Crypto

Inflation: Will Data Centers Raise Prices Too, Victims of Cloud Inflation?

The dizzying increase in electricity prices has unexpected consequences in some areas, which, however, were introduced to save money. As Le Figaro explains, now data centers have become victims of the “cloud”. The cloud is really meant to allow companies to have services proportional to their usage (as opposed to the duration of licenses). The challenge for companies is also how to eventually move into this sector, whether for data storage or running software services on remote servers (such as invoicing or accounting management). With real savings at the end.

The problem is that the explosion in electricity prices is shuffling the cards, our colleagues say. In August, executives at French server hosting, Internet access provider and telecom operator OVHcloud became wary, explaining to their customers why their prices would rise by 10%. The renegotiation of their contracts is in question, some of which expire at the end of the year. So much so that many hosts have announced increases in recent weeks, such as Equinix or Telehouse, which have increased their prices by 30% and some services have doubled. Back at the start of the year, Interxion, another data center hosting giant, announced a 14% increase.

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Then, company president Fabrice Kokio explained that electricity makes up “15 to 20% of the customer’s bill” and the rest consists of “75% of the physical housing established by the contract, as well as additional services,” he said. referring to possible new increases from next January. An infrastructure consultant interviewed by Le Figaro even mentions a 100 percent increase in “specific services” for some providers. That’s why experts talk about the “cloud” in this area. Even industry giants like Microsoft or Amazon have announced increases. So far, only Google hasn’t switched to electricity on its pricing, believing that unlike other services, “there was no impact.” Experts are now calling for a more “prudent” use of the cloud, perhaps also to reduce bills.

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