According to a report published by UK cloud outfit Civo, more than a third of organizations surveyed reckoned that their move to the cloud had failed to live up to promises of cost-effectiveness. Over half reported a rise in their cloud bill.
In the IT world, there is an expectation that bang for buck increases as time goes by, but in this example, prices are rising faster than the rate of inflation, and what customers receive for their money remains unchanged. "Cost control, based on operating datacenters at massive scale, was part of the early sales pitch and...had proven out - cloud product costs were stable, and either went down in price or more features were added at the same price," said John David-Lovelock, VP analyst at Gartner.
The Kubernetes prices were taken from the hyperscalers' very own pricing calculators,” a Civo spokesperson told The Register, highlighting the discrepancy between advertised pricing models and actual customer experiences as they grapple with rising costs.
However, the rapid rise in the cost of electricity post-pandemic, coupled with the rising cost of skilled IT staff, put cloud delivery under new cost pressures that had to be passed on, from hyperscalers to platform provider, from platform provider to software provider, and finally from software providers to clients.
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