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Vantage customers
Q2 2023
How Businesses are Allocating Cloud Spend in Q2 of 2023
Fresh off the quarterly earnings for Microsoft, Google and soon Amazon — where cloud spend is slowing as companies focus on cost optimization — we are releasing the Q2 2023 Cloud Cost Report, an analysis into cloud usage based on anonymized Vantage customer usage. Vantage is a cloud cost management and optimization platform with a unique view into industry trends thanks to tens of thousands of connected infrastructure accounts across 11 cloud providers. To discuss this report in more detail, join our growing Slack Community of over 1,000 engineering leaders, FinOps professionals, and CFOs. View past reports here.
Get a PDF of this report.
Top 10 Services by Spend Across Clouds
It's never been easier to choose the right cloud for the right workload. In Q2 we measured the top services across AWS, Google Cloud, and Azure and found a different mix of services dominating share of costs on each.
"With Google Cloud, we’ve been really embracing an open architecture. We’ve embraced customers wanting to be multi-cloud when it makes sense for them."
- Sundar Pichai, CEO at Google during their latest earnings call
With Google Cloud, BigQuery helps drive big data workloads that then also consume spend for Bigtable, Spanner, and Cloud SQL. On AWS, the ranking of spend is more traditional with compute, data, storage, and monitoring services dominating the top 10. Compute, whether EC2, Compute Engine, or Virtual Machines consistently draws around 30% of spend. Organizations are increasingly becoming more multi-cloud focused, choosing certain clouds for certain portions of their workloads.
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EC2 On-Demand Spend is Ticking Back Up
The last year has been a chaotic time where organizations have been performing optimization en masse. Recently, spot instance prices have trended higher to converge with on-demand rates. After customers overwhelmingly made investments in committed usage, we're beginning to see on-demand spend increment back up over 40%
On average over the past year, a little under 40% of the spend we recorded on EC2 came from on demand instances. This may be the result of optimization fatigue or the impact of the spot market pushing customers back to on-demand.
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Graviton is Growing Quickly for Managed Services
While we have previously tracked Graviton adoption for EC2, where the vast majority of spend for that service still goes to Intel and AMD based instances, there is a different story for RDS, ElastiCache, and OpenSearch.
In fact, we found that an astounding 77% of OpenSearch costs and 57% of ElastiCache costs came from Graviton based instances in Q2. Looking deeper, we can see a few reasons. For one, there are no Intel or AMD instance types available in the newest generation for these services. Secondly, this graph reflects the degree to which certain services can be upgraded. For example, it's probably easier to upgrade a cache vs updating your RDS database to capture cost savings.
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Upgrade to RDS GP3 Volumes
Since the release of the GP3 volume type for RDS we have been tracking its adoption and this quarter we saw a doubling of the share of RDS storage costs on GP3 with a continued decline in GP2.
This is great news as the introduction of new volume types can sometimes take a while to become the standard practice. These volume types offer better performance in certain situations or at least on par performance from GP2. It's most likely worth it to upgrade.
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