Matthew Lynn, Director, Cloud Computing, APJ, Akamai Technologies.
Companies are rethinking — and questioning — their cloud investments and feeling pressure from bill shocks and other challenges associated with closed hyperscaler environments.
In fact, many companies are suffering from the “weakness of the cloud,” according to APJ director of Akamai Technologies, cloud computing, Matthew Lynn.
Akamai is a cloud company that powers and protects life online. On a given day, it supplies 15 to 30 percent of the Internet.
“The cloud continues to fail to live up to many of its early promises. Going back 10 years, a lot of companies were saying, ‘I need to move all of my IT to the cloud, I need to work on one platform.
“What’s more, people initially thought that the cloud would reduce costs. Yes, there is a lot of agility and speed in IT operations, but at the same time customers have realized that there has been a huge financial penalty. It sounds great to begin with, but as organizations scale, that cost has become a major issue.
Akamai, for its part, is focused on three key technology pillars – connectivity, security, and cloud computing – and is actively increasing its presence in the cloud world after acquisition of Linode, which builds a cloud-to-edge distributed computing platform.
Lynn said many companies are reevaluating their cloud options — a move driven by multi-cloud capabilities — due to a number of factors, including cost, reduced availability and loss. of data, and avoid customer shutdown.
“There is a dynamic change today as many companies are beginning to realize that they need to move to a multi-cloud infrastructure – and that they need to bring some contention into their underlying infrastructure strategy to have multi-cloud capabilities. .”
The troubling issues, according to Lynn, are the fact that an “oligopoly cloud” hangs over the industry.
“Although many people believe that there is a lot of market competition, and that it is an oligopoly we are seeing an increase in the margins (of hyperscalers) – from 18 to 30 percent in recent years.
“Undoubtedly, the cloud computing giants are competing to protect their fat profits. More and more IT companies are donating a lot of their costs and their COGS (cost of goods sold) to these providers. owners – and they’re keeping their businesses.”
According to Lynn, cost is always important. “Cloud bills are increasing by 30 percent every year.
The biggest cloud spenders have been able to manage rising costs. Airbnb, Dropbox and Netflix have said they have significantly cut their software costs by bringing some systems on-premises or sharing them with multiple cloud providers. Airbnb, in particular, reduced cloud costs in 2020, achieving savings of $63.5 million.
“For large organizations – especially in this climate – there is no longer a cost-effective growth program running in the environment. Many of these high-tech companies are rethinking how to drive margins and profitability across the industry.”
So, what is the answer to these growing challenges and the most pressing obstacles plaguing the industry?
Examining different cloud options, Lynn said, starts with planning for the future so that companies don’t get locked into a single provider and can retain control of their endpoint. .
“Think of other cloud solutions that offer flexibility, affordability, and open source, as well as flexibility, affordability and availability for developers to use cloud computing,” he said.
And it’s time to say that Australia’s cloud computing spending is set to reach $20 billion by 2025, according to GlobalData.
In fact, enterprises of all sizes will look to invest in the cloud to drive their transformation initiatives while allowing them to automate business processes, use digital channels for better customer interactions and support their employees with remote work.
“At Akamai, we want to shake up the market. Linode is a new cloud computing offering, bringing simplicity, affordability, ease of use, open source and sharing to all that information.
“There are more and more technologies and tools that allow organizations to build, manage and secure applications from the cloud. Instead of using all the proprietary features in a cloud provider, there are tools such as Kubernetes, Terraform, and Ansible, among others that allow organizations to work in an open way.
The beauty of open source programming is the freedom of choice, Lynn explains.
“Many customers are very closed to their hyperscale cloud. Linode is very focused on open source technology because it allows users to move their cloud operations to the most productive place.
But hope is a journey, not a rush. “It’s not an easy transition for many organizations. But we urge them not to lose heart. Don’t just sit back and continue to use the same set of tools. Plan how you will create some controversy in your environment two to three years later.
“Start thinking differently about delivering the right jobs from the right infrastructure.”