talk to are single cloud BUT do ask if we support multi-cloud in case they diversify (we are, we support AWS, Azure, and Google).
Observation Number Two: AWS is king, duh – well they are, and they continue to innovate and grow at a record setting pace. AWS just hit $4bn in quarterly revenue – that’s $16bn in run rate. It’s like the new IBM – what CIO or CTO is going to get fired for moving their infrastructure to AWS’ cloud to improve agility, attract millennial developers who want to innovate in the cloud, leverage the cloud ecosystem, and lower cost (we will address this one in a bit). We released support for Azure and Google in 2017, and yet 75% or more of the new trials and customers we get use AWS, and their environments are almost always larger than those on Azure and Google. There is a reason Microsoft and Google do not release IaaS statistics. And for IBM and Oracle, they are the way back IaaS time machine.
Observation Number Three: Cloud Cost Control is a real thing. It’s something enterprises really care about, and optimizing their cloud spend as their bills grow is becoming increasingly more important to the CFO and CIO. This is mainly focused on buying capacity in advance (which kind of defeats the purpose of the pay as you go model), rightsizing servers as developers have a tendency to over provision for their needs, turning stuff off when it’s not being used, and finding orphaned resources that are ‘lost’ in the cloud. As 65% of a bill is spent on compute (servers / instances) the focus is usually directed there first and foremost as a reduction there is the largest impact on a bill.
Observation Number Four: DevOps and IT Ops are responsible for cloud cost control, not Finance. Now, Finance (or the CFO) might provide a directive to IT or Engineering that their cloud costs must be brought under control and that they need to look at ways to optimize, but at the end of the day DevOps and IT Ops are responsible for evaluating and selecting tools to help their companies immediately reduce their cloud costs. When we talk to the technical teams during a demo they have been told to they need to reduce their cloud spend or there is a cost control initiative in place, and then they research technologies to help them solve this problem (SEO is key here). Here’s a great example of a FinTech customer of ours and how their cost control decision went down.
Observation Number Five: It’s all about automation, DevOps and self-service. As mentioned, the technical folks are responsible for implementing a cost control platform to optimize their cloud spend, and as such it’s all about show me, not pretty reports and graphs. What we mean here is that as an action oriented platform they want us to be able to easily integrate into their continuous integration and delivery processes through a fully functional API, but also provide a simple UI for the non-techies to ensure self-service. And at the infrastructure layer it’s about what you can do with and through DevOps tools like Slack, Atlassian, and Jenkins, and at the enterprises level with SSO providers such as Ping, Okta and Microsoft, repeating themes over and over again regardless of the cloud provider.
Observation Number Six: Looking ahead, it’s about Stacks. As the idea of microservices continues to take hold, more developers are utilizing multiple instances or services to deploy a single application or environment. In years past, the bottleneck for implementing such groups of servers or databases was the deployment time, but modern configuration management tools (like Chef, Puppet, and Ansible) make this a common strategy by turning the infrastructure into code. However, managing these environments for humans can remain challenging. ParkMyCloud already allows logical groupings of instances for one-click scheduling, but we’re planning on taking this a step further by integrating with the deployment solutions to really tie it all together.
Obviously the trends in cloud computing we touch on have a mix of macro and micro, and are generally looked at through a cost control lens, but they do provide insights into the day to day of what we see and hear from the folks that operate and use cloud from multinational enterprises to startups. By tracking these trends over time, we can help you keep on top of cloud best-practices to optimize your IT budget, and we look forward to what the next 2 years of cloud computing will bring us.