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Public cloud prices to surge in US and Europe next year
The Register ^

Posted on 10/20/2022 5:01:40 AM PDT by FarCenter

Software-as-a-hostage? Freeing yourself from the fluffy white chains is not easy, even in face of inflation

Public cloud prices are forecast to jump by almost a third in Europe next year as the cost of borrowing and energy squeeze providers. For the US, the expectation is for the price list to jump by a fifth.

The market exploded during the early days of the pandemic as much of the world switched to remote working, and continues to grow upwards of 30 percent each quarter with AWS, Microsoft, and Google the major beneficiaries.

Yet challenges loom, according to Steve Brazier, CEO at channel analyst Canalys, who pointed out that the cost of the ever expanding infrastructure for public cloud is "incredibly expensive."

"It's probably the biggest deployment of capital [that] has ever taken place in an industry and it happens quarter after quarter, year after year," he said at the Canalys Channel Forum EMEA 2022 in Barcelona. "We estimate this year the total spending of our seven top seven hyperscalers on capex will be $140 billion."

This includes buildings, networking gear, and other IT equipment. The analyst estimates, for example, that half of all servers shipped worldwide this year will be consumed by those top seven providers.

"The public cloud is a tremendous success," said Brazier, "and it occurred in the era of cheap money. Things are changing."

The cost of borrowing is rising in Europe. It went up by 22 percent in September, and the cost of energy reached record levels in the region last month. Brazier said he has spoken to datacenter providers whose energy costs quadrupled, so he thinks some of his calculations are perhaps conservative.

(Excerpt) Read more at theregister.com ...


TOPICS: News/Current Events
KEYWORDS:

1 posted on 10/20/2022 5:01:40 AM PDT by FarCenter
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To: FarCenter

I have no idea what a cloud is but I’m pretty sure I can live without it.


2 posted on 10/20/2022 5:03:11 AM PDT by JonPreston
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To: JonPreston

Just about everything you touch is using cloud computing. This increase will be passed along to consumers. Count on it.


3 posted on 10/20/2022 5:04:38 AM PDT by rarestia (“A nation which can prefer disgrace to danger is prepared for a master, and deserves one.” -Hamilton)
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To: FarCenter

My software is free to use, after paying for it.


4 posted on 10/20/2022 5:04:42 AM PDT by Jonty30 (Some men want to see the world burn. It is they that want you to buy an electric car.)
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To: JonPreston

“All your cloud are belong to us.”


5 posted on 10/20/2022 5:04:55 AM PDT by moovova
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To: JonPreston

You are using it when you use FR. Or any Internet page. Or email. Or texting.


6 posted on 10/20/2022 5:13:25 AM PDT by ProtectOurFreedom (The “I” in Democrat stands for “Integrity.”)
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To: FarCenter

Software as a hostage. Who didn’t see this coming?


7 posted on 10/20/2022 5:16:48 AM PDT by ComputerGuy (Heavily-medicated for your protection)
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To: FarCenter

time to print out all my photos because at the end of the day — we will PAY for the digital storage, and they’ll control our power, and when there’s no power and no battery left in your laptop, then todays generation might not even have a printed photo of themselves to pass on.


8 posted on 10/20/2022 5:19:17 AM PDT by Jaysin (Trump can’t be beat, unless the democrats cheat)
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To: ProtectOurFreedom

No, Free Republic is on its own dedicated servers, co-located.

Anyone with their own physical systems is not in a cloud.


9 posted on 10/20/2022 5:25:24 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: ConservativeMind

Private cloud vs public cloud. Doesn’t make a lot of difference. Things like payment services rerun in MS Azure or Amazon AWS. So even if info is served from a private cloud, many ancillary services are run in public cloud.


10 posted on 10/20/2022 5:28:30 AM PDT by ProtectOurFreedom (The “I” in Democrat stands for “Integrity.”)
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To: ProtectOurFreedom

It’s not a private cloud, unless you have spare capacity and can automate the expansion and contraction of your own used resources.

Stand alone servers are not a “cloud.”


11 posted on 10/20/2022 5:42:48 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: JonPreston

Cloud = Techie for ‘somebody else’s computers’ ...


12 posted on 10/20/2022 5:46:04 AM PDT by Salgak (You're in Strange Hands with Tom Stranger. . . .)
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To: ConservativeMind

Yes and no

Cloud refers to systems that are not in the possession of the owner but are co located, whether the machine is dedicated, or shared or virtualized does not really matter

Of course there are advantages and disadvantages of this, and this article is talking about the disadvantages

Energy costs going up is a giant factor in this as well


13 posted on 10/20/2022 5:46:14 AM PDT by Trump.Deplorable (Woke Fascists are a threat to our republic )
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To: Jaysin

>>then todays generation might not even have a printed photo of themselves to pass on.

You could have some monument company engrave them on slabs of granite to make them really permanent.


14 posted on 10/20/2022 5:59:50 AM PDT by FarCenter
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To: FarCenter
"You could have some monument company engrave them on slabs of granite to make them really permanent."

Clay worked well enough for the Sumerians.

15 posted on 10/20/2022 7:01:53 AM PDT by Wonder Warthog (Not Responding to Seagull Snark)
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To: ComputerGuy
Software as a hostage. Who didn’t see this coming?

Bean counters and execs. All the IT people saw it as a hostage situation from the start.

16 posted on 10/20/2022 7:05:35 AM PDT by meadsjn (, )
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To: meadsjn
The cloud is a set of soft handcuffs, versus the forced lock-in of resource-sharing contracts of a local minicomputer or mainframe from back in the 70s and 80s.

You didn't own your data with resource-sharing, so you had to either pay a ton of money to pull off an electronic copy, or use the novel screen scraper software on local PCs running terminal emulation software, to rebuild your database outside of the mainframe.

In a local small city near where I grew up, over 200 separate customers shared the same mainframe. This was a very common setup around the country, and it worked, but networks and servers allowed local ownership of the needed resources, using much cheaper equipment and software.

It was an interesting time, that, with proprietary cloud services on AWS and other cloud providers, looks to be revisited. Terraform doesn't help much with switching clouds, when you are dependent on many services that don't exist is a similar way, between clouds.

17 posted on 10/20/2022 7:25:27 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: JonPreston

FR is essentially running on a “cloud” server.
This is different than running a server from your home or business.

Digital Ocean is a company where anyone can setup a cloud server and its very easy.
They handle system updates and you handle the html code.


18 posted on 10/20/2022 7:34:09 AM PDT by Zathras
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To: FarCenter

Simply use your own servers that run linux.


19 posted on 10/20/2022 7:50:14 AM PDT by Mlheureux
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To: ConservativeMind; ProtectOurFreedom
Anyone with their own physical systems is not in a cloud.

The definition has broadened. FR would be "Private CLoud".

"Cloud" is just a marketing term for WAN over TCP/IP (Internet). The image of a Cloud was used to represent the Internet before there was even a web.
20 posted on 10/20/2022 8:24:31 AM PDT by Dr. Sivana (What was 35% of the Rep. Party is now 85%. And it’s too late to turn back—Mac Stipanovich )
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