Enterprise AI Adoption Stalls As Inferencing Costs Confound Cloud Customers
According to market analyst firm Canalys, enterprise adoption of AI is slowing due to unpredictable and often high costs associated with model inferencing in the cloud. Despite strong growth in cloud infrastructure spending, businesses are increasingly scrutinizing cost-efficiency, with some opting for alternatives to public cloud providers as they grapple with volatile usage-based pricing models. The Register reports: [Canalys] published stats that show businesses spent $90.9 billion globally on infrastructure and platform-as-a-service with the likes of Microsoft, AWS and Google in calendar Q1, up 21 percent year-on-year, as the march of cloud adoption continues. Canalys says that growth came from enterprise users migrating more workloads to the cloud and exploring the use of generative AI, which relies heavily on cloud infrastructure.
Yet even as organizations move beyond development and trials to deployment of AI models, a lack of clarity over the ongoing recurring costs of inferencing services is becoming a concern. "Unlike training, which is a one-time investment, inference represents a recurring operational cost, making it a critical constraint on the path to AI commercialization," said Canalys senior director Rachel Brindley. "As AI transitions from research to large-scale deployment, enterprises are increasingly focused on the cost-efficiency of inference, comparing models, cloud platforms, and hardware architectures such as GPUs versus custom accelerators," she added.
Canalys researcher Yi Zhang said many AI services follow usage-based pricing models that charge on a per token or API call basis. This makes cost forecasting hard as the use of the services scale up. "When inference costs are volatile or excessively high, enterprises are forced to restrict usage, reduce model complexity, or limit deployment to high-value scenarios," Zhang said. "As a result, the broader potential of AI remains underutilized." [...] According to Canalys, cloud providers are aiming to improve inferencing efficiency via a modernized infrastructure built for AI, and reduce the cost of AI services. The report notes that AWS, Azure, and Google Cloud "continue to dominate the IaaS and PaaS market, accounting for 65 percent of customer spending worldwide."
"However, Microsoft and Google are slowly gaining ground on AWS, as its growth rate has slowed to 'only' 17 percent, down from 19 percent in the final quarter of 2024, while the two rivals have maintained growth rates of more than 30 percent."
Read more of this story at Slashdot.
Father's Day treats contain 'reckless' sugar levels, shoppers warned
An analysis found some paternal-themed bars and treats include almost a week's worth of sugar in a single item.
Stilett-no! Fashionistas warned high heels above three-inches could be their downfall
High heels are de rigueur for many women wanting to look their best - thanks no doubt to the influence of the world of fashion, where teetering stilettos are the norm.
Touching moment Sam Thompson breaks down in tears and is comforted by best friend Pete Wicks during agonising 260-mile Soccer Aid challenge - as he reveals he is out of charity match
The 32-year-old raised more than £1.5million for Unicef as he battled through an agonising calf injury to deliver the Soccer Aid match ball to Old Trafford ready for the match this Sunday.
Cannabis changed me, claims 'sword killer who hacked boy aged 14 to death after hallucinating that his cat was causing "Armageddon"', court hears
Marcus Monzo, 37, admitted that he had been using cannabis 'extensively' which had changed his personality and caused a mental health decline.
'You disgusting n*****,' screamed the SAS officer as he tried to break me in a mock interrogation... but I'd heard it all before on the council estate where I grew up: MELVYN DOWNES tells brutal truth about being Britain's first black SAS soldier
The wooden cabin in the remote Welsh mountains was packed with hulking blokes sitting silently on bunks with our kit taking up whatever space was left.
How Ballymena boiled over: After horrifying riots sparked by two Romanians being accused of raping teen, RICHARD KAY meets the victims - and locals furious at 'endless stream of migrants' they had no say over
But as dusk falls, the mood is transformed into something rather more sinister. Gangs of masked youths stalk the streets, barricades are set ablaze and the acrid smell of burning tyres fills the air.
ANDREW PIERCE: Is Angela Rayner's hard-Left boyfriend plotting to put her in No 10 as revenge for his sacking by Starmer's ruthless right-hand man?
Drinks were flowing as the Deputy Prime Minister held court, acting as the DJ playing loud 'house music' while her guests danced the night away.
Eamonn Holmes slams 'horrible' former TV co-stars as he brands them as 'false' in scathing rant
Eamonn Holmes did not hold back his thoughts on his former colleagues in the TV industry as he branded them 'false'.
Has the curse of Meghan struck again? The smart set's latest whispers about her once closest confidante, revealed by RICHARD EDEN
Has Meghan's pal been jinxed by the association - at least where her fashion business is concerned?
There Aren't Enough Cables To Meet Growing Electricity Demand
High-voltage electricity cables have become a major constraint throttling the clean energy transition, with manufacturing facilities booked out for years as demand far exceeds supply capacity. The energy transition, trade barriers, and overdue grid upgrades have turbocharged demand for these highly sophisticated cables that connect wind farms, solar installations, and cross-border power networks.
The International Energy Agency estimates that 80 million kilometers of grid infrastructure must be built between now and 2040 to meet clean energy targets -- equivalent to rebuilding the entire existing global grid that took a century to construct, but compressed into just 15 years. Each high-voltage cable requires custom engineering and months-long production in specialized 200-meter towers, with manufacturers reporting that 80-90% of major projects now use high-voltage direct current technology versus traditional alternating current systems.
Read more of this story at Slashdot.
Reeves faces welfare revolt after Labour rebels rejected an 'olive branch' designed to head off a Commons mutiny over benefit cuts
The Chancellor is facing a ferocious backlash from her own MPs over plans to trim £5 billion from the benefits bill.
How glum Louis Tomlinson's 'hard stares' at Sam Thompson displayed the depths of their 'playground mentality' just moments before TV star revealed he was out of Soccer Aid match
Sam, 32, has insisted there are 'no hard feelings' after his ex-girlfriend Zara McDermott moved on pretty quickly with singer Louis, 33.
How I watched the CCTV in horror from my bedroom as thieves TUNNELLED into my store and stole 55 handbags worth £260,000 in just three minutes
When villagers saw people popping in and out of a house in the centre of the pretty Cheshire village of Prestbury last week, they assumed they were all there to undertake renovation work.
The key to being happier, smarter and ageing better, by leading neuroscientist DR JOSEPH JEBELLI. An extraordinary scientfic breakthrough shows what part of modern life is destroying our brains - now his new book has the cure
You're sitting at your desk, trying to look busy, and your work isn't going well. OK, it's time to double down and try a bit harder... but for some reason your brain fails to ignite.
ANDREW NEIL: Israel holds the cards. Trump has been squared. The mullahs in Tehran must now fear for their existence
The United States did not participate in Israel's initial attacks on Iran but it certainly knew they were coming. Donald Trump admitted as much to the US media yesterday morning.
Man charged over 'threat to behead' protester who set Koran alight outside Turkish consulate
Muhammad Naasir Attaari, 49, was charged with threatening to kill Hamit Coskun after he burned the Muslim holy book outside the Turkish consulate in London on February 13.
Retired builder, 60, drowns in hotel pool while playing with grandchildren just hours before son's dream Cyprus wedding
John Fazackerley, 60, had flown to Paphos, Cyprus to watch his son Sean marry fiancée Vicky in a long-planned ceremony in May.
Rape victim took her own life after her family inadvertently took her on a walk past her attacker's home
Ryan Callaghan, 33, horrifically assaulted the vulnerable women and lived on the coastal path the group had coincidentally decided to walk.
'He's turning his back on Jeff': New twist in toxic Brazier sons feud revealed by KATIE HIND as insiders tell how Bobby has ALSO fallen out with his parenting guru dad - and become a Hare Krishna
Imagine the surprise, then, for any fan of his who happens to walk past Soho's Hare Krishna HQ. Because there, they will see the actor immersing himself in spiritual rituals and chanting mantras.