Alibaba Cloud hikes prices by up to 34%, blames hardware costs and AI demand

Alibaba Cloud today informed users it will increase prices for many services by up to 34 percent. “Due to the surge in global AI demand and rising supply chain costs, the procurement costs of core hardware in the industry have increased significantly,” states a price adjustment notice posted on Wednesday. “After careful …

[IGotOut]

Hot to love corporate speak

"After careful evaluation, we have decided to adjust the prices of services,”

A careful evaluation of how much we think we can get away with, before to many people leave and we don't make an increase on profits.

[Guy de Loimbard]

Re: Hot to love corporate speak

I'm sure a lot of enterprises will benefit from cloud services, however, I've seen, at least historically, many an IT Department hoodwinked into thinking cloud is the silver bullet for everything and failing at the point of the first new billing cycle, when all the sales discounts are removed.

This is another example of lack of ownership puts you in danger of being price gouged at the whim of the provider.

It has never got anything to do with providing you with better services, just a profit margin increase from the provider.

[Blue Screen of Bleurgh]

Quote - “Due to the surge in global AI demand and rising supply chain costs, the procurement costs of core hardware in the industry have increased significantly,"

Expect every corporate business - IT related or not - to wheel out the same trope just to squeeze a bit more cash out of already cash-strapped punters

"Sorry, sir, your double quarter pounder and fries has gone up by 34% due to global AI demand and stuff!"

[spireite]

Waiting for the stampede

As prices of eveything are being spiked by the AI 'revolution', there is a point at which business will say 'Nope!' when the bottom line gets screwed.badly. At the moment, there is a sense of 'we have to do it, to stay ahead of our competitors'. That works to a point, but the beancounters still rule ultimately.

I've been on training days where the tokens prepaid for have run out far quicker than anyone expected, long before training completes. When the beancounters see that in a day-to-day scenario they will get very nervous.