New data shows that cloud applications cost an average of $2.56 [£1.62] per hour with Amazon, Microsoft and Google all undercutting the remainder of the sector.
The Cloud Price Index, which has just been released for the first time by 451 Research, found that “hyperscalers” such as Amazon Web Services [AWS], Microsoft Azure and Google Compute Engine charge just $2.36 [£1.49] per hour for applications.
451 Research’s CPI is compiled based on figures obtained from cloud providers such as the three companies mentioned above as well as Swisscom, Verizon, UpCloud, Gandi, Lunacloud, Internap, Peak10 and Windstream. This is then correlated with what makes up a typical multi-service cloud application and from that the firm is able to work out a price.
“At this hourly price for an application that potentially could deliver in excess of 100,000 page views per month, it's easy to see how cloud is a compelling proposition for enterprises. Our research indicates that savings of up to 49 per cent can be achieved by committing to a minimum usage level, so enterprises should consider alternatives to on-demand if they wish to secure cost savings,” stated Dr Owen Rogers, senior analyst for 451 Research’s digital economics unit, according to Cloud Pro.
The same firm has also launched a Virtualisation Price Index [VPI] that shows the average hourly price of a basic three-tier web application based on quotes compiled in an identical way to the CPI. It resulted in a VPI of $0.73 [£0.46] across all the providers with the hyperscalers posting a slightly higher average price of $0.78 [£0.49].
Google became the latest of the so-called big three cloud firms to slash prices earlier this week after both Microsoft and AWS both engaged in a fierce march to drive prices down and the result is all three offering cheaper prices that ultimately will lead to higher shares of the market.