#Google cloud money making software#
That’s why software is absolutely required to truly understand cloud spend at the enterprise level, said Apptio vice president Eugene Khvostov. And those bills are so complicated that no one could look at all that data and determine if they’re being overcharged, said Adler, who has seen Flexera customers with 12 million rows of information in a single monthly bill.
Even gaining visibility into where spending is coming from can be a challenge, because a company could have hundreds of engineers using resources, but only get one bill. The fact that most cloud providers bill based on usage also means that it's fairly easy to drive up costs if companies aren’t paying attention. In fact, nearly any employee with a corporate credit card can sign up for a SaaS application and pay for a service.
#Google cloud money making install#
“You don't need to get a purchase order out to your hardware provider, bring them in, pay for it up-front, get the hardware into your data center, install it and so on,” said Bertot. The other aspect that makes managing cloud costs difficult is that IT spending isn’t as centralized as it used to be.įor one, the ease of getting started on the cloud means it’s a lot easier to subscribe, deploy and then rack up large bills. But in the cloud, if you leave things running, you have to pay. In data centers “it didn't matter if I turned off my virtual machine, the physical host was still going to run and chew up money there was no benefit,” said Adler. So that's a new behavior that folks need to learn,” said Adler.Īt other times, because there was no reason to turn off applications in data centers, customers would leave virtual machines in the cloud running. But with the cloud, “I don't buy the peak, I can rent the peak. Instead of scaling up resources as needed, for example, many companies still feel the need to over-provision up-front. However, when many customers first moved from on-premises operations to the cloud, they often brought the old data center mentality along with them. The difference with the cloud is that provisioning “is something that you can demand and get online within minutes.” “But that was the way to do it that was the behavior that we had because I was hoping I would grow into it,” said Adler.īecause it took such a long time to purchase and deploy infrastructure resources when operating on-premises data centers, this was fairly common behavior, said Forrester Senior Analyst Tracy Woo. In response, IT employees would ask for as many resources as they could get, especially because most companies provisioned more computing power than they needed at the time. With data centers, it was common for CIOs to only purchase new technology every few years or so, said Flexera Senior Director Brian Adler.
The reason cloud costs can balloon so quickly is that managing expenses associated with compute power is a lot more complicated in the cloud than it was when companies bought and managed their own servers. She added that the growth rate in GCP was “meaningfully higher than that of Cloud overall,” led by infrastructure offerings and Google’s data and analytics platform, adding that Google Cloud saw new traction in areas including health care, media and communications, and supply chain optimization.That’s why SaaS companies like Flexera, Apptio and ServiceNow are helping companies lower their cloud subscription costs - as long as you subscribe to their services, which, of course, aren’t free. The revenue increase in Google Cloud was driven by “significant growth” in Google Cloud Platform (GCP) and “ongoing strong growth” in G Suite, Porat said. Microsoft reports earnings on Wednesday, and Amazon on Thursday. It’s the first of three tech giants with major cloud platforms that will report earnings this week. Google Cloud operates a large engineering center in Seattle, in a new campus that it opened last year. In a memo to employees on Monday, reported by Business Insider and CNBC, Pichai said that “everyone who is in a recommended or mandatory work-from-home status should assume that will continue until at least June 1, 2020.” He added, “Not everyone at a site will go back all at once – expect the return to be staggered and incremental.” Google Cloud posted the largest employee increase among the company’s product groups, in both technical and sales roles, said Ruth Porat, the company’s chief financial officer, on the conference call. In the first quarter, the company’s total headcount rose by more than 4,100, to 123,048 employees.
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