Enterprises entered an optimization cycle last year, trimming back cloud spend as the economy cooled. Storage services took a particularly hard hit, due to overprovisioning in prior years and a shift to pricey graphics processing units to fuel the emerging generative AI boom.
“There was a GPU gold rush that hurt storage spend quite a bit,” Hahn said. “If your out-of-pocket is going towards buying these really expensive GPU services, there’s less left for storage, networking and a lot of other things.”
