In 2006, Amazon debuted EC2. 15 years on, HashiCorp says firms blowing their cloud budgets is all part of the fun
- Reference: 1629804431
- News link: https://www.theregister.co.uk/2021/08/24/ec2_at_15/
- Source link:
EC2 was a relatively simple concept. Applications ran on a virtual CPU, "the equivalent of a 1.7 GHz Xeon processor, 1.75 GB of RAM, 160 GB of local disk and 250 Mb/second of network bandwidth," [2]Amazon's blog said at the time , and users could add or remove these resources as needed rather than forecast future needs and configure servers accordingly. It was ideal for bursty applications, or so the Bezos bunch said.
The Xen hypervisor sat behind the scenes and – again, this was 15 years ago – "you pay just 10 cents per clock hour." It would take until [3]2017 before per-second billing was brought in .
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At launch, there was just one instance type, one region – US East – a limited set of Linux kernels, and storage lasted as long as the instance.
[5]
[6]
But things have moved on - with many other vendors muscling into the cloud game, and billing becoming a [7]common [8]bugbear .
While EC2 played a hugely important role in cloud adoption by the enterprise, the sticker shock suffered by consumers of all clouds remains. Almost 40 per cent of companies overspent on the awfully convenient cloud computing tech in the last year, according to a [9]report from cloud services outfit HashiCorp.
[10]No one likes a heart-stopping AWS bill shock so now there's a machine learning tool to help detect cost anomalies
[11]Customers warn Gartner of AWS's high-pressure sales tactics in latest verdict on public cloud providers
[12]Kubernetes a black hole of unpredictable spend, according to new report
[13]VC's paper claims cost of cloud is twice as much as running on-premises. Let's have a look at that
[14]Oracle and AWS trumpeted how their clouds helped Zoom scale. But it turns out Zoom fears its cloud bills and uses co-located kit
[15]Why cloud costs get out of control: Too much lift and shift, and pricing that is 'screwy and broken'
39 per cent of more than 3,200 respondents in the study reckoned that 2020's budget had been blown. The bigger the budget, the more likely the company was to munch through it.
Unsurprisingly, big companies were big spenders. 34 per cent of large enterprises set a budget of at least $10m a year while 62 per cent of small business went for under $100k. Of those spanking between $2m and $10m on the cloud, almost half overspent (compared to 27 per cent of those budgeting until $100k).
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"Notably," said HashiCorp, "some two-thirds of the overspenders said they expected to bust their budgets."
While COVID-19 was a factor in overspending, the bogeyman "Shifting Priorities" was cited as the largest factor for an overspend.
As Amazon [17]unfurls the bunting for the anniversary of EC2's public debut, spare a thought for the bean-counters faced with dealing with the sometimes unexpected cost of all that convenience. ®
Get our [18]Tech Resources
[1] https://www.theregister.com/2007/04/15/amazon_vogels_webservices/
[2] https://aws.amazon.com/blogs/aws/amazon_ec2_beta/
[3] https://www.theregister.com/2017/09/19/aws_per_second_billing/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YSUXtjiGhmPLFCf@37TCpwAAAJc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YSUXtjiGhmPLFCf@37TCpwAAAJc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YSUXtjiGhmPLFCf@37TCpwAAAJc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2021/01/13/zoom_prospectus_reveals_colo_infrastructure/
[8] https://www.theregister.com/2020/09/28/aws_cost_anomaly_detection/
[9] https://www.hashicorp.com/blog/cloud-budgets-busted-almost-40-overspent-last-year
[10] https://www.theregister.com/2020/09/28/aws_cost_anomaly_detection/
[11] https://www.theregister.com/2021/08/03/gartner_verdict_on_public_cloud/
[12] https://www.theregister.com/2021/06/29/kubernetes_spend_report/
[13] https://www.theregister.com/2021/06/02/andressen_horowitz_paper/
[14] https://www.theregister.com/2021/01/13/zoom_prospectus_reveals_colo_infrastructure/
[15] https://www.theregister.com/2020/09/03/cloud_control_costs/
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YSUXtjiGhmPLFCf@37TCpwAAAJc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[17] https://aws.amazon.com/blogs/aws/happy-15th-birthday-amazon-ec2/
[18] https://whitepapers.theregister.com/
Either gender fits here
OTOH, they are frequently claimed to be a bunch of...
With the amount of money they suck down, well, it may be the correct term that started the whole thing.
To be honest, most companies are now trying to pare their cloud spend to the bone
"spare a thought for the bean-counters"
Why ?
They don't deal with anything. They just jot the numbers down and call the head of the appropriate department to tell him that his budget is gone and he needs to find more money.
They're not the ones who have to correct the situation.
Re: "spare a thought for the bean-counters"
and call the head of the appropriate department to tell him that his budget is gone and he needs to find more money.
But what if you are in the middle of a packet of cookies and you have to make the call?
"They're not the ones who have to correct the situation."
Right, they can only make it worse...
worrashock
So companies, who've frequently gone for the cloud because they couldn't forecast what they needed on their own hardware, have used more than they intended....
Amazon Cloud Services are like 'Hotel California'
in that, once you are in, you can never leave unless you die.
Azure and other ones are almost as bad.
They have your business by the short and curlies. I wonder why this has not become a verifiable business risk? What is the 'Plan B' for companies that are locked inside?
Re: Amazon Cloud Services are like 'Hotel California'
Well you see, if the parasite kills the host, then the parasite dies. Cloud service providers know this, so they make sure not to charge too much. They want to kill off the smaller companies, but keep the whales alive. I bet a coke, a Mexican coke made of real sugar because it's the Lexus of coke, that the managers of the cloud services use their sales metrics to determine which companies to invest in, so they have some fat portfolios of tech stocks that they know are doing well.
Amazon rolled out the **pubic** beta - I think you may want to proofread the article again...... just saying.... or fix the sticky L key