Cloud services

451 Research finds cloud price per hour is $2.56

(Source: Stockfresh)

10 November 2014

According to new research by analyst house 451 Research, the average hourly price for the typical web application is $2.56 (€2.05), with the hyperscale providers, which it refers to as ‘hyperscalers’, slightly cheaper at $2.36 (€1.89)

The analyst’s Cloud Price Index set out to examine the real-world cost of cloud computing over time, and like a consumer price index, the 451 Cloud Price Index (CPI) is made up of a basket of goods — in this case, comprising the range of services required to operate a typical web server application.

In the first edition of the Cloud Price Index (CPI), the average hourly price for a typical web application is $2.56, with the ‘hyperscalers’, such as AWS, Microsoft Azure and Google Compute Engine, coming in slightly cheaper at $2.36.

The CPI is based on quotes and estimates derived from a range of cloud providers based on a specification of a typical multi-service cloud application.

By measuring how the Index changes over time, 451 Research said that it is establishing a benchmark to compare how price cuts across the cloud industry are reflected in real-world situations more accurately than traditional methods that tend to only consider virtual machines.

The analyst also launched a simpler Virtualisation Price Index (VPI), which represents the average hourly price of a basic three-tier web application, based on quotes from a range of hosting and cloud service providers. The VPI is currently $0.73 (€0.58) across all providers, whereas the hyperscalers are slightly more expensive at $0.78 (€0.62).

“The current average cost of running a multi-service cloud application is $2.56 per hour, or around $1,850 (€1,482) per month, which includes bandwidth, storage, databases, compute, support and load balancing in a non-geographical resilient configuration,” said Dr Owen Rogers, senior analyst, digital economics unit, 451 Research.

“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% 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,” said Dr Rogers.

The CPI is based on cloud quotes from a number of providers, including AWS, Google, Microsoft Azure, Swisscom, Verizon, UpCloud, Gandi, Lunacloud, Internap, Peak10 and Windstream. The 451 said that the index will be updated whenever price-cutting activities take place, and that it is always willing to consider the addition of new providers.


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