Comment Re:The Cloud: pay rent for doing all the work (Score 1) 44
Actually, I don't think we were misinformed.
The reason so many companies spend wildly on Azure or AWS, is that they don't properly manage their resources. When you use the cloud, you have to think more about what you actually need.
The problem is a habit that came from the days when everybody self-hosted. They would buy a machine, stand it up, and use it. When that machine wasn't as useful, it wasn't costing them anything to keep it sitting there, so they just let it sit there, idle, or under-utilized. They *were* actually paying for this unused infrastructure, but it was "sunk cost" so they moved on and ignored it.
In the cloud, you have to keep paying monthly for every instance of everything that has been provisioned, (typically) even if you're not using it. Many companies neglect to take down instances they're no longer using. My company found that they could save $20K per month just be cleaning up old, unused instances of servers.
So if a company is disorganized and doesn't have the bandwidth to clean up old, unused infrastructure, then yes, the cloud will cost them dearly. For those that are disciplined, the cloud *can* actually save a lot of money compared to purchased hardware.