DevOps Articles

Reducing Cloud Spend Need Not Be a Paradox

Few people know cloud transformation from the perspective of Martin Casado. The post challenges conventional thinking about the mania surrounding cloud transformation and cloud migration, and it calls us to think about the impact of cloud infrastructure cost (and the impact this, in turn, has on company valuation). A recent blog from @a16z made the case that for SaaS companies, the cost of cloud is a drag on their market caps.

Consider the broad universe of at-scale software companies utilizing public cloud infrastructure, and you can quickly see that this $4 billion of unrealized profit could be far higher.

This can lead to shrinking profitability as a company scales, and as a result of that, the growing cost of cloud infrastructure equates to hundreds of billions of dollars of equity value of software companies as they reach scale.