Clouds come down to Earth, and prices go up, with a bang

The end of easy money, Elon Musk’s re-organisation of Twitter, and inflation have brought reality to cloud service platforms with a speed no one predicted.
Those us operating ordinary businesses have always known that cash flow is king and profitability is the definition of success. The idea that we might have a few thousand extra employees we don’t need any more would be crazy. But 300,000 redundancies later, and still counting, reality is catching up to the tech sector with a vengeance.

What does this mean for the customers ?

Price increases.

Every cloud business now has to have a plan to get cash positive and profitable, otherwise they won’t be able to access any further funding.
We expect to see quite eye-popping increases in cloud service pricing across the board over the next 12 months. To give one example, Google Enterprise platform pricing has gone from $12 to $28 in a year. That’s 133% “inflation”!

JustWorks Analysis

We have always advocated for the value of cloud services for what they enable, not what they save, based on our real life experience of tech deployment and our understanding of the mechanics of cloud services. Cloud services liberate businesses to operate more flexibly and adapt faster to changing markets. They transfer the burdens of lifecycle management, data backup, and security to the same people that write the apps – that’s more efficient but it does not eliminate the costs.
Increased attention to cybersecurity locally, nationally, and globally is combining with these changes to increase the cost of technology for every business. We may not welcome it, but it is unavoidable.

How JustWorks can help

Over 25 years we have built a business that stands on the same side of the table as our customers. We take on the risks of vendor selection, reliability, demand surge, and design. We also negotiate deals that leverage our scale and channel relationships to provide access to superior features and better pricing than any customer could on their own.
We may not be able to protect you from the general direction of price rises but we will do our upmost to make the transition as smooth and manageable as possible. Having JustWorks on your side means you can be confident that we are working every day to control costs and increase value.
To keep cybersecurity costs down we launched our SecureWorks service last year. This service provides the most cost effective way for businesses to boost their defenses and establish compliance. Customers have seen their audit scores move from D- to B+ in just a few months.

Whatever you want to do, we can help you do it better, faster, cheaper and more simply. If you are considering any changes, let us know how we can Make IT Simple for you.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.