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The cloud is the opposite of recession proof. Why do you use the cloud in the first place? Flexibility, scale, ease of operations. What are you gonna do with yo
by hnarn 7y ago
The cloud is the opposite of recession proof. Why do you use the cloud in the first place? Flexibility, scale, ease of operations. What are you gonna do with your servers during a recession, put them on Craigslist? Are you gonna put your entire datacenter on there too?
The same mechanic that makes the cloud attractive in the first place is what will bring the hammer down in a serious recession. Companies will turn every stone to use less capacity and save money, and they will easily be able to do it.
- 9nGQluzmnq3M 7y agoOn-prem servers don't run themselves: there's hardware maintenance, depreciation, security, networking, license renewals etc etc. The typical customer I see who's moving from on-prem to cloud has a clear trigger/deadline in the form of hardware reaching EOL or licenses being up for renewal, and these aren't going away with COVID.
- toomuchtodo 7y agoOn prem equipment can be depreciated, and you can drag out the useful life of the equipment you own if necessary. Cloud opex evaporates each month, never to be seen again. CTOs/CIOs call the shots when times are good, CFOs when times get lean.
- W-Stool 7y agoI'm going to use that in my daily conversations if that's OK. Truer words have never been spoken.
- reilly3000 7y agoThere are a whole love of reservations on instances and lock-in to databases, serverless, networking infrastructure, etc. Its hard to leave.
- hnarn 7y agoNobody mentioned leaving. It's about the ease of scaling down operations and spending less money, compared to an on-prem alternative.
- imtringued 7y agoYou can significantly reduce your power bill by turning the servers off.
- chii 7y agothe power bill is only one small component of the cost of physical servers. The main cost is the up-front capital. This capital has a cost (aka, the cost of capital in finance parlance), which either come from debt, or financed by equity, or in opportunity cost. Therefore, shutting the servers down will not decrease that cost of capital, and so continue to cost the business that cannot make use of the servers in a recession. The great thing about cloud servers is that it's pay per use - so there's no cost of capital. And in bad times, the expense can be eliminated, and directed else where that's more needed.
- cachestash 7y agoEvery industry is going to face / implement a degree of cost cutting, that's unavoidable. However the control and scalability of cloud within an ethos of cost cutting is attractive for this exact reason. A business can enter that market and know they have a very flexible amount of control over their expenditure. You need to keep in mind its only a minatory of companies who have migrated to cloud, the majority have plans, but had never made the crossover as yet. With necessity being the mother of all invention, this adoption will only accelerate now
- JackPoach 7y agoWell, the cloud is supposedly 'scalable'. And by that we all thought about 'scaling up'. But scaling down or shrinking is 'scalable' too and now is the time to find out if that's going to happen. Ironically, more businesses right now need to be scalable in terms of shrinking without dying than the original premise of being scalable (growing bigger and bigger without interruptions).
- jayd16 7y agoThere's still the aspect of trading higher total cost for lower initial investment when you use a cloud provider. That won't change and there might be more incentive to think short term.