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Most businesses think hyperscalers overcharge for cloud services

cloud digital transformation
(Image credit: Shutterstock / issaro prakalung)

Most businesses are under the impression that hyperscale cloud providers overcharge for their services. However, many are reluctant to switch providers due to potential security and downtime issues.

This is according to a new report from cloud-native service provider Civo, based on a poll of 1,003 cloud developers, which states that vendor lock-in is not the reason most businesses hesitate to switch providers. Instead, it's the idea that the big players (Amazon Web Services, Microsoft Azure and Google Cloud Platform) are generally more secure and have better uptime than the competition. 

Many businesses also think the big three could charge less for their services. More than four in five (82 percent) believe hyperscalers should scale prices down, while more than two-thirds (68 percent) even said hyperscalers were misleading with their messaging around price. 

Roughly three-quarters (74 percent) of businesses have seen their cloud costs rise in the past twelve months, with the average increase sitting at 66 percent. At the same time, hyperscalers have seen their revenue grow between 25 and 30 percent year-on-year - a trend predicted to continue for at least the next few years.  

“Amazon, Google and Microsoft have all suffered high profile outages in the last year. Users of Amazon alone have suffered 27 outages in the last 12 months. Size is clearly no guarantee of uptime when it comes to cloud providers," said Mark Boost, Civo CEO.

"The additional complexity involved in securing public cloud endpoints using the hyperscalers means they are far more likely to be left insecure, and this is evidenced by the number of data breaches caused by simple misconfigurations of services like Amazon S3 or Microsoft’s Azure Container Instances."

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.