Rapid price drop in cost of cloud computing

Businesses are paying much cheaper prices for their cloud computing services than they were in 2014, according to new research.

It is estimated that the average cost of cloud computing applications has fallen by a staggering two-thirds in the last two years alone and will continue to drop. The analysis carried out by Tariff Consultancy calculated that the average cost of entry-level cloud usage for Windows-based systems is now around 8p per hour.

The London-based telecoms consultancy said that pricing is now stable, with many cloud providers offering systems priced at around the same level. Rather than competing on price, providers are now vying to attract new users through innovative products. These include multiple cloud services and specialising in areas such as intensive computing and memory, and cloud options that can provide analytical services. Cloud systems are also being developed to work with the emerging Internet of Things.

Tariff forecasts that the price will fall even further by the end of the decade. It said that between now and 2020, the cost of cloud services will dip by a further 14 per cent. Price competition is also expected to be less intense than has previously been seen.

“The decline in cloud pricing reflects in part the intense competition between public cloud computing providers, and also the rapid product innovation that is taking place among the key worldwide platform providers,” said Tariff.

It expects revenues for public cloud services to increase three-fold to around $82 billion by the end of the decade.

Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network. hSo provides managed networks designed for business. To get an instant cost for a leased line at your location, visit our online leased line price checker.

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