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Looking for Bargain-Priced Public Cloud? Try the US

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Looking for Bargain-Priced Public Cloud? Try the US

March 04, 2016
By Steve Anderson
Contributing Writer

Normally, when considering technology costs, the United States doesn't usually lead the way. New technology, ranges of technology and the like often come to mind, but technology expense seems to benefit countries with currencies that do well against the dollar, not the dollar itself. A new study from 451 Research (News - Alert), meanwhile, notes that cloud pricing the world over is actually most affordable right in the United States, and in some cases, by a healthy margin.

The 451 Research Cloud Price Index showed that it actually cost between seven and 19 percent more to host the same application in Europe, and going to the Asia-Pacific region raised the prices between 14 and 38 percent. Topping out the price scales was Latin America, which averaged 38 percent higher costs overall, owing mainly to a limited number of overall providers on hand. Additionally, recent price cuts from Amazon Web Services (AWS) and Microsoft (News - Alert) have helped not only make America the bargain provider, but it's also dropped the entire Cloud Price Index by six percent.

However, in an odd twist, 451 Research notes that this price drop actually should have been larger, up the double-digit range, given recent developments in the field. Also, the prices won't be down universally, either; object storage prices have been at the same level for the last 18 months, and 451 Research expects those costs to go up as time goes on owing in large part to data gravity. Data gravity is a phenomenon described as being similar to planetary gravity, where larger concentrations of data force applications and services to become attracted to this data, and have an impact on latency and throughput of data. Furthermore, there are even some exceptions to the data; one provider was actually cheaper than the United States could offer, and was offering said services in both the European and Latin American markets, two markets where a low-priced competitor could clean house.

Cost isn't the only consideration that those looking for public cloud access will want to account for, of course; things like infrastructure on hand or service level agreements (SLAs) might also come into play here. Yet cost is also a consideration that can't be avoided. Cost has direct impact on the bottom line, and though it's not the only impact to the bottom line involved, it's impossible to make any determination without considering costs. Thankfully, with major names like Microsoft and AWS involved, the rest of the considerations should be fairly simple, and this makes the United States a great place to start looking for cloud access.

Cloud access will only be more important to businesses the farther along we go, and with this information on hand, United States cloud providers may want to add some staff to handle the influx of demand.

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