Vantage uses anonymized data from thousands of connected accounts to snapshot industry spending patterns.
Cloud growth continues, with GCP and Azure experiencing higher percentages of revenue increases compared to AWS. While AWS users are actively optimizing and saving, there is potential for users of other providers, like GCP and Datadog, to do the same by utilizing commitment plans and lower-cost storage classes.
The cloud market is experiencing strong growth, with increased adoption across all three major providers. In some areas, such as EC2, cloud users are making strides in optimizing their cloud usage. In other areas, there are still untapped, low-hanging opportunities for cost savings.
Trends are showing cloud users continue to switch to newer and more cost-effective generations. Also, the growth of AI is impacting customer spending patterns.
Big changes to discounting programs occurred in Q4. We provide advice on how to navigate the new landscape, plus perspective on cloud costs now that the 'era of cost optimization is over'.
Is cloud provider revenue growth hitting a ceiling? Cloud users are looking to scale back costs more than ever. Q3 2023 found an uptick in spending optimization efforts. More companies are looking to save by switching away from On-Demand spending as well as upgrading to more cost-effective instances.
Q2 2023 saw a crush of demand for GPUs and cheaper compute that resulted in capacity constraints across the major clouds. Increasingly, companies are using multiple clouds for different workloads.
The first quarter of 2023 represented a return to normal among cloud spending, tracking with earnings reports from the hyperscaler clouds.
In Q4 we found dramatic shifts in how companies were allocating costs, recording the lowest ever on-demand EC2 spend and a 16% drop in utilization of the most expensive S3 tiers. Data for serverless and database costs also demonstrates a new focus on cost optimization.
In the inaugural Cloud Cost Report we profiled spending across compute, databases, storage, and serverless AWS costs to determine how companies were thinking about cloud infrastructure using real, anonymized data.
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