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Cloud Computing: What’s the Real Cost of the Cloud?
451 Research recently set off on the task to try to determine the real costs involved in operating an application in the cloud. As part of this process, 451 created a price index that measures all costs involved in operating a web server application. Price data was collected from cloud providers which included AWS, Google, Microsoft Azure, Swisscom, Verizon, UpCloud, Gandi, Lunacloud, Internap, Peak10 and Windstream.
Owen Rogers, Senior Analyst at 451 Research, said that “the current average cost of running a multi-service cloud application is $2.56 per hour, or around $1,850 per month, which includes bandwidth, storage, databases, compute, support and load balancing in a non-geographical resilient configuration. At this hourly price for an application that potentially could deliver in excess of 100,000 page views per month, it’s easy to see how cloud is a compelling proposition for enterprises. Our research indicates that savings of up to 49 percent can be achieved by committing to a minimum usage level, so enterprises should consider alternatives to on-demand if they wish to secure cost savings.”
In addition to the 451 Cloud Price Index (CPI), 451 also developed a Virtualization Price Index (VPI) which looks only at the average hourly price for running a three-tier web application. Currently the VPI is at $.73 per hour.
