A recent Gartner report projects that global spending on public cloud services will grow 20.4% in 2022 to reach $494.7 billion. The end-user spending is expected to reach nearly $600 billion next year.
The report noted that Cloud is the powerhouse that drives today’s digital organisations. It is more economical for companies to move to a cloud system hosted by external providers than to invest in creating their servers, hardware and security network infrastructure.
But as the cloud computing market grows 5X by 2030, is the cloud industry equipped to cater to the growing demand?
The monopoly of cloud providers
A US-based Synergy Research Group report says that the cloud industry continues to be dominated by three players — AWS, Google and Microsoft, harvesting 65% of global spending on cloud computing in Q1 2022.
This high market concentration by three players is problematic as these monopolistic companies can arbitrarily command higher prices, which works against end-users. Their clout also has the strength to cull small, innovative cloud providers exploring sustainable solutions.
Apart from unfair pricing, concerns like data security, privacy and lack of transparency exist as the centralised platforms have unauthorised access to large amounts of sensitive data at risk of being exploited. Additionally, lack of competition can stifle innovation and productivity and increase inequality. Finally, reliance on centralised hyper-scale providers increases the systematic risk of mass outages.
Related: 2021: The year the centralised cloud hit a breaking point
How do we meet the rising demand?
The hyper-scalers are struggling to keep up with the growing computing demand and aggressively invest in expanding their infrastructure, relying on more data centres to fill the gap. This expansion, however, comes at a high environmental cost.
The energy consumption of data centres is set to account for 3.2% of the total worldwide carbon emissions by 2025, similar to the aviation industry’s emissions.
The situation is alarming, considering the data usage is bound to increase with billions of internet-connected devices worldwide. Solely relying on the centralised hyper-scalers cannot meet the demand for computing for businesses and emerging technologies.
To avoid this compute crisis, we need to harness the computational capacity. According to estimates, 30% of server capacities sit idle in many data centres. Enterprise organisations spend more than a million dollars a year on cloud computing, but a third of that spending goes to waste.
How does Cudos solve these problems?
Cudo Compute addresses the issue of this colossal waste of computing and hardware capabilities at data centres by harnessing their spare capacity and providing them with revenue-generating opportunities.
Thousands of nodes spread worldwide will contribute to our compute platform to offer near-limitless computational capacity, which can then be accessible to the users at a fraction of the cost of centralised cloud platforms. These network of nodes could provide scalable peer-to-peer sharing of computing with low latency.
Sustainability is at our core without sacrificing the computing required to support the innovation of emerging technologies like artificial intelligence, machine learning and metaverses.
Most importantly, we create a shared economy, unlike centralised players. Suppliers would earn passive income by contributing their spare compute to the network.
Be part of our solution
Our imminent mainnet launch in June will enhance the distribution of computing power of Cudo Compute.
Positive as our steps are, we need your support to mitigate the environmental challenges and scale compute sustainably. So if you are a data centre, service provider or enterprise system, join our network today and monetise your spare hardware.
Cudos is powering the metaverse bringing together DeFi, NFTs, and gaming experiences to realise the vision of a decentralised Web3, enabling all users to benefit from the growth of the network. We’re an interoperable, open platform launchpad that will provide the infrastructure required to meet the 1000x higher computing needs for the creation of fully immersive, gamified digital realities. Cudos is a Layer 1 blockchain and Layer 2 community-governed compute network designed to ensure decentralised, permissionless access to high-performance computing at scale. Our native utility token CUDOS is the lifeblood of our network and offers an attractive annual yield and liquidity for stakers and holders.
Originally published at https://www.cudos.org.