The Challenges Of Cloud Computing And How Blockchain Can Help

The challenges of cloud computing are easily overshadowed by the fact that the market is going through a huge boom right now. The cloud computing sector is dominated by a small number of big tech firms including Amazon Web Services (AWS), Microsoft Azure, and IBM. AWS leads the pack in market share, but all of these companies are undergoing staggering growth. AWS reported 49 percent revenue growth in the first quarter of 2018, while Microsoft said its Azure revenue shot up 93 percent.

Sounds like good news? Perhaps, but even in a booming market, the challenges of cloud computing should not be underestimated. Here, we look at how the big tech firms are struggling to keep up with demand, and how decentralization could be one of the critical enablers for cloud computing of the future.

Why Is Cloud Computing in Such Vast Growth?

One reason is the development of artificial intelligence (AI). AI algorithms rely on massive quantities of data. Until a few years ago, there just wasn’t the available computing power needed to run AI programs. Now, better hardware means that AI development is eating up computing power as quickly as it becomes available. One analysis showed that AI computing power consumption has doubled every three and a half months since 2012. Compare that to Moore’s Law, which had an 18-month doubling period.

Greedy AI robots ate all the computer pies. Image courtesy of Pixabay.

In light of AI’s voracious appetite for data and therefore computing power, the biggest challenges for cloud computing today are supply and demand. So as the demand increases, cloud computing providers must find ways to either increase their supply or manage the pricing to try and stem demand. They are doing both.

Challenges of Cloud Computing #1: Managing Supply and Demand with Existing Server Capacity

Cloud providers like AWS operate with tiered pricing. This model allows their clients to choose the type of computing power they need for particular jobs. AWS sells premium priced on-demand services that are always on for clients who need a continuous service. It also sells spot instances of cloud computing at variable prices. These work for clients who can queue jobs until there is available server capacity, so they can spend less.

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