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Optimize Cloud Resources: Cast AI Finds Over-Provisioning

TL;DR

  • Cloud providers utilize only 13% of provisioned CPUs.
  • Spot Instances underused due to perceived instability.
  • Automated optimization platforms can address over-provisioning effectively.

A recent study conducted by Cast AI, a provider of Kubernetes cost optimization solutions, has shed light on a prevalent issue within the realm of cloud computing. 

The analysis, based on data gathered from 4,000 clusters across Amazon Web Services (AWS), Google Cloud Platform, and Microsoft Azure, reveals startling statistics regarding the underutilization of provisioned computing resources.

Insights into Cloud resource underutilization

The study indicates that companies, on average, utilize only a fraction of the computing resources they provision. Specifically, a mere 13 percent of provisioned CPUs and 20 percent of memory are utilized, highlighting a considerable gap between allocation and actual usage. 

Across the three major cloud providers, AWS and Azure exhibit similar utilization rates, averaging at 11 percent for CPUs, while Google Cloud shows slightly better performance with 17 percent utilization. Similarly, memory utilization rates stand at 18 percent for Google, 20 percent for AWS, and 22 percent for Azure.

Factors contributing to over-provisioning

Several factors contribute to this discrepancy between provisioned and utilized resources. The reluctance of customers to leverage “Spot Instances” due to perceived instability, coupled with a lack of utilization of custom instance sizes, exacerbates the issue.

 Additionally, the complexity of manually managing cloud-native infrastructure, particularly in Kubernetes environments, hinders optimization efforts. Laurent Gil, co-founder and chief product officer of CAST AI, emphasizes that companies are still in the early stages of their optimization journeys, further complicating the matter.

Implications for Cloud providers and enterprises

From a financial standpoint, underutilization translates to reduced revenue for cloud service providers, as they continue to earn based on hypothetical usage rather than actual consumption. 

Moreover, over-provisioning necessitates higher investments in computing and memory resources, leading to increased carbon footprint through production and deployment. The study underscores the need for enterprises to adopt more efficient resource management practices to mitigate environmental impact and optimize cost-efficiency.

Addressing the issue

To address the challenge of over-provisioning, Cast AI advocates for the adoption of automated optimization solutions powered by artificial intelligence (AI). By leveraging AI-driven insights, organizations can identify and rectify inefficiencies in real-time, optimizing resource allocation and utilization. 

Through automated optimization platforms, businesses can streamline their cloud operations, reduce costs, and minimize environmental impact, ultimately driving sustainability and efficiency.

The path forward for Cloud optimization

The findings of Cast AI’s study underscore the pervasive issue of over-provisioning in cloud computing, with significant implications for both enterprises and cloud service providers. As businesses continue to grapple with the complexities of managing cloud-native infrastructure, the need for automated optimization solutions becomes increasingly apparent. 

By leveraging AI-driven insights, organizations can unlock greater efficiency, reduce costs, and minimize environmental impact. As the cloud computing landscape evolves, proactive optimization strategies will play a crucial role in driving sustainability and maximizing value for stakeholders.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making investment decisions.

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Emman Omwanda

Emmanuel Omwanda is a blockchain reporter who dives deep into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), and more. His expertise lies in cryptocurrency markets, spanning both fundamental and technical analysis.

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