Cloud

Why many companies are spending more than necessary on cloud services

According to New Relic's Jim Gochee, companies that only need basic cloud services tend to pay more than they should.

TechRepublic's Dan Patterson spoke with Jim Gochee, chief product officer of analytics firm New Relic about achieving maximum business benefits from cloud services.

Watch the video above, or read part of their conversation below:

Patterson: Is there any benefit to doing experiments or trying different tools, techniques, and tactics to optimize the cloud, and what are some of those benefits?

Gochee: Yeah, absolutely. I mean, one of the things that we see is if you utilize the cloud in kind of a basic way you may be spending a lot more money than you need to for it. And in fact, cloud spend is becoming a new big problem for larger customers trying to get a handle on all of the cloud services that are being consumed.

SEE: Cloud migration decision tool (Tech Pro Research)

Now, Amazon has tried to make it a little bit easier. So, you know, if you don't need that entire server provisioned. You know, they have things like server-less now with Lambda. You can write code and you can deploy it and if that code isn't running very frequently you're going to get charged a lot less for that. And so, some of the newer services where you don't need to provision the whole thing but you sort of pay in smaller increments as you go. Experimenting with those, depending on the application, can yield a tremendous cost savings. And often, you get burst ability with it because ... For Lambda, Amazon will provision as much server power as needed to run all the functions.

And so, if you're very bursty in how that code runs they'll automatically provision behind the scenes. And then during idol times or when there's less activity they'll wind down the provisioning on their end.

For more of this conversation, check out these articles:

Also see:

  • Special report: The cloud v. data center decision (free PDF) (TechRepublic)
  • Cloud providers ranking 2018: How AWS, Microsoft, Google Cloud Platform, IBM Cloud, Oracle, Alibaba stack up (ZDNet)
  • Amazon Web Services: The smart person's guide (TechRepublic)
  • Microsoft's Q2 strong, but commercial cloud growth slows (ZDNet)
  • Why Kubernetes' platform prowess is a bigger threat to Amazon than its containers (TechRepublic)
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    Cloud service icon with options and devices

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    About Dan Patterson

    Dan is a Senior Writer for TechRepublic. He covers cybersecurity and the intersection of technology, politics and government.

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