It's Not All About The Cloud, Says CEO Of Cloud Hosting Provider Hostway

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While the trend is to outsource IT, and there's plenty of pressure from business managers to shift costs from capex to opex, and get away from buying hardware, the cloud in many cases does not offer the most savings.

"I cannot describe to you how many companies come to us and say, 'We are overspending with AWS, overspending with Azure,'" Sayegh said.

Hybrid cloud is a construct that "solves a lot of these problems, eliminates a lot of these risks," Sayegh said.

Hybrid hosting essentially is the third-generation of the cloud, he said, after private and public waves, and the third-generation of most technologies often proves the optimal one that sticks for the longest period.

"The biggest jump in improvement is that third generation," Sayegh said. "As service providers, we have to make it easy for you to do hybrid."

Kevin Walsh, owner of San Diego, Calif.-based MSP HostForYou, told CRN that he sees much the same dynamic Sayegh discussed in his own business.

Customers often are irritated by costs they weren't expecting when leveraging large cloud providers—finding the front-end pricing not matching their actual bills.

"Especially with AWS when you get data transfer costs," Walsh told CRN after hearing Sayegh's presentation. "It seems cheap, but once they start seeing the data transfers, it's sometimes not as cost effective."

A lot of his customers also worry about internet latency and prefer the networking speed of on-premises infrastructure.

"Most customers are still concerned about their data moving to the cloud," Walsh added. "So if they have more of a private system, they would prefer to have their data there. That's what I'm learning from my customers."

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