Host Pricing: What In The End Am I Actually Paying For?

Answer To Everything.png
Holiday Photos.png
Growing Up.png
Hair Loss.png
The Backup.png

Cloud Pricing

I’ve been blogging about this concept now for a while. What is the cost of a cloud solution and what in the end am I actually paying for? I know I am not the only person considering this as I’ve seen any number of articles and blogs posted on this topic. In reviewing those posts, I’ve realized that in the end, there are a number of overall pricing models that most people consider being valid.

Personally I like the following:

Utility: sometimes called pay by the drink or pay as you use. There are two models of this payment style the first being cash (which is paid after X time period of use) and credit (which is billed up front).

Subscription: Sometimes also called committed or managed VM’s this model supports you have machines that in the end are dedicated for you. You can use more, but you pay for the minimum every month.

Managed: Beyond subscription, you also pay the provider for IT services, operations and you don’t in the end have an onsite IT staff.

Within each of these pricing models, you can go even further into the various details such as buying by the CPU or buying storage over time. Storage is normally sold on a utility for 30 days, but then after that there is a move towards subscription pricing.

All these models are intriguing in the end. Utility can sometimes add a component called Spot Market where pricing is normally lower than list due to the fact that CPU’s available on the spot market tend towards not being used or leveraged therefore the provider is willing to rent them at a reduced rate until a higher paying customer needs them again.

So does it interest me? For years, I have talked to customer’s about moving from where they are to somewhere new. In every case as I have talked to my customer I have asked them three questions.

1. What applications are critical for your business?

2. What is your mix of COTS (commercial) vs. FOSS (Free and open source)?

3. Do you have a mandate for this migration?

Now back in the day I first started asking these questions it was more focused on cross-platform moves, but the questions still apply. I find that asking number 3 first is the most effective because from there, you can determine what the ultimate goal of this project will be. Cost reduction as a mandate produces a different migration than upgrading the overall organization does.

This is why I think about pricing all the time. I suspect I should start building a calculator that would help my customers as they embark on this journey. Balance security of the solution against the overall need to reduce cost. Throw in a little cloud and in the end sprinkle some magic migration dust and hopefully it will all end up in the cloud. Then we can spend some serious time figuring out the various pricing models. Or maybe in the end my calculator already did that.

By Scott Andersen

Juan Pablo Perez Etchegoyen

7 Security and Compliance Considerations for Cloud-Based Business Applications  

Security and Compliance Considerations There’s no doubt on-premises deployments of mission-critical business applications provide more control over data as it resides within the four walls of an organization’s network infrastructure. However, businesses can no longer ...
Kamal Maggon

Mining Business Value – Accelerating a US Company’s Cloud Transformation

Mining Business Value Traditional industries like mining have been slow to adapt to changing IP technology.  Of course, coal and other mining types have adopted new technologies starting with mechanical drills powered by pistons, then ...
Kash Shaikh

A Clairvoyant Look Back on 2021

In a lookback from the future, here is what happened in 2021 as reported on January 1, 2022. 2021 was the year that our world worked its way out of the 2020 pandemic and back ...
Darach Beirne

Take Control of Telecom by Being Your Own Carrier

Being Your Own Carrier Departments and organizations of all sizes and across all industries are transitioning away from traditional hardware IT systems and embracing SaaS-based cloud offerings. The global pandemic has spurred greater cloud adoption, ...
File Photo Of Facebook Ceo

533 Million Facebook Users Had Their Data Stolen and Leaked Online

Facebook Data Stolen and Leaked Online On Saturday, April 3rd, a user from a hacking forum published the personal data from more than 500 million Facebook users. The hacked and published data were available at ...

TECH ELEARNING

The CloudTweaks technology lists will include updated resources to leading services from around the globe. Examples include leading IT Monitoring Services, Bootcamps, VPNs, CDNs, Reseller Programs and much more...

  • Plural Site

    Pluralsite

    Pluralsight provides online courses on popular programming languages and developer tools. Other courses cover fields such as IT security best practices, server infrastructure, and virtualization.

  • Isc2

    ISC2

    (ISC)² provides IT training, certifications, and exams that run online, on your premises, or in classrooms. Self-study resources are available. You can also train groups of 10 or more of your employees. If you want a job in cybersecurity, this is the route to take.

  • App Academy

    App Academy

    Immersive software engineering programs. No experience required. Pay $0 until you're hired. Join an online info session to learn more

  • Cybrary

    Cybrary

    CYBRARY Open source Cyber Security learning. Free for everyone, forever. The world's largest cyber security community. Cybrary provides free IT training and paid IT certificates. Courses for beginners, intermediates, and advanced users are available.