A recent survey by CloudZero shows that 6 out of 10 organizations spend more than expected on cloud services. And these organizations will likely have to spend even more in the near future, as the prices for cloud services keep rising. In 2022, we witnessed significant growth in prices for Google Cloud Platform, Microsoft Azure, and Amazon Web Services. The bad news is that the main factors behind this growth have not gone away. That’s why we expect cloud prices to keep growing in 2023.
Here are the most significant factors driving the growth of cloud prices:
To make things worse, many companies fail to properly manage their cloud assets, further increasing their cloud costs. A recent CloudZero survey shows that 49% of cloud-based businesses struggle to control cloud costs. Moreover, 78% of cloud-based businesses notice cloud cost variance later than they would expect. That’s because many organizations fail to manage their cloud resources efficiently and cannot see their overall spending.
One of the greatest problems leading to increased cloud costs is a lack of dbt specialists. Dbt is an essential tool for helping businesses transform and efficiently manage their data in a data warehouse. Unfortunately, too many people use it without the required expertise. This increases the consumption of cloud services and, consequently, increases companies’ technology cost. The use of dbt without the required expertise also illustrates that too many companies rely on data-related tools without having a clear understanding of when these tools are helpful and how they work.
This leads to unused or underused cloud resources, known as cloud waste. Around 54% of businesses report that their biggest cause of cloud waste is a lack of insights into cloud usage. Almost 50% of enterprises have challenges controlling cloud expenses, and 53% cite accurate insights into cloud costs as their main cloud-related problem. As a result, 37% of enterprises are unpleasantly surprised with their cloud charges.
A vivid example of this failure to control cloud expenses is when companies struggle to control the cost of implementing data observability tools. These tools help companies ensure data quality and reliability, which are the pillars of data trust. While planning cloud expenses, executives consider only the cost of the data observability tool. They don’t consider that data observability tools run SQL queries to drill through their data. SQL queries heavily consume cloud resources, which automatically increases the cost of cloud services.
And if you think that this price increase is insignificant, consider that the cost of SQL queries run by a data observability tool is often as high as the tool’s subscription fee. So if you’re subscribing to a data observability tool for approximately $100,000 a year, get ready to spend another $100,000 a year running SQL queries.
The answer is by controlling and reducing your cloud consumption. A good start would be using solutions that are less ravenous when it comes to consuming your cloud resources. For instance, you might switch from data observability tools that run costly SQL queries to a solution like Masthead that observes your data by ingesting data logs. Unlike other tools on the market that run SQL queries in your data warehouse, Masthead only processes logs and metadata. As a result, you get a sustainable and cost-efficient data observability solution that ensures data trust without compromising your data security.
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BigData, Data Culture, Data Engineering Practices, Data Quality