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Dig your Pocket more for Cloud Infrastructure!


After a prolong year defining frugal market to accelerate Cloud Infrastructure; it seems the biggies are to bite a big cake. Yes, according to the learning it’s said that Microsoft, at least, is to raise price on its cloud computing infrastructure and further IBM is too foot the same door. What about Amazon?

It’s not a bad verse to say that Cloud has got the tip. Microsoft  MSFT -0.02% is raising prices on its Azure cloud. The heads has been taken up as some say to the currency issue of Greece but reports also cite that it’s nothing more than to swell the company’s revenue.

Recently, reports suggest that a Microsoft spokesman asserted on the price hikes to occur worldwide.

It’s not just Microsoft making moves.IBM-0.22% last week noted in a blog post that it’s changing SoftLayer cloud pricing, characterizing the move as price cuts. It cited as an example one configuration, which uses an Intel dual Xeo -2620 processor with 8GB of RAM that went from $3600 before to $1944 now. That’s a 39% discount.

Previously, a customer using an entry-level Virtual Server Instance in SoftLayer paid $35 per 5TB of outbound bandwidth. That rate is now $35 per 250GB. The charge for 5TB of outbound bandwidth is now $615. That’s a good amount of hike, which a source close to IBM confirmed, adding that most SoftLayer customers will likely see their costs decline. SoftLayer, unlike its rivals, does not charge for data transfer within its own private network even between zones.

This defines the problem with cloud price comparisons. Figuring out real cost is extremely difficult given the number of options — compute instance sizes, memory, storage etc. available and the fact that some vendors include services in base price that others do not. And unlike Amazon and Microsoft, IBM SoftLayer does not post its price list at all.

And for big customer who tends to buy lots of capacity, discounts are always negotiable. So comparing pricing across vendors is sort of like playing Jenga in an earthquake.

One thing is clear: prices are changing and not necessarily in the downward direction. To be fair most of the cuts historically have come on base-level stuff—compute and storage—not on higher-end database, workflow and other services. Still, you have to wonder if the Azure price increases, in particular, will give Amazon  AMZN -0.38% cover to follow suit.

The game changer will be from the point of Amazon as how the clouding giant would take the pocket-full deriving its intention to the forth exorbitant cloud infrastructure.


Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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