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Cloud competition results in a 66pc drop in prices

Prices for entry-level cloud services are falling, while more and more features appear as big providers shift to a higher gear, a new report suggests.

The report, called Pricing the Cloud 2 – 2016 - 2020, is a survey conducted by TCL (Tariff Consultancy Ltd) and is an update to the original TCL Pricing the Cloud report published back in 2014.

Among other things, it includes pricing from more than 20 public cloud providers worldwide.

The key finding of the survey is that the average entry-level cloud computing pricing has dropped 66 per cent in the last two years.

Fierce competition between big players is the biggest reason for such an intense drop in pricing. The biggest fight is still going on between AWS (Amazon Web Services) and Microsoft Azure, but AWS seems to be achieving better results.

The press release following the report says: “AWS has a record of consistent product innovation with over 500 product features launched since 2008, and continues to provide new services, including a recently announced cloud service to support the Internet of Things (IoT).”

The report says that the average entry-level cloud service costs $0.12 (£0.08) per hour, and it is these competitive prices that are driving more cloud adoption.

Still, the adoption varies significantly from country to country – Italy sits at 40 per cent, while Germany is at 12.

Private cloud services are also getting cheaper, encouraging businesses to go for a hybrid solution, as well. That has led some providers to become the “integrator of multiple cloud services”. The report points to BT Global Services as a good example, as it managed to position itself as the chosen integrator of the “cloud of clouds” for large firms.

The full report can be found on this link.