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WIRE

Why You Might Want to Rethink Cloud Services

Growing tech sart-ups are moving out of the cloud as costs outweigh benefits.

For Silicon Valley tech start-ups, cloud based services are the prevailing method used to harness computing power and build business, but some start-ups are leaving the cloud and turning to old fashioned tech, reports Wired

Why? The outlet reports that as companies scale, the cost of renting virtual servers from giants like Amazon can begin to outweigh its benefits. 

“Within IT departments, public clouds do tend to get more expensive over time, especially when you reach a certain scale,” Kit Colbert, an engineer at VMware, a software company that specializes in cloud services, told Wired

The article cites that numerous companies--including Zynga, MemSQL and Tradesy--have recognized the costs associated with virtual servers as companies grow and have moved their operations and data centers in house and onto physical servers. 

“The public cloud is phenomenal if you really need its elasticity,” MemSQL CEO Eric Frenkiel told Wired. “But if you don’t--if you do a consistent amount of workload--it’s far, far better to go in-house.” Frenkiel estimates that MemSQL will save about $700,000 over the next three years by moving out of the Amazon cloud. 

By hopping out of the cloud and shifting computing to in house servers, companies do lose the ability to increase and decrease the number of servers they use, as need changes and they do lose the back-up security of the cloud, however. 

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