Cloud isn’t immune to macroeconomic shifts. As inflation and interest rates rise, so do the costs of providing infrastructure and platform services.
Some of the larger cloud providers undertook cost control measures to help customers optimize their spending over the last year. Microsoft extended the useful life of cloud servers and network equipment in June 2022, saving billions in an effort to lower customer bills. IBM followed suit at the start of the year.
Across the largest cloud providers, including AWS, Google Cloud and Microsoft Azure, the cost of on-demand instances increased 2.5% last year, well below the inflation rate, according to a February cloud market analysis by Liftr Insights.