How are you thinking about cloud costs today knowing generative AI is likely to reshape your cost structure in the near future? Do you see current cost management strategies becoming obsolete, and if so, what new approaches are you starting to explore?
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VP IMIT & CIOa month ago
From an AI perspective, we are still trying to figure out the cost-value equation. I am hoping for rightsizing in the marketplace with respect to GenAI capabilities, but for now, it is a wait-and-see game. We do not have direct metrics to suggest a good ROI at this point.
no titlea month ago
This is what I am hearing from most CIOs as well. Everyone says not to ignore AI, but the response is, “What’s the return? What am I really getting back? What will the spend be?” As long as those questions are unanswered, I think progress will continue at the current pace. We will see what happens as the landscape evolves.
The nature of the question indicates that someone believes there is a solid and single cost management strategy for managing cloud costs. There is not. Whether you are using the cost estimator in AWS, a consultant firm, or some third party tool, finding the optimal cost strategy is unique to each individual footprint. It also evolves as the footprint evolves. Generative AI will have an impact on strategy provided you have the training to get the most out of it.
Developing a robust cost management set of criteria is just as much artwork as it is research. And it depends largely on the length of time you are looking into the future. I like to keep my eye on a date that is 3 years into the future. This typically allows me to take advantage of any deals that are happening at the moment, using service plans and pre-paid instances, and allows for just enough flexibility for the environments to evolve and change while the software is doing the same.