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Best of 2022: Three Cloud Trends to Watch in 2022
As we close out 2022, we at devopsy.kinsta.cloud wanted to highlight the most popular articles of the year. Following is the latest in our series of the Best of 2022.

Many developers and startups view cloud services as simply “compute”, “storage” and “networking.” The cloud has matured to the point where customers often don’t think about the underlying infrastructure, service levels or debate the merits of on-premises versus cloud&;mdash;instead, they are increasingly cloud-first. In fact, December of 2021 marked Amazon Web Services (AWS) marked its tenth AWS re:Invent conference—the company’s annual conference for customers and partners.

While many startups don’t think twice about centering their IT strategy around the cloud and SaaS offerings, the enterprise has been slower to adopt cloud computing at scale. The conversation for these companies revolves around security, compliance, SLAs and the loss of control over their technology stack. In many ways, little has changed about the questions that enterprises are asking about the cloud.

As the year starts, I’ve been reflecting on various conversations I’ve had with a variety of IT and business leaders, Digital CxOs and vendors. Below are three trends that I will be tracking this year.

1. Alternative Vendors Gain Momentum

The “big three” hyperscalers continue to dominate the market and garner the bulk of customer and partner attention. However, we are seeing increasing interest in the alternative cloud market. The alternative market includes vendors outside of the big names (AWS, Microsoft Azure, Google Cloud, Oracle, IBM and Salesforce). Developers and businesses are increasingly looking at alternative vendors and their offerings because they are easier to use than hyperscalers, less expensive and offer more predictable pricing models. In addition, with the tight labor market, hiring developers that are, for example, AWS certified can be extremely expensive. On the other hand, because alternative clouds are less complex, developers do not need to have the same certifications.

You might ask: What about the global scalability, quantum computing and/or the thousands of APIs that the hyperscalers offer? The truth is that most small and midsize businesses don’t actually need any of those capabilities and don’t want to help subsidize the R&D that these technologies require. Companies to watch in the alternative cloud market include Linode, Digital Ocean, OVHcloud, UpCloud, Hetzner and Equinix Metal. In 2021, Techstrong Research published a report, DevOps and the Alternative Cloud, that dives deeper into these alternatives.

2. Industry-Specific Cloud Ecosystems Expand

Banking, insurance and companies in other highly-regulated industries have been slow to adopt cloud computing. However, the market is quickly evolving and businesses are rethinking their approach to the cloud. One of the reasons these regulated companies are starting to invest more heavily in the cloud is because customers have heightened expectations when it comes to how they engage with businesses. If customers are unhappy, it’s easier than ever to find alternatives. These highly-regulated companies and industries are being increasingly challenged by fintech, insurtech, healthtech and other industry-focused startups.

Just as importantly, vendors are realizing that one size doesn’t fit all. Regulated industries need specific clouds that meet their regulatory and compliance needs. These industry-focused clouds aren’t being designed as an entire ecosystem where a variety of technology partners can offer their software to regulated industries. Instead, vendors have taken two different approaches to offering industry-specific offerings. Some providers are offering pre-built but customizable applications. Some notable announcements in the area of banking clouds include the following:
- Goldman Sachs and AWS are working together to create data management and analytics solutions for financial services organizations (announced at re:Invent 2021). The result of this collaboration is the Goldman Sachs Financial Cloud for Data. It’s unclear if AWS will be offering a more general financial services ecosystem in the future.
- IBM continues to grow its Cloud for Financial Services in terms of signature clients and partners. IBM built its cloud for financial services in collaboration with Bank of America, then hired the bank’s CTO, Howard Boville, to head up IBM’s hybrid cloud business.
- Microsoft announced general availability of the Microsoft Cloud for Financial Services in November of 2021 (interestingly, it’s not named Azure for Financial Services). The company already has a large footprint in the financial services industry, and we’ll be tracking the adoption of Microsoft Cloud for Financial Services closely. In September 2021, Wells Fargo unveiled their digital infrastructure strategy that relies heavily on its partnership with Microsoft, but there is no mention of Wells Fargo using the Microsoft Cloud for Financial Services.
I expect other industry-specific clouds to follow a similar pattern—with large vendors partnering with key industry incumbents to create cloud ecosystems that meet the performance, security and compliance requirements for that industry. For example, you can certainly imagine Oracle creating a Cloud for Health Care after the acquisition of Cerner closes.

3. Software Supply Chain Becomes a Key Security Focus

“Supply chain” was a key phrase across all industries and job functions in 2021. I’m particularly tracking the software supply chain—which, as you can imagine, is immense and complex. In essence, your software supply chain includes anything that might impact your software. That includes APIs, cloud services, containers, your DevOps pipeline and all of the open source components that you use. Software has many dependencies, and understanding the supply chain is critical to knowing your security and risk exposure. Take, for instance, the recent Apache Log4j vulnerability. Use of Log4j is pervasive, but how many companies were actually able to quickly identify what software is at risk? Check out Alan Shimel’s December blog post, Log4j: It’s All About the Supply Chain, Baby! to learn more about software supply chain security. In addition, API security is going to be a very hot topic in 2022.

However, people remain the number-one cybersecurity threat. Although complex cyberattacks by ransomware gangs and state-sponsored actors get much of the attention, cloud misconfigurations and unpatched software are likely your biggest threats. Understanding your software supply chain will help uncover potential weak points and allow you to add automation, observability and/or other security tools to help spot potential problems.

The Cloud Evolution

Although the cloud isn’t new, the cloud market is continually evolving. While the developer community has been quick to adopt cloud computing, large enterprises have lagged—and regulated industries have been even slower. The alternative cloud market is offering different options for developers and businesses that don’t want the complexities of hyperscalers and don’t need their endless options and global footprint. At the same time, regulated industries are changing their cloud strategies thanks to cloud offerings that are uniquely focused on the challenges of their industry. Finally, you need to secure your software and data no matter where it resides. Focusing on your software supply chain will help ensure you can react to security vulnerabilities and update elements when needed.
December 29, 2022
Overcoming Multi-Cloud Management Challenges

We’ve long talked about how the cloud is the future. But with the vast majority of corporate data now stored in the cloud, it’s clear that most businesses now realize this is a must-have in today’s increasingly demanding and agile business environment.

The cloud has been the backbone of the remote restructuring of the workplace over the last few years, enabling organizations to access data flows and critical workloads no matter where their employees are stationed. So much so that there’s been a dramatic rise in the number of enterprises deploying different service providers as part of a multi-cloud strategy. This enabled them to pursue greater agility and flexibility within a hybrid environment.

Recent research from Wanclouds found that most IT professionals use two or more cloud platforms today—and just under half (48%) said they used a mix of public and private clouds. However, the reality is that the more cloud environments your organization use, the more complex it becomes to both manage and secure them. Here are three multi-cloud management challenges impacting IT teams today and how they can overcome them.

Maintaining Uptime in the Face of Rising Security Challenges

Avoiding downtime has never been more important, nor has it been more challenging to achieve. Extreme weather events are becoming more frequent and increasing the risk of natural disasters or power outages, leading to data loss. In fact, 65% of U.S. and UK IT decision-makers said their organization experienced at least one data loss incident last year, while 21% admit they experienced two data loss incidents.

But it is, perhaps, the security challenges that pose the biggest threat to IT departments and the developer teams they support. Since the onset of COVID-19, organizations have been targeted for cyberattacks far more often and have been infiltrated by cybercriminals much more quickly. According to McAfee, there were 3.1 million cloud-based cyberattacks in 2020 alone. Unsurprisingly, these attacks are fueling concern in IT circles. 88% of U.S. and UK decision-makers said they’re at least slightly worried—and 15% are apprehensive—about cloud workload security in 2022.

While multi-cloud environments enable developer flexibility, they also cause inherent configuration and visibility problems, and this is where cyberattackers can take advantage of weaknesses. The complexity of migrating data across different cloud platforms and operating systems can also lead to delays with patching. The key is often ensuring visibility across these platforms and maintaining interoperability. Security platforms for multi-cloud environments must be set up to share threat information across providers and platforms. If not, threats can easily be missed, or even if they are detected, the response across infrastructure will be too slow to minimize damage.

With businesses accelerating their goal of becoming 100% cloud-native in the next few years, a cloud-based disaster recovery strategy must also be embedded within their management plans. Without one, every business risks losing vital data and having their systems, operations or services shut down by natural and man-made disasters, security risks, hardware failures and power outages.

Staying on Top of Hidden Charges

Cloud spending has skyrocketed in the past two years, and all signs suggest that organizations will continue to allocate more of their IT budgets to the cloud over the years to come. But not every business has the same resources as, say, Apple, which reportedly spent over $30 million a month on Amazon’s cloud, according to a 2019 CNBC story. The reality for most IT teams is that they’re constantly battling hidden charges and unexpected cloud costs that threaten to blow up their entire IT budget.

In fact, in Flexera’s 2022 State of the Cloud report, respondents self-estimated that their organizations wasted just under a third (32%) of their cloud spend, up from 30% last year. Meanwhile, Wanclouds research found that 54% of British and American IT professionals say they have been hit with unexpected cloud costs in the past year.

It’s a severe problem throwing IT teams for a loop from the migration stages of the multi-cloud plans right through to management and maintenance. Sure, cloud providers like Amazon provide basic tools for resource tracking and spend visibility. But truthfully, these features generally fall short of providing real-time and enterprise-wide insights on how to optimize costs.

To eliminate the sticker shock of unanticipated cloud costs, organizations need to have a defined plan for cloud cost management. Again, company-wide visibility into their cloud platforms’ billing systems is imperative and a way to track spending across their multiple accounts. It’s vital for companies to properly tag the infrastructure for understanding costs and maintain up-to-date inventory of all the resources.

Meeting Multi-Cloud Compliance Requirements

Every cloud user must comply with specific regulatory standards following industry guidelines and local, national and international laws. Organizations in the health care space, for instance, must comply with HIPAA rules, which are essentially a set of national standards to protect sensitive patient health information from being disclosed without the patient’s consent or knowledge. Meanwhile, manufacturing IT teams must abide by stringent intellectual property security protocols and protocols for other sensitive data like PCI and PII.

Ensuring compliance across multiple cloud environments is necessary, but undoubtedly a challenge. This is especially true in today’s attack-filled security landscape, where internal threats can pose as much risk to data security as external attackers. (32% of the organizations surveyed by Varonis found incorrect access authorizations and privileges assigned to users). Not to mention compliance requirements are constantly changing, making it even more difficult for organizations to meet demands.

This is why every IT and security professional invested in the cloud needs a solution that lets them set up compliance policies against their cloud infrastructure, making it easy for them to ensure compliance requirements in the case of any unforeseen natural disasters or security incidents. We’ve seen the damage that just one data breach can have on a business—costing them millions of dollars in cleanup and leaving them with considerable damage to their reputation. It’s imperative that an organization’s entire multi-cloud strategy prioritizes compliance and the security of sensitive data.

August 17, 2022
How to Respond to Rising Cloud Costs
As organizations ascend to the cloud, their cloud expenses are floating to the same lofty heights. But are all cloud costs necessary? The answer is a resounding no — there’s a lot of waste.

In 2020, organizations wasted $17.6 billion on idle cloud resources and cloud overspending, according to ParkMyCloud. Data egress, upgrades and subscriptions to SaaS tools also crowded the cloud invoice inbox. With digital innovation a pressing concern, cloud spend is forecasted to rise significantly in the coming years. Without the right fiscal discipline in place, companies face escalating fees.

I recently met with Eugene Khvostov, VP of product management at Apptio, to discover how organizations can rein in cloud and SaaS spending. According to Khvostov, IT departments require increased visibility, optimization and responsibility if they are to curb the cloud checkbook. Below, we’ll see what he means and discover useful tips for reducing unnecessary expenditures. Following these general guidelines could help right-size your cloud offerings across AWS, GCP, Azure and other cloud-based tools.

Where We Are With Cloud Costs

The pandemic has ushered in significant growth in the cloud computing and SaaS space. We’re also seeing a multi-cloud fracturing effect, as cloud service providers like GCP and Azure reach parity with AWS offerings.

Cloud tooling grants extraordinary flexibility, elasticity and scalability. Being able to spin up or wind down an instance on a whim has permanently altered how software architecture is built. Yet, with great cloud power, comes great responsibility. “How do I make sure I’m not wasting money in the cloud?” Khvostov asked.

According to Khvostov, as more organizations move to hybrid and decentralized multi-cloud models, more and more questions arise: What is the total cost per service? Who is spending what? Is cloud spend actually driving growth, and, if so, how much? How are new tools being procured?

Three Cloud Financial Management Strategies

To address these concerns and plan for cloud spending increases, Khvostov recommended three general strategies. These three phases can be thought of as research, remediation and prevention.

1. Access and Visibility

“You’ve got to have access and visibility,” said Khvostov.

First, companies require access to their spending data. In this case, large, general invoices are not granular enough. You need breakdowns by service, said Khvostov, to access more fine-grained spending habits.

Second, you need to equate those spending habits to team usage. This requires improved visibility into your organizational structure and service usage tracking at a team-by-team level.

2. Optimize

Next comes optimization. Ensure cloud footprints are appropriately sized for each application, and ensure you don’t have any idle resources, Khvostov said.

Where do you have the opportunity to optimize? Well, it could be as simple as shuttering an orphaned volume, such as an Amazon Elastic Block Store (EBS), which could persist even after an EC2 instance is terminated.

“BS volumes tend to persist unless you select the Delete on Termination,” AWS explained. So, check your configurations. Amazon provides a way to detect this using OpsCenter.

3. Responsibility

Once things are optimized, you need to maintain standards. “You must ensure teams drive responsibility for spend management and optimization,” said Khvostov.

But how do you instill an optimization mindset and empower engineers to take action? Khvostov said it’s all about demonstrating a measurable return on investment (ROI) and continuing discussions between stakeholders.

A recent report from A Cloud Guru found that 90% of organizations plan to expand their cloud services over the next one to three years, but 44% lack a plan to upskill their workforce. Most groups have their work cut out for them if they are to assign accountability for cloud costs ownership.

Specific Cloud Costs That Bite

So, what are some other particular areas we should be watching? Well, arguably, the most common cost is hidden data transfer fees. Surprise ingress and egress fees can be costly — take the story of Chris Short, whose personal site was charged $2700 for an unexpected 30.6 TB data transfer.

Watch out for other cloud costs around:
- Services automatically launching or autoscaling.
- Idle resources due to “orphan” instances or overprovisioning.
- Price lock on granular commitments. You could be stuck in a savings plan on an Amazon EC2 R5 instance, which would be lost upon upgrade to R6. (Khvostov acknowledged that AWS has remedied this situation, to an extent).
- Legacy, less-efficient code can rack up cloud costs, The Information reports.
The Cloud Economist Role Is Trending

To unearth these costs, some believe a brand new role is required. A cloud economist is a cloud financial manager that helps spot fees, directs further cloud optimizations and calculates overall ROI from cloud investments.

The rise of cloud financial offers is an accelerating trend, Khvostov said, one that requires the right tools and practices within an organization to become a trusted ally. “It’s definitely a legitimate role in the sense that it’s critical to organizations,” said Khvostov. “It’s specialized enough that it requires technical and financial skills.”

Hiring a cloud economist, or building a cloud financial center of excellence, could provide a lot of value. Yet, gauging the ROI of this role isn’t immediately obvious. Some optimizations could take time to visualize, Khvostov said. A certain change could instantly invoke 20% cost savings, but you may not register that impact for 30 days or more.

“It’s not just about cloud infrastructure — it’s about your SaaS spend, as well,” Khvostov added. He believes companies desperately need a window into what infrastructure-as-a-service (IaaS) and automation, like Chef or Jenkins, cost, along with the time savings and dollar ROI their usage equates to — because, he said, “You can only right-size what you know.”

Trimming Cloud Spend and Cloud Costs

Some IT folks simply fail to understand the implications of their cloud resources. Surprisingly, a recent survey by SoftwareONE revealed that 30% don’t realize that everything in the cloud is metered. To rectify this knowledge gap, organizations could use better awareness into their cloud holdings.

The cloud is the future, and we must prepare responsibly. Yet, having fiscal discipline in a world where every software function is commodified “as-a-service” is tricky — teams require financial visibility into their cloud holdings. To rein in costs, Khvostov recommended treating it as a continuous process: access and visualize spending data, optimize your existing cloud footprint and disseminate responsibility among teams.

Once you have a better frame of reference, you can begin to right-size cloud, right-size SaaS and appropriately right-size the team. Eventually, with the right multi-cloud and SaaS financial management strategies, perhaps that cloud bill will start to feel a little lighter.
March 1, 2021