Why cost could slow public cloud growth with SMBs

The enterprise and startups love the public cloud, but there's still some resistance with SMBs, says Agio CEO Bart McDonough.

Why cost could slow public cloud growth with SMBs

Despite the love for the public cloud, there's resistance from SMBs and Agio CEO Bart McDonough discusses this challenge with TechRepublic's Dan Patterson

Dan Patterson: Is this only an enterprise game, or do SMBs and startups figure in somewhere as well?

Bart McDonough: Well our experience is, it's kind of interesting, is we see two groups of businesses really adopting the public cloud. You see the really small businesses, let's call it 25 people and under, are almost exclusively on the public cloud. And then you have the more enterprise, let's call it 500 to 1000 people and above, and they're really adopting the public cloud. What's interesting, is you have that middle-tier of businesses that are resisting. And what we find is sometimes the technology decision makers think that it might be replacing their jobs, which is just not the case. It's simply the hosting provider. But there's still some resistance in that middle tier of business size. Again, the small ones [are] fully adopting it, and we're seeing a lot of great adoption use cases from the larger businesses.

Patterson: Is there something that could kill, stop, or slow the growth of the public cloud? Not that this is necessarily something that we want to do, but there are always, with technologies that emerge so quickly, there's always that unexpected road-bump you end up hitting, not to mix metaphors. But what is in store for the public cloud that we might not have our eye on yet?

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McDonough: Yeah, so I think there's two big roadblocks. It's not being able to predict your costs. I think with the on-prem model or public-cloud models, you have a pretty good idea of your floor and your ceiling of your costs. And this one goes right hand-in-hand with my next point, which is the complexity of it. As more and more capabilities and technology are embedded in public cloud, you have the risk of poor configuration leading to data exposure. There's been lots of examples of this. But that poor configuration can do one of two things, give you a data breach type scenario, or have cost controls, really a lack of cost controls, where costs just run amok. And so I think if there are issues in organizations where they don't have good controls around their costs, I think you might have a pumping of the breaks of the adoption. Or if there are more configuration errors leading to date breaches, I think those breaks could be pumped.

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