Public cloud pricing may be a double edge sword | Computer Dealer News

Recently, OVH placed second overall in North American-based public cloud suppliers from the Cloud Spectator report. Cloud Spectator is a Boston-based research and consulting firm that analyzes cloud performance along with price comparing all competitors. OVH was first in the European ranking from Cloud Spectator.

Combey does not see a price war with cloud because only 15 per cent of legacy systems are on the cloud today. That leaves a huge market to exploit. IaaS reached the $40 billion milestone worldwide this year. He anticipates the market to climb to $400 billion by 2021. This is not to say OVH doesn’t want to provide aggressive pricing for customers. Only that there is higher margin in public cloud today. He suggests that cloud needs to be properly managed internally or customer will not realize any price advantages. “There is no price advantage if you go to the cloud and it slows things down for you. People are now waking up and saying if you want customers to go to the cloud then you need to be attractive to them.”

A look back at cloud pricing reveals average entry-level cloud computing declined by some 66 per cent over the last two year period to November 2015,  according to the Pricing the Cloud report in 2014.

That decline in cloud pricing reflects in part the intense competition between public cloud computing providers, and also the rapid product innovation that is taking place among the key worldwide platform providers. Last year the report concluded the average entry-level cloud computing Instance is now at $0.12 per hour (based on Windows OS) in US dollars. The range of pricing available has narrowed over the past 2 year period, as cloud computing providers such as Rackspace Hosting and others have reduced their rates towards the levels charged by the global cloud providers – such as AWS, Microsoft Azure and Google.

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Public cloud pricing may be a double edge sword | Computer Dealer News.