Growth = Wasted Spend on Microsoft Azure| By |Jay Chapel

If you read any cloud or tech blogs, you’ve probably seen the latest financials that show that Microsoft Azure is growing – and that it’s currently the fastest-growing cloud provider. However, this growth means an ever-increasing amount of wasted spend on Microsoft Azure resources.

Overall, Azure’s growth is exciting for customers who have bought into the Microsoft stack — more momentum means quickly evolving product lines, balanced prices, and improving cloud services.

However, dominant competitor Amazon Web Services (AWS) has had more time to feel and subsequently address growing pains. That means that AWS users have more options available to them to address certain concerns that come with using public cloud. For example, managing costs.

Managing Costs: a Major Concern Among Cloud Users

How much are Azure users worrying about managing their cloud costs? According to RightScale’s 2017 State of the Cloud report, managing costs is a huge, top-of-mind challenge. While it’s a top-3 concern for all cloud users, for mature cloud users, managing costs is the number one concern.

Rightscale-Cloud-Priorities

The primary goal of cost management efforts is to optimize costs – in other words, to eliminate wasted spend. Most cloud customers would agree that they have some amount of spend wasted, whether that’s from leaving resources on when not needed, oversized resources, orphaned storage volumes, etc. However, estimating the amount of wasted spend is a problem.

RightScale found that customers consistently underestimate how much they are wasting:

RightscaleWastedCloudSpend

So when we’re looking at Microsoft Azure specifically – how much spend is wasted?

Wasted Spend on Microsoft Azure

We’ve talked about overall cloud waste before. So let’s apply those numbers to Azure specifically.

  • The public cloud IaaS market is $23 billion
  • 12% of that IaaS market is Microsoft Azure, or $2.76 billion
  • 44% of that is spent on non-production resources – about $1.21 billion
  • Non-production resources are only needed for an average of 24% of the work week, which means up to $900,000,000 of this spend is completely wasted

And that’s only a portion of the waste – it doesn’t even address oversized resources, orphaned volume storage, etc. Many of these problems are well-addressed in AWS, but the Azure support market is still catching up.

The good news is, this $0.9 billion portion of wasted spend is easy enough to solve. All Microsoft Azure users need to do is schedule the “lights to turn off” when they’re not home – in other words, schedule non-production resources to turn off when no one is using them.

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