After cheap, what is important for cloud services?
Amazon is indisputably the biggest name in cloud service providers. They have built up a strong market presence primarily on the argument that access to cheap compute and storage resources is attractive to companies looking to shed IT costs as they move from on-premises solutions to the cloud. But after the initial push for cheap resources, how will this market develop?
Is cheap really cheap?
Amazon has cut prices to their cloud offering more than 40 times since introducing the service in 2006. The way this gets translated in press circles is that cloud services pricing is approaching some floor. But is that true?
In October 2013, Ben Kepes over at Forbes wrote an interesting article that included a discussion of AWS pricing. In the article, he quotes some work done by Profitbricks that shows AWS pricing relative to Moore’s Law. The article is here, and the image from the article is below:
Moore’s Law tells us that performance will roughly double every two years. Of course it is not really a law but more a principle useful in forecasting how generalized compute and storage performance will track over time. The other side of this law is that we have Continue reading