Cloudyn Customer Insights Revealed at Under the Radar

April 25 2012 | by Sharon Wagner Cloud Cost, Cloud Economics, Cloud Optimization, Cloud Pricing

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I’m excited to share with you that tomorrow I’m presenting a company overview at Under the Radar, a leading event that presents a “handful of the industry’s most compelling emerging startups that provide cutting edge solutions.” Out of hundreds of companies considered, Cloudyn was selected as one of only 30 companies to present at this unique event–an event which has helped to introduce some of the biggest companies in tech today (UTR alumni include: LinkedIn, Flickr and Pandora). We’re thrilled to have such a great venue to show the industry Cloudyn’s value proposition.

Additionally, I plan to speak with folks during the show about trends we’ve identified since our GA launch on February 6, 2012. We also wanted to share these with you today.

In the past two months, Cloudyn has seen a 500% growth in monitored virtual servers (with more than 250,000 monitored every day). This increase has given us a deeper picture into what is happening in organizations spending an average of $100K annually in the cloud.

Below is a quick distillation of some of the patterns we’ve identified in that time:

  • Reservation vs. On-Demand: Despite recent changes to Amazon’s reservation system most users are still using the more expensive On-Demand pricing option, illustrating the need for a cloud cost management tool.  However, that is changing. In January 2012 less than 20% of Cloudyn customers used the reservations model, now at 45%.
  • Lack of Insight is Costing Business Big $: Many businesses still are largely unaware of the benefit of using reservation instances in the cloud. Of Cloudyn customers that could benefit from Heavy Utilization rates, only ~30% use the model. Of users that could save with Light Utilization, less than 1% currently use reservation models.
  • Pricing Models and Time of Usage Matter: Recent changes in AWS reservation offering/plans followed by price reductions, made the light reservation instance most cost effective for any instance running ONLY 23% of the year or more.
  • Short Window Deployments and Cost Impacts: Cloudyn has seen that 75% of all launched instances are running less than 12 hours. Of these short-running instances about half are performing recurring tasks, and could have run under a Light Utilization plan, but their owners are not aware of that.
  • Cloud Usage Fluctuating: Cloudyn’s customer overall cloud utilization is growing – consistently by 7% per month with weekly usage spikes of up to +/-70%. This behavior supports market data that shows the typical cloud application is typically changed at least twice a month to add more data, power or storage. Spikes were often due to bugs, system malfunction, or errors with storage aggregation or instances left running.

As we continue to expand our services and customer base – we will provide further insight into cloud computing environments and usage patterns.

Next week I plan to share my thoughts on the Under the Radar event and the other companies I see as having a major impact on the growth of the industry.

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