The Bureau of Labor Statistics Producer Price Index (PPI) reported a 3.9% month-over-month decline in the cost of host computers and servers. Cloud services saw prices increase by 2.3%. This happened after the third quarter of 2022. The overall PPI declined 0.3% in May as prices for goods dropped 1.6% and service fees increased 0.2%. The Bureau tracks cloud computing within the data processing, hosting, and related services category.
Hitting the reset button
My latest book explains that cloud computing should never be the go-to consumption model for all applications and data sets. Many companies are hitting the reset button for some systems already on cloud platforms, repatriating them back to traditional data centers for more attractive costs.
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