Menu
Pick 'n' Mix - Why businesses should shop around when it comes to cloud services

Pick 'n' Mix - Why businesses should shop around when it comes to cloud services

"We believe we have identified a tremendous opportunity for providers to bring a retail-model discipline to cloud service selection and creation."

Cloud buyers can save money by shopping around for the cheapest services for each part of their Web application, suggesting the multiple cloud provider method can provide tangible business benefits in return.

In the latest quarterly update to the Cloud Price Index, analyst firm 451 Research suggests that instead of using a single cloud provider to deliver an application, buyers who mix services such as compute and storage from multiple providers can make “substantial savings.”

The analysis reveals that if cloud buyers mix and match services and make long-term commitments to their providers, they can make substantial savings, starting at 58 percent for a small application.

For a large application, the savings could be 74 percent, which, over three years, equates to a total cost saving of $US23,000 per Web application.

Designed to give enterprises and service providers insight into the cloud pricing landscape, 451 Research’s Cloud Price Index is a specification of the services required to operate a typical Web server application including compute, storage, databases, management and more.

“The CPI shows it is possible to achieve substantial savings by using multiple providers; however, we believe the complexity of dealing with various providers offsets any advantage at this time,” says Dr. Owen Rogers, Research Director, 451 Research’s Digital Economics Unit.

“Technically, there is no reason why applications can’t be architected across multiple clouds, but the potential challenges organisations face include latency between data centres, managing different GUIs and APIs, invoicing, documentation, and support functions.”

As a result, Rogers believes most users would prefer to “pay a premium” for an integrated solution from a single provider.

“Through this analysis, we believe we have identified a tremendous opportunity for providers to bring a retail-model discipline to cloud service selection and creation,” Rogers adds.

“For example, providers could offer decision engines to help enterprises choose the best-value mix of services to suit their needs, and then integrate and manage these services as a managed offering.”

To determine the lowest-price mix of services, 451 Research’s Digital Economics Unit surveyed 26 cloud providers, representing 85 percent of the US cloud market, as part of its regular quarterly pricing update.

For each service within its basket of goods, 451 Research analysts chose the cheapest cloud provider and added costs of bandwidth, using data collected in October 2015.



Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Cloud451 Research

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments