UII UPDATE 209 | Q3 2023
Intelligence Update

Always consider reserved instances to squeeze cloud costs

Owen Rogers
1 Sep 2023
4 min read

The key benefit of cloud computing lies in its on-demand pricing model. This enables organizations to grow or shrink their applications at will without giving the cloud provider any advance notification. The cloud providers can offer such flexibility by allowing customers to pay their bills in arrears based on the resources consumed.

Increasingly, organizations are trying to find ways of reining in the costs related to this flexibility. According to the Uptime Institute Data Center Capacity Trends Survey 2022, among the organizations that moved workloads from the public cloud back to on-premises infrastructure, 42% cited escalating costs as the top reason for doing so.

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