Is the Cloud Broken? Rethinking Simplicity, Value, and Purpose in Cloud Computing

As someone deeply embedded in the cloud-native space, I’ve witnessed how the rapid evolution of cloud computing has unlocked remarkable opportunities—but also introduced significant challenges. Recently, I revisited some research we conducted back in 2022, which revealed a critical trend: despite the hundreds of services offered by the major cloud providers (the Big Three hyperscalers), most businesses use fewer than 10 services from their cloud provider.

Reflecting on these findings made it clear that modern ecosystems are growing increasingly complex while failing to meet user needs. This disconnect, where businesses are paying for a vast catalog of services they rarely use, raises the question: Is there a better way?

Our Cost of Cloud 2024 Report underscores these issues further. It highlights systemic issues with hyperscaler pricing, where businesses are paying for features they rarely or never use. This pricing complexity, combined with hidden fees, has led to mounting frustration for organizations aiming to control IT spending.

At Civo, we firmly believe there is a better approach.. But let me make one thing clear: simplifying the cloud doesn’t mean compromising on quality, capability, or security. Quite the opposite. True simplification means focusing on what businesses need most while delivering them in the most efficient, transparent, and user-friendly way possible.

The Hidden Costs of Complexity

The Big Three hyperscalers—AWS, Google Cloud, and Microsoft Azure—have built vast ecosystems offering hundreds of services. While variety can be valuable, our 2022 research revealed the opposite:

• On average businessesuse less than 10 servicesfrom their cloud provider.
• 34% of businesses use just five or fewer services
• Only20% Only of respondents reported using more than 15 services regularly.

The result? Many businesses are navigating—and paying for—unnecessary complexity, leading to:

• Steep learning curves: Teams often spend significant time trying to understand and configure services they might never fully utilize.
• Operational risks: Overly complex systems increase the likelihood of misconfigurations, which can lead to outages or vulnerabilities.
• Unexpected costs: Hidden fees, such as egress charges, can balloon budgets in ways that are hard to predict.

Beyond these technical and financial hurdles, businesses often find themselves tied into ecosystems that are increasingly difficult to escape. The proprietary nature of these platforms, coupled with their expansive service offerings, often locks customers into long-term dependencies. This dynamic discourages innovation, as teams are forced to work within the limitations of their provider’s ecosystem rather than exploring more effective or efficient alternatives.

Additionally, promotional free credits—commonly used to attract new customers—frequently mask the true cost of these services. Once depleted, businesses are left with inflated bills and limited flexibility to migrate, further entrenching vendor lock-in. This complexity distracts teams from their core goal: building great applications and delivering value.

The Broken Promises of Big Tech

This complexity takes us back to the early promises of cloud computing. At the 2012 AWS re:Invent, the then-CEO Andy Jassy, positioned the hyperscaler model as a way for customers to benefit from the economies of scale, making cloud infrastructure more cost-effective than on-premises IT. Yet, over time, these same hyperscalers have transformed into high-margin businesses generating billions in profits while customers struggle with opaque pricing.

"AWS is able to take its very large scale and pass on those savings to customers in the form of lower prices." - Andy Jassy, current CEO of Amazon

As our research shows, this shift towards profit-driven complexity introduces:

• Operational overhead: Specialized expertise is needed just to manage basic services.
• Increased risk: Complex configurations heighten the risk of outages and security issues.
• Vendor lock-In: Proprietary tools and services create costly dependencies.

The outcome? A cloud model that often serves shareholder value rather than user needs.

Simplicity Without Sacrifice

Simplicity doesn’t mean doing less—it means doing what matters exceptionally well. At Civo, we’re redefining simplicity in cloud infrastructure by focusing on what businesses need most:

• Core cloud-native services: Our platform is purpose-built for cloud-native workloads. We focus on core services like Kubernetes, compute instances, and object storage—streamlined, optimized, and designed to scale with your needs.
• Reliability: By reducing complexity, we minimize risks and build infrastructure that is robust and reliable, ensuring your applications run smoothly.
• Security: Simplification doesn’t mean cutting corners. Our platform integrates industry-leading security measures to protect your workloads, including data encryption, role-based access control, and compliance with the highest standards.
• Cost transparency: Predictable and fair pricing is central to what we do. No hidden fees, no surprises—just straightforward pricing you can trust.

A Call for Industry Change

The challenges with hyperscalers aren’t just about complexity or cost—they’re systemic. As Cory Doctorow’s concept of “enshittification” explains, platforms often shift from serving users, to serving business customers, prioritizing profit over experience. . However, the cloud doesn’t have to follow this path. Businesses are demanding change, and the next generation of leaders—Gen Z—is driving a shift toward purpose-driven, sustainable practices. The industry must respond with:

• Transparent pricing models that eliminate surprise fees.
• Sustainability initiatives,like heat reuse, to address environmental concerns.
• Open standards that promote interoperability and reduce vendor lock-in.

A Better Future for the Cloud

The cloud should be a platform for innovation, not a source of frustration. By returning to its original promise—scalable, cost-effective, and easy-to-use infrastructure —we can rebuild trust and drive meaningful progress.

At Civo, we’re committed to leading this change. We champion simplicity without sacrifice, transparency without compromise, and innovation without excess. We believe in a cloud that works for businesses, not against them. By implementing actionable strategies, such as those outlined in maximizing cloud savings article, businesses can take practical steps toward a simpler, more cost-efficient cloud future. These approaches ensure that innovation is paired with clarity, making it easier for businesses to focus on growth rather than grappling with unnecessary complexity.

But this conversation is bigger than us. It’s about the industry as a whole . Complexity isn’t innovation. Simplicity, done right, can be the ultimate driver of progress.

Let’s make sure the cloud lives up to its promise—for everyone.