26th February, 2024
2 Min read
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As we navigate through the evolving landscape of IT infrastructure, a closer look at the cost trends for 2024 reveals significant shifts. From cloud expenses feeling the pressure of economic changes. With global cloud spending expected to hit over $1 trillion and various sectors facing unique challenges, staying informed is more crucial than ever.
Dive into our analysis to understand these trends and prepare for the year ahead.
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1) Cloud Cost
Fueled by inflation, high energy costs, investment reduction, and a general economic slowdown, cloud providers are currently raising their prices—either directly through price increases or indirectly by introducing new restrictions, adding additional cost components, and reducing discounts and funding. Based on last year’s data, we anticipate an average increase of approximately 13% in Cloud Costs for customers.
By the way, global cloud spending is expected to surpass $1 trillion in 2024, with a compound annual growth rate of 16%.
2) CDN Cost
The time for unsustainable bit pushing is over, CDN’s prices have typically been going down, especially for customers with tens of PB per month. With several big players going out of business in 2023 and 2 of the biggest players in the market far from being sustainable. We expect the first year of CDN prices surge to hit in 2024. Furthermore, there is a lower demand in the market for managed CDN Services as young IT professionals are drawn to the Cloud. We are not comfortable giving a forecast in numbers, but CDN pricing will start to adapt to inflation as there is no margin left to squeeze.
3) Data Observability
In recent months, we have observed a cost surge, particularly with major Observability and SIEM platforms. Several customers received unexpectedly higher bills. Many of these platforms will also experience increased infrastructure costs and heightened competition in the market.
Any other areas that you have observed?
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