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Cheap, convenient clouds are on the horizon, and will change the way enterprises do business

If you have a keen interest in cloud development, products/services, public/private pricing and cloud computing market competition, then “451 Research (opens in new tab)’s latest updates on Cloud Price Index” might interest you.

The research states that the basic cost of renting cloud services — from one of the big public cloud providers — has fallen over two per cent since the Index began in October 2014. During the last few years, the cost of cloud computing has dropped significantly; cloud providers want to snatch more and more market share from their competitors.

In an article published in Forbes (opens in new tab), 451 Research reports that on-demand cloud service is more cost effective. It can help companies save up to 44 per cent over the on-demand price. Interestingly, 451 Research’s CPI has shown a series of steep price cuts in pricing. The CPI is based on cloud quotes from a number of providers. The report includes quotes from AWS, Colt, Google, Microsoft, Swisscom, Verizon and Windstream.

The research shows how enterprising customers are adopting cost-aware approaches from the available pool of cloud providers. Those subscribing to cloud-based resources for several months, or years, are getting higher value in terms of cost and service.

Owen Rogers, the lead analyst for digital economics at 451 Research, explains: “Commitment goes a long way: capital, recurring revenue, financial lock-in and improved cash flow are all good news from the corporate angle. Advanced notification means better capacity planning, more accurate (and cheaper) purchase of hardware and infrastructure, and even the potential for better ‘bin-packing’ of capacity – all of this results in a better-used infrastructure, reducing sunk cost and maximising cheap unit prices.”

Almost a decade ago, cloud computing was considered a far-fetched idea. But many people have now started adopting cloud-computing services to store and backup their personal and business data. According to a forecast by Statista (opens in new tab), an online statistics company, the cloud storage industry is expected to generate over $4.04 billion revenue globally by 2016 — which shows how rapidly industry has grown.

Statistic: Global cloud service revenue from storage services from 2010 to 2016 (in billion U.S. dollars) | Statista

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(Chart Source:Statista)

The emerging market of public and private cloud infrastructure benefits enterprises, bringing down their input costs while it introduces new efficient services and provides a variety of products. It is foolish to make a data center when you are not sure what your needs will be in next six months. Cloud-computing services are now available at a most affordable price, and there is no reason to put-off taking advantage of them.

Rogers also believes: “Cloud has no bottom price. Even if infrastructure is eventually given away for free, as long as the provider sells other services, which offset this loss, then it can still be a profitable business.”

Price-cutting in cloud computing services is a win-win for both cloud service providers and enterprising business.