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Cloud Computing Pricing: How To Compare

Cloud Computing Pricing: How To Compare – This is part three of a three-part series on working with infrastructure services from Executive Editor Joe Maitland.

Although cloud control and security issues have been suddenly resolved, cloud pricing remains a challenge. While cloud service providers like to tout the simplicity of their services, IT managers have discovered that the cost of cloud services is anything but simple.

Cloud Computing Pricing: How To Compare

Cloud Computing Pricing: How To Compare

Pricing structure is based on many factors, from storage space to clock cycles used to allocate monthly traffic, and that’s not all. Some service providers have additional fees hidden in the service level agreement (SLA).

Hedonic Pricing Of Cloud Computing Services

To determine the total price of the cloud service, the user needs to understand the individual components of the service that the provider pays for and how those fees are calculated. Does the service provider, for example, charge based on traffic, storage space, server CPU time, or a combination of these factors along with other elements?

Another important factor in determining the actual cost relates to the type of service required. For some, that service may be little more than a hosted server, dedicated to running applications in the cloud. For others, the service may be cloud-based backup or business continuity or on-site storage.

Perhaps the easiest way to break down the price is to focus on the main services offered. Most cloud providers divide their services into three main areas: cloud servers, cloud storage, and cloud websites and applications. Each is regulated by its own price formula.

Cloud servers come in two forms: virtual and physical. In other words, you can buy time on a virtual server (where the physical hardware can be shared with others) or time on a dedicated server (where you are the only “tenant” on that server). Table 1 shows the price distribution.

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Price comparison is only part of the overall picture. Each vendor listed above includes additional services and features for an additional fee. In addition, prices may vary depending on the length of the commitment, overall bandwidth requirements, or the total amount of storage required, and in most cases, prices and packages are negotiable with the vendor’s sales staff.

Not all cloud providers are created equal, and this becomes apparent when you look at the differences between providers and how they address customer needs. For comparison purposes, we have selected three popular cloud infrastructure providers:

When you look at the simpler concept of cloud-based storage services, the difference in pricing structure and how providers create packages for dent (see Table 2). Again, comparing prices is only part of the picture. And as with other cloud services, pricing is affected by the length of the commitment, total bandwidth requirements, or total amount of storage required. And as with other cloud services, there is a lot of room for negotiation.

Cloud Computing Pricing: How To Compare

Ideally, pricing for cloud-based services should require more than feature selection and defining required storage and computing requirements. In fact, most IT managers will find that ideals do not apply here and will have to carefully consider “hidden extras” as well as standard fees to determine the value of the service.

Price Trends For Cloud Computing Services

The bigger challenge is to translate the “tech talk” of cloud services into something that the people holding the wallet can understand, and bring those people into the loop to negotiate prices and contract terms, as well as SLAs.

The point is to get all estimates in writing in clear, concise language that explains that all charges will exceed the contract period; Written confirmation is the only way to see an apples-to-apples comparison of price patterns and determine the actual budget amount.

A recent study from the University of New South Wales in Australia, in collaboration with researchers from NICTA (National ICT Australia) and the Smart Services Cooperative Research Centre, spent seven months stress testing Amazon’s EC2, Google’s App Engine and Microsoft Azure cloud computing services.

The analysis simulated 2,000 simultaneous users connected to the service from each of the three providers, in which the researchers measured response time and other performance indicators. Results are less than stellar, response times vary by service time of day. In addition, the study revealed a lack of monitoring tools that would allow organizations to verify whether services meet their SLA.

Cloud Computing Cost & Pricing Comparison In 2023

Clearly, cloud providers have it cut out for them in terms of simplifying pricing models, strengthening security, and providing SLAs that guarantee better reliability. The market is evolving rapidly and the dominant players today may be history in two years. One catastrophic data privacy breach can wipe out a brand and potentially slow down the market for a decade.

Hopefully cloud service providers are listening and their customers will be willing to continue pushing for what they want.

Joe Maitland is the managing editor of the Data Center and Virtualization Media Group. This article has additional reporting by Christina Torode, senior reporter for CIO Media Group and .

Cloud Computing Pricing: How To Compare

Editor: Infrastructure as a Service This is the fourth part of the e-book on cloud computing that also includes chapters on CIO strategy for the cloud, cloud development, and software as a service. Content and product recommendations are editorial. Independence. We may get paid when you click on our partners’ links. Learn more.

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It is expected that the use of public cloud computing will make the process of use, maintenance Easier payment of IT infrastructure. But the pricing plans offered by public cloud vendors are anything but straightforward.

Cloud prices vary based on various factors. Those factors include the features of the server you’re using, the location of the cloud data center you’re using, the operating system and software you’re using, whether you’re paying by the hour or month (or some other schedule…), whether you’re on a long-term contract, whether you’re eligible for free tier services, the level of support you need, the amount of data you want to store and transfer, and whether you have any eligibility. discount.

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Top sellers offer tens of hundreds of different services. Each of these services has its own price chart with many options. In some cases, cloud services can be configured in thousands of ways, each resulting in a different price.

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And what’s worse, all the top sellers drop their prices regularly. Only when you find which seller offers the best offer, one (or all) of them will lower the price and you will have to do all the calculations again.

Making sense of the complexity of all this cloud spending is difficult, to say the least. But some general can do.

This analysis focuses on three public Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) vendors: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). A good first place to start comparing cloud prices is with the respective vendor’s website. Here’s a quick overview of each seller’s pricing philosophy and key discount programs:

Cloud Computing Pricing: How To Compare

AWS also offers a free tier, with very few services available for free, usually for a limited period of time.

Breaking Down The Cost Of Cloud Computing In 2023

Like Amazon, Microsoft publishes prices, but also offers a variety of discounts for different types of customers.

Like AWS, Azure also offers a free tier, with very few services available for free, usually for a set period of time.

GCP also offers a free tier, which includes some services that are free for a year and some that are always free.

Microsoft’s undisclosed discounts and hybrid licensing variants make it difficult to get a completely accurate picture of what companies will pay for cloud computing services. However, cloud benchmarking vendor Cloud Spectator has published an overview of published prices for IaaS services.

Cloud Pricing Comparison: Aws Vs. Microsoft Azure Vs. Google Vs. Ibm

This report compares a number of different cloud vendors, including the top three. It groups similar cases together and compares the average price for different services, including discounts suitable for long-term commitments.

The report is from September 2017, so check prices as they change. However, this report provides a good overview of the market that allows for some generalizations about this particular period.

The chart below shows how AWS, Azure, and GCP stack up for the different sizes and commits for Linux and Windows. And to make the table a little easier to read, the lowest value in each category is green, the second lowest is yellow, and the most expensive is pink.

Cloud Computing Pricing: How To Compare

First, a warning. The report cautions that the cases used for comparison are not strictly identical. If you want a certain level of performance, you need to make sure that the cases you are comparing all fall within the acceptable range for your application.

How Much Does Cloud Computing Cost? Pricing And Vendor Comparison

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