☁ ⚔ This is BIG news in the Cloud wars: Google is killing their egress fees for GCP ⚔ ☁
In concrete terms: Google says it’ll stop charging fees to transfer data out of Google Cloud.
Egress fees have always been the 'dark' secret of the cloud. E.g. when the big cloud players offer free credits to upcoming startups, it has always been a bit like the trojan horse due to hefty egress fees if you one day want to change your cloud provider.
Egress fees can be a subtle tactic used by cloud providers to discourage clients from migrating away from their services. As organizations accumulate increasing amounts of data over time, their reliance on the cloud provider deepens. Consequently, the cost of transitioning away from the cloud provider escalates, resulting in a situation of vendor lock-in.
Further, data egress costs are very hard to calculate and forecast. As already mentioned, they’re likely the best representation of vendor lock-in. I know many who have said that they can't stand the pricing model for egress in the cloud.
Data egress costs stand as a significant barrier to cloud adoption and an often overlooked financial burden. According to IDC research, both anticipated and unexpected egress fees constitute around 6% of the average cloud storage expenses for organizations. While this percentage might seem small, these charges steadily increase in tandem with the expansion of an organization's cloud usage.
In late 2022, I came across the word “dark data”, referring to data that never actually gets used, which apparently makes up most data at companies today. One report found that only 32% of company data is used, while 68% goes unleveraged.
Recent data also shows that close to 90% of files that are accessed in S3 are accessed just once. As noted by Matthew, do you think all of those buckets are configured to remove those files or move them to a different storage class so that they’re not still in Standard storage? Of course not. And considering how much data is actually in the Cloud, that means a lot of money is being spent for no reason.
As DevOps and Data teams have had to concentrate on speed & agility to meet the extraordinarily high expectations placed on them during the growth at all cost ZIRP times, best practices in the field of data cloud cost optimization are still relatively new.
The Battery Ventures Q1 2023 State of Cloud Software Spending report highlighted that 95% of CXOs consider cloud cost optimization either a medium or a high priority over the next 2 years. It further highlighted that non-cloud provider solutions for FinOps and cloud cost optimization are a priority for 65% of CXOs.
In the 2010s, cloud infrastructures enabled a new generation of companies to build and scale their businesses. In this decade, cloud infrastructure is table stakes and Cloud Economics is top of mind.
As my friend Alexandre said: in today's world Cloud is and should be a commodity.
Interesting move by Google!
#cloud #devops #finops