On this episode of Cloud Cost Optimization, Nick and Jason discuss two recent articles from Reuters and CNBC that discuss companies' increasing reluctance to spend on cloud and the move to cloud amidst rising energy costs respectively.

CIOs are being told to stop spending with the biggest concern being the month-over-month, year-over-year increase in cloud spend. Then, Nick and Jason discuss the possibility of data centers getting repatriated and the price stability of cloud, primarily due to competition.

HIGHLIGHTS

• Reuters: Companies are minimizing cloud cost spending due to economic downturn and rising cloud costs
• CNBC: Energy cost is increasing by 65%, prompting a move to cloud

QUOTES

That AWS and Azure missed expectations is a sign of a slowdown - Nick: "So we're seeing that AWS and Azure both missed expectation for Q3 and both are significantly down from last year's expectation as well. This does look like a clear indicator of organizations are focused on cloud spending and cloud spending cuts optimizing their environments.."

Price stability makes cloud attractive to companies - Nick: "Organizations (are) seeing 65% increase in energy costs, and that's their motivator for moving to cloud because cloud costs are much more stable than these inflationary costs inside of the data center... due to competition, because there is no competition in the utility space."

Check out the articles referenced in the following links:

• Reuters
• CNBC

Get to know our hosts in the links below:

• About Nick
• About Jason

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• https://www.tenacitycloud.com/