Cloud customers spend too much for resources they never use

Alfonso Maruccia

Posts: 185   +91
Staff
Why it matters: Cloud is always sold as a solution to spare money over on-premise hardware and traditional software applications. A recent report says otherwise, showing how cloud platforms can waste money if customers don't know how to manage resources efficiently, which they usually don't.

According to a report by Cast AI, overprovisioning is the bane of efficiently using the cloud for containerized applications. Cloud spending is overtaking traditional IT spending, yet much of this money is wasted on unused computing resources because they aren't needed.

Cast AI analyzed data from thousands of clusters running cloud-based applications and services. The company found that, on average, 37 percent of CPU resources provisioned for cloud-native applications are never used. By removing unnecessary resources and effectively selecting the amounts of VMs, companies could save up to 46 percent of their current spending.

Cast AI sells solutions for optimizing resource provisioning for Kubernetes containers, so the company is clearly advertising its services here. If workloads account for spot instances, the savings can reach an incredible 60 percent of current spending on average.

Spot instances are virtual instances that take advantage of excess capacity currently unused by the cloud provider. They are usually available at less cost than standard On-Demand instance pricing. Cast AI says the overspending issue is similar across all three prominent cloud platforms, Amazon AWS, Google Cloud Platform, and Microsoft Azure, with a possible 5-percent variation across providers.

The application size isn't a factor either since there is only a minor variation (plus or minus 5 percent) between lesser applications (which means spending at least $1,000 per month, mind you) and larger applications (spending $100,000 per month). Thus the "rightsizing problem" seems to be universal. Cast AI concludes that it is closely related to how cloud-native applications are managed.

Besides wasting a lot of money that the company could use for something else, overprovisioning also significantly affects the environment as energy consumption continues growing without reason. Cast AI provides free analysis programs to let organizations know how much they spend on virtual instances they don't need. For a fee, businesses can ask Cast AI to take action based on that information to rightsize their cloud resource provisioning to best match the workload they have.

Permalink to story.

 

VitalyT

Posts: 6,474   +7,345
Yeah, we need hosting with dynamic scaling, and pay providers according to the actual usage. But this is, of course, not in their financial interest.

This is why I personally stick with dedicated hosting, and use cloud only for tiny projects that can run on the most basic plan.
 

Uncle Al

Posts: 9,363   +8,581
Personally, I just never use the cloud except for game storage (the results, not the game).
 

Vanderlinde

Posts: 210   +130
Yeah, we need hosting with dynamic scaling, and pay providers according to the actual usage. But this is, of course, not in their financial interest.

This is why I personally stick with dedicated hosting, and use cloud only for tiny projects that can run on the most basic plan.


Hosting is a business afterall. Ive used various providers in the past, but there's always something as a catch when you pay on the cheap. Eventually I switched over to my own servers and now I have 15 running in amsterdam for quite some years, now hosting over 2700 websites combined of my clients and my own.

Soon to be replaced tho, AMD Epyc pretty much covers all the computing power in one.

 

PEnnn

Posts: 1,010   +1,360
Squeezing even more $$$ out of your consumers seems to be the new business model. And it is not limited to tech companies.

Airlines and banks have been doing it for years, but lately it has reached obscene levels and spread to almost every industry.
And of course, at the first sign of trouble, the rubes, aka, tax payers, will bend over and bail them out, no questions asked!!
 

RudyBob

Posts: 891   +911
" can waste money if customers don't know how to manage resources efficiently, " Where is this NOT an issue?
 

veLa

Posts: 1,183   +854
This is why it's better to build your own private cloud aka virtualized datacenter.
 

veLa

Posts: 1,183   +854
So do you use 100% of the resources on your private cloud?
There's not really any cost savings other than electricity since it's wholistically owned and built entirely off of donated systems! But not quite, our load is very light as a small non-profit business.