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451 cloud pricing report suggests Openstack breakthrough

Tamlin Magee | Oct. 20, 2016
It could prove a breakthrough point.

"The opportunity here really lies in brokers, because nobody wants to deal with multiple cloud providers, integrate them together, and get them all to work," Rogers says. "We found with the Cloud Price Index that end users who did use multiple cloud could save up to 74 percent on their direct expendiature. But the challenge is in managing all these different environments together."

"This is where the brokers have the real opportunity," Rogers explains. "They can be the ones who bring them all together, and they can do the management and the support element, so end users get all the benefits of being able to choose the best cloud without having, necessarily, to manage them all."

For its part, 451 recommends that buyers use hybrid or multi-cloud in such a way that they can understand the best way to execute each workload - encompassing cost, management, the kit itself, and any other location requirements.

It is not too much of a reach to imagine private clouds become even more affordable - as inclusive all-in-one technologies like hyperconverged and composable infrastructure become more affordable themselves. Running an efficient private cloud locally could well just make more sense for certain applications.

"These have the advantages of high intensity on the hardware, they're very well integrated and so they should theoretically be easier to manage," Rogers says. "The tools all work together so they have the benefits of potentially cheaper running of the hardware, but also easier to operate and better density of utilisation."

More immediately, large enterprises like Apple and Dropbox have started to drop their public cloud offerings - in both cases this was AWS. Rogers believes that enterprises would be correct to analyse how private cloud and public cloud usage is changing over time: "If you're a startup and you start using public cloud there's bound to be a point when you reach a certain scale and think to yourself, perhaps now is the time to move to private cloud," he says. "Something worth noting is companies like AWS, Microsoft, even Google, have a lot of discounting schemes."

"If I was an end user already using public cloud, first of all I'd suggest they look at these things like reserved instances and subscriptions, to see if they can squeeze costs before taking the big jump into private cloud."

The data in the report suggests that public cloud pricing will continue to fall. But Rogers believes it's a "constantly evolving landscape - over time it might be that public cloud is cheaper in all circumstances, but I certainly don't think that's going to be for a considerable amount of time yet," he says.

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