Don’t be fooled by slowing cloud growth: Cost optimization is a feature, not a bug

TheCUBE Breaking Analysis + upcoming livestreams [As predicted, cloud growth is slowing. But, is this the signal of a slingshot effect?]( The big three U.S. cloud players all announced earnings this past week and, as expected, cloud growth is slowing. But don’t kid yourselves. Hyperscale clouds remain the epicenter of innovation in tech, and foundation models such as GPT will only serve to harden this fundamental fact. In this week’s [Breaking Analysis]( theCUBE analyst Dave Vellante explores what explains decelerated cloud growth alongside the promise of large and long-term returns on investments. ETR data suggests the deceleration in cloud spend is a function of two related factors: 1) cautious consumption patterns; and 2) aggressive cloud optimization, which is being promoted by the big three cloud vendors in an attempt to lock customers into ongoing commitments. Breaking down cloud spend There is still no clear evidence in the numbers that repatriation of compute to on-premises data centers is a factor. Rather, the ability to dial down spending quickly and pause projects is an attractive feature of cloud computing and one that, until now, has never really been seen on a broad market basis. As far as AI is concerned, Vellante shares, “Foundation models are going to be a tailwind for all companies that can leverage them to cut costs and automate, but they'll be especially beneficial to cloud players and their customers from silicon to large language models and services up to the apps.” In this [Breaking Analysis]( you’ll also learn why cloud CFOs all cite optimization as a trend, quarterly IaaS data that shows Microsoft now has 80% of AWS revenue, how AI will affect business in the future, the near-term cloud outlook and more. [Get the full report]( [On theCUBE Pod: On location at RSAC ’23 with John Chambers on cybersecurity]( The latest episode of [theCUBE Pod]( hosted by industry analysts John Furrier and Dave Vellante, discusses the recent 2023 RSA Conference in San Francisco alongside AI, cybersecurity and media industry developments. This edition features special guest John Chambers, an acclaimed angel investor and former Cisco CEO. The "platformization" effect in cybersecurity is top of mind for the hosts as a crowded market looks to consolidate. Vellante notes that leading companies are attempting to simplify their cybersecurity product offerings, highlighting big players such as Palo Alto Networks, CrowdStrike Holdings and Cisco. For Furrier, this consolidation is a bad omen for the current economy when it leads software-as-a-service companies such as Dropbox to lay off employees. Is cybersecurity getting a do-over? Speaking of major industry shifts, Chambers weighs in on the question that many CIOs, CISOs and even CEOs are contemplating: Is cybersecurity getting a do-over? For Chambers, siloed products and data sets that are complex and require human intervention will no longer work. Instead, an architectural approach has become essential. This path should also consider how to lower cyber insurance, prevent attacks, shut them down quickly and recover from them.  Going forward, Chambers believes that companies will need to invest in next-generation security solutions that are designed to meet the needs of their businesses — especially regarding ease of use, installation and reliable architecture. In addition to prevention, companies will also need to detect and respond to cyber threats quickly while also having a clear plan in place for recovery in the event of an attack. A holistic approach to security is crucial, and successful companies will ensure the different elements required interface with each other efficiently. [This episode]( also addresses the alleged "implosion of mainstream media," noting recent layoffs of media figures, such as cable news hosts Tucker Carlson and Don Lemon, and the purported falsehoods such sources spread. [Watch the full episode!]( Join theCUBE! 'Navigating the Road to Cyber Resiliency' Dell Technologies and theCUBE are kicking off a series to bring together industry execs, subject matter experts, analysts, partners and customers to provide organizations with the information they need to navigate the road to cyber resiliency. [Read more]( siliconangle.com [Top News: Editors' Picks]( Nvidia, Amazon execs address new age of AI uncertainty When a tool as powerful as generative artificial intelligence becomes available at large scale, five-year business plans go right out the window. "You can practically hear the shrieks from corner offices around the world as people try to figure... [Read more]( siliconangle.com Is it time to deploy passkeys across the enterprise? It's a great time to think more about passkeys, and not just because this Thursday is another World Password Day. Let's look at where those 2022 passkey plans stand, and what companies will have to do to deploy them across their enterprises. [Read more]( siliconangle.com [Join theCUBE live! Extracting the signal from the noise.]( Join theCUBE for a full lineup of coverage from top tech events in cloud-scale, open source, high-performance computing, cybersecurity and hardware innovations. [AWS Industry Partners Showcase May 4]( Tune in this week for the inaugural episode of the AWS Industry Technology Partners Showcase, presented by Amazon Web Services and theCUBE. Season 1, Episode 1 addresses the media and entertainment industry, discussing optimization tactics for media supply chains. [Join theCUBE May 4]( to gain firsthand insights on driving the volume and velocity of media assets with the power of the cloud. [Open Source Summit May 10]( The open-source community faces a new chapter of innovation with the rise of generative artificial intelligence and other bleeding-edge advancements. Facing a sprawling threat landscape and ever-changing regulatory requirements, open-source technologies must keep pace. [Join theCUBE for live coverage of Open Source Summit on May 10]( as we explore these important topics. We bring you firsthand insights from top tech luminaries, along with use cases and best practices for modern DevOps architectures. [Navigating the Road to Cyber Resiliency May 16]( Cybersecurity is no longer a niche conversation relegated to a single functional group. Today, it spans board members, the C-suite, security practitioners, IT decision-makers, legal, LOB managers and more. Dell Technologies and theCUBE are kicking off a series of broadcast events to bring together industry executives, subject matter experts, analysts, partners and customers to provide organizations with the information they need to navigate the road to cyber resiliency. [Join us May 16]( for this inaugural program! [ISC High Performance May 22-24]( TheCUBE is extracting the signal from the noise at the 2023 ISC conference. [Starting May 22 and running through the 24th]( we’ll dive deep into the rapidly evolving field of high-performance computing for the enterprise sector. Join our conversations with technologists, academic experts, business leaders and practitioners to explore sustainability, efficiency and high-performance computing, Dell HPC, supercomputers being used by academia, HPC use cases, exclusive product announcement details and more. [Red Hat Summit and AnsibleFest May 23-24]( Even the best container strategy can’t contain all the possibilities for open source this year! [J]( theCUBE for Red Hat Summit]( where we’ll see how the community is leveling up K8s strategies, use cases in cloud-native journeys and the comeback of serverless. TheCUBE’s in-person coverage will feature industry experts, business leaders and practitioners. We’ll be ready to kick off your new trajectory with open source starting May 23. [Dell Technologies World May 23-25]( Join theCUBE’s industry analysts, use-case practitioners and Dell Technologies experts for coverage of its flagship conference.  Key topics include the latest advancements in edge and server solutions, as well as security, backup and recovery, storage, ransomware and more! [Stay ahead of the curve with theCUBE’s live coverage, starting May 23](. [Follow all theCUBE's broadcasts!]( SiliconANGLE Media Inc. | [SiliconANGLE.com]( [View as Webpage]( [[Twitter] ]( [[YouTube] ]( [[LinkedIn] ]( SiliconANGLE Media Inc | 5 Mount Royal, Suite 280, Marlborough, MA 01752 [Unsubscribe {EMAIL}]( [Update Profile]( | [Constant Contact Data Notice]( Sent by communication@siliconangle.com powered by [Trusted Email from Constant Contact - Try it FREE today.]( [Try email marketing for free today!](