{"id":6440,"date":"2016-07-01T07:00:38","date_gmt":"2016-07-01T15:00:38","guid":{"rendered":"http:\/\/formtek.com\/blog\/?p=6440"},"modified":"2016-05-27T07:13:07","modified_gmt":"2016-05-27T15:13:07","slug":"cloud-computing-its-more-about-the-race-to-the-top-rather-than-one-to-the-bottom","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/cloud-computing-its-more-about-the-race-to-the-top-rather-than-one-to-the-bottom\/","title":{"rendered":"Cloud Computing: It’s More About the Race to the Top, Rather Than One to the Bottom"},"content":{"rendered":"

Amazon has dropped AWS cloud service prices more than 50 times in it’s history<\/a>\u00a0as it tries to keep ahead of cloud rivals Google and Microsoft. \u00a0A January headline in the Register<\/a> read “Amazon, Azure and Google in race to the bottom … of cloud storage pricing.” \u00a0The competition in the market is fierce argue the analysts as cloud vendors try to capture market share. \u00a0But a report by 451 Research suggests that while those price cut announcements may be good at attracting attention, actually just the reverse is\u00a0happening.<\/p>\n

451 put together an index of cloud prices that they call the Cloud Price Index<\/a> (CPI). Their conclusion is that the motivator for customers is usually not the price, rather it is the value that they can achieve. \u00a0Vendors like Amazon AWS increasingly add\u00a0high-end high-value options\u00a0with healthy margins while they ruthlessly cut prices for entry-level compute resources. \u00a0In this way vendors are moving up the stack in order to grow profits.<\/p>\n

Owen Rogers<\/a>, 451 Research digital economics unit research director, said that “being cheap doesn\u2019t guarantee more revenue; being expensive doesn\u2019t guarantee less. \u00a0It appears users are willing to pay for other things, rather than always going for the cheapest… Despite all the noise about cloud becoming a commodity, our research demonstrates a very limited relationship between price and market share.\u00a0Cloud is a long way from being a commodity. In fact, the real drama is the race to the top rather than the race to the bottom.”<\/p>\n

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Amazon has dropped AWS cloud service prices more than 50 times in it’s history\u00a0as it tries to keep ahead of cloud rivals Google and Microsoft. \u00a0A January headline in the Register read “Amazon, Azure and Google in race to the…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-6440","post","type-post","status-publish","format-standard","hentry","category-cloud-computing"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/6440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=6440"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/6440\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=6440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=6440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=6440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}