Autopilot - How hyperscalers solved the trillion dollar paradox

Originally published on FinKube.io

a16z published a seminal research piece and article around how there is a “Trillion Dollar in wasted value” due to unoptimized cloud spend among public SaaS companies but companies still have to use cloud to move fast, hence the paradox. That said, Hyperscalers have not been challenged by this paradox. The answer is a suite of technologies called “Autopilot”.

The Autopilot solution to the Trillion dollar paradox

INTRODUCTION

Last few years, we saw that the Pandemic of 2020 has accelerated enterprise spending on Cloud Services, finally dwarfing spending on Data Centers. This should be no surprise to long-time cloud watchers. Cloud enables the ubiquitous paradigm of consuming compute as a utility to accelerate innovation, drive enterprise agility and leverage AI/ML to make sense of the ever increasing pool of enterprise data. The need and imperative of the cloud operating model that stretches the enterprise beyond the physical borders of an office , has never been more pronounced than the age we now live in.

source: Synergy Research Group

As the spending on Cloud Services has accelerated, so has cloud computing waste. Cloud spending is already at a $100B base and still rapidly growing. With that growth, there is also an increase in cloud waste, which by some estimates stands at 30% of total cloud spend or $30B/year, and is accelerating.

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