I’ve been in jobs with cloud platform responsibilities at large financials for the last nine years. With all of the regulatory oversight and internal controls, the all-in price for cloud is actually quite high and usually gives businesses pause when they start to realize that.
Operating data centers is also incredibly expensive. The biggest costs come when you need to build new ones while maintaining what you have. The last place that I worked we spent several billion dollars in data center builds over the course of five years. Cloud was seen as a way to reduce the demand, but it takes a long time to build and mature a delivery platform that can run at reasonable velocity and adapt to business demands.
Now regulators are really focused on concentration risks and are demanding multi-cloud architectures and are testing contingency plans in the event of massive failures on the part of service providers. This will in part drive a demand for reserve capacity in datacenters as well as build out of platform management capability that that can move workloads around without substantial incremental engineering work.
I’ve been in jobs with cloud platform responsibilities at large financials for the last nine years. With all of the regulatory oversight and internal controls, the all-in price for cloud is actually quite high and usually gives businesses pause when they start to realize that.
Operating data centers is also incredibly expensive. The biggest costs come when you need to build new ones while maintaining what you have. The last place that I worked we spent several billion dollars in data center builds over the course of five years. Cloud was seen as a way to reduce the demand, but it takes a long time to build and mature a delivery platform that can run at reasonable velocity and adapt to business demands.
Now regulators are really focused on concentration risks and are demanding multi-cloud architectures and are testing contingency plans in the event of massive failures on the part of service providers. This will in part drive a demand for reserve capacity in datacenters as well as build out of platform management capability that that can move workloads around without substantial incremental engineering work.