Just How Cheap Can Public Cloud Computing Get?
March 14, 2014
Grazed from ReadWrite. Author: Matt Asay.
Public cloud computing is all the rage, and cost is a big driver. It’s not the only driver, mind you, or even the top reason that developers turn to the public cloud, which is primarily about development agility. Still, cost is a serious consideration nudging enterprises to forsake building out data centers to rent space in Amazon, Rackspace, Google or others’ clouds. Given this, just how low can public cloud pricing go?
Cheap And Getting Cheaper
Pretty darn low, if Bernard Golden’s analysis is correct. Golden looks at hardware and software infrastructure, Internet bandwidth, energy, labor and cost of capital and finds public cloud trumps data center in every category. That cost savings isn’t small, either:…
[W]hile the cost savings a cloud provider achieves by designing and directly procuring servers may only be 15%, the total cost savings available to a cloud provider summed across all six categories might be as much as 75%. That’s real money. And given that public cloud providers will continue to wring costs from their own operations in order to lower prices for customers, it’s money that may keep multiplying. Or dividing, if you prefer. One key way, as Golden points out, is by driving ever higher utilization of fixed assets:…
Read more from the source @ http://readwrite.com/2014/03/14/public-cloud-cheap#awesm=~oyvC4zjsHpyKWS
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