Enterprises are facing rising cloud storage costs due to the increased use of AI, making it challenging to manage data efficiently. Datadog has introduced Storage Management to address this issue, now available for Amazon S3 and in preview for Google Cloud Storage and Azure Blob Storage.
The growing adoption of AI technology is causing a surge in cloud storage expenses for businesses as they grapple with the complexities of tracking and managing their data effectively. Datadog has recently launched Storage Management, a tool designed to tackle this problem. This feature is now accessible for Amazon S3 and is currently in the testing phase for Google Cloud Storage and Azure Blob Storage.
This innovative tool from Datadog enhances the existing cloud cost management capabilities by providing deeper insights into object storage, which is where the majority of AI and analytics data is stored. With the platform consolidating cost, usage, and metadata into a single dashboard, teams can gain a better understanding of how their storage behaviors impact their expenditures. This level of visibility enables them to identify redundant, temporary, or rarely accessed data and implement appropriate lifecycle or retention policies.
Moreover, the system has the capability to monitor activity across billions of objects, detecting any unusual growth or access patterns. This functionality is particularly beneficial for large enterprises operating in multi-cloud environments, where it is easy for spending irregularities to go unnoticed across various accounts and regions. By identifying these trends early on, teams can proactively address potential budgetary issues.
However, merely having visibility into storage habits is not sufficient. To translate these insights into cost savings, organizations need to establish consistent data governance practices and foster collaboration across departments. It is essential for finance and IT teams to work in unison to align policies, define ownership, and integrate cost awareness into their day-to-day workflows. By integrating these insights with existing tools such as AWS Cost Explorer, Azure AI Foundry, or Google Vertex AI, organizations can maintain a cohesive view of performance and cost.
Datadog highlights that storage and processing have now become the third-largest expense for companies developing AI products, surpassing even model training and inference costs. This serves as a wakeup call for CIOs, CFOs, and operations leaders striving to strike a balance between innovation and financial prudence. By treating storage management as an ongoing practice rather than a one-time endeavor, organizations can effectively control costs without impeding progress. The ultimate objective is not merely to reduce spending but to ensure that data storage aligns with both efficiency and governance requirements.
Enterprises that leverage automation, foster shared accountability, and possess clear visibility into their data will be better equipped to navigate the rapid expansion accompanying AI adoption.