OnDemand WTP Pricing Research

Cloud Pricing Comparison 2018 | ParkMyCloud

Compiling a cloud pricing comparison in 2018 is not easy. The three major cloud providers reduce their prices on a regular basis, and they also each offer unique pricing models and differing discount options, making it hard to find an “apples-for-apples” cloud pricing comparison.

In addition to fluid prices, pricing models and discount options, the three major cloud providers are constantly releasing new availability zones (each with their own price ranges), new products and “New Generation” upgrades to existing products which offer improved performance and their own prices. Add the growth of containerization and FaaS services, and it all gets very confusing.

Consequently, for the purposes of this cloud pricing comparison, we are going to focus on just the comparative costs of deploying virtual machines (or “instances”) on AWS, Azure and Google. Instance deployment on IaaS services is still the most popular form of cloud computing, so we believe this is the area of a cloud pricing comparison that will most interest readers.

AWS is Perceived to be the Cheapest Option
AWS is often perceived to be the cheapest option, but that is not always the case. Although AWS remains at the head of the cloud computing market in terms of dollar turnover, Microsoft Azure and Google Cloud Platform (GCP) have matched the market-leader´s price reductions like-for-like in recent years. Indeed, Google has initiated many rounds of price reductions by being the first to cut its prices.

The reason why AWS is perceived to be the cheapest option is because of its alleged “virtuous cycle” – a concept in which the more business a cloud provider attracts, the more servers it can afford to add. The more servers the provider has, the better it can take advantage of economies of scale and offer lower prices. The lower the prices, the more business the provider attracts – and the cycle goes on.

Because AWS was first-to-market, many believe its “virtuous cycle” gives it a head-start in any cloud pricing comparison. However, as the table below demonstrates, there are remarkably few occasions when AWS can genuinely claim to be the market leader in price (the prices quoted in the table are per instance per hour, based on pay-as-you-go “On Demand” pricing).

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Cloud Pricing Comparison 2018.