451 Research shows cloud costs falling slowly, but unearths huge savings for enterprises willing to commit




The latest 451 Research Cloud Price Index™ finds that while on-demand pricing has fallen only slightly at 2.25% since October 2014, it is nowhere near matching the 12% reduction achieved by those enterprises that negotiate and commit.

Using 451 Research’s cloud pricing model, representing a typical multi-service on-demand application, the cost is now $ 1.68 per hour; in October 2014, the cost for the equivalent basket of cloud services was $ 1.72.

Revealing the extent to which service providers encourage commitment to help them plan capacity and ensure capital for infrastructure investment, 451 Research’s best-case price indicator is only $ 0.95 – a huge 44% savings compared to on-demand. The best-case price measures the same application used the same way as on-demand pricing, but takes into consideration negotiation, subscriptions, reserved instances, term commitments, and sustained-use discounts.

Although the Cloud Price Index shows compute pricing has fallen by 4% and bandwidth has come down 3%, service providers are enjoying increased revenue and profits from other services such as management, PaaS, data and storage pricing, which have remained static over the same period.

“If you believe the hype, public cloud providers are in a cutthroat price war and ‘race to the bottom,’ where margins are being slashed, and profitability is at risk,” said Dr. Owen Rogers, senior analyst at 451 Research’s Digital Economics unit.

“The reality is there is no cloud price war. There are battles being fought over certain cloud services, particularly compute, where providers are seeking publicity and market share in return for price cuts. But cloud providers are more than just compute – considering 50% of our typical Web application’s costs relate to cloud databases, it’s easy to see how sales of more value-adding services can offset declining margins on basic services,” commented Rogers.

“Cloud has no bottom price,” Rogers adds. “Even if infrastructure is eventually given away for free, as long as the provider sells other services, which offset this loss, then it can still be a profitable business.”

The Cloud Price Index™ from 451 Research

451 Research created the Cloud Price Index to understand the real-world cost of cloud over time. Like a consumer price index, 451 Research’s Cloud Price Index is made up of a basket of goods, but in this case, it is a specification of the services required to operate a typical Web server application. The Cloud Price Index is the specification of a multi-service three-tier cloud application consisting of Linux VMs, object storage, block storage, relational databases, NoSQL databases, load balancing, access control lists and snapshot backup in a resilient architecture.

451 Research collects quotes from providers including AWS, CenturyLink, Colt, Google, Microsoft, Rackspace, Swisscom, Verizon and Windstream, representing 70% of today’s cloud market. By considering not just compute and storage in our basket, 451 analysts can understand pricing when related to end users’ real expenses, as well as service providers’ overall strategies. And we can analyze pricing now only in terms of on-demand consumption, but also when related to enterprise commitments and negotiations.

About 451 Research

451 Research is a preeminent information technology research and advisory company. With a core focus on technology innovation and market disruption, we provide essential insight for leaders of the digital economy. More than 100 analysts and consultants deliver that insight via syndicated research, quarterly market surveys of over 3,000 industry professionals, advisory services and live events to more than 1,000 client organizations in North America, Europe and around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The 451 Group. Learn more.






Facts Regarding Blackberry Mobile Phones

There are numerous cell phones that are on the market these days. Blackberry mobile phones are among the most popular Here we will look at some of the newest models available and what deals can be found.

The torch is among the newest blackberry on the market. It has both touch screen technology as well as a full keyboard which makes it the perfect thing for people that love to text message friends and family. It also has been found to have one of the best cameras to be found when it comes to a cell phone making it a hit with both the young and the old.

Another popular model is the style. This is one of the most popular flip style of phones that has been seen in recent years. Many people love this kind of phone as it gives them that added sense of security that it is protected. There is no touch screen with this phone, but that is fine as there are a lot of people around that do not really care for this new type of technology.

Maybe the pearl 3g is the phone for you. It is very small in comparison to some of the other models. This is great for some people that like smaller kinds of phones and it is very appealing, especially to women. The buttons on this phone are also placed in a manner that makes use very easy to do.

Checking with the provider that you get your cell phone service through can be the best way to see what options are available to you. They may have just the right thing to fit your budget. If not there are other ways that you can acquire the phone you want.

Upgrades are a common way for people to get a new phone. These can sometimes dramatically reduce the cost of the new phone. There are things that need to be considered when it comes to determining if this is feasible for you or not. Customer support specialists will gladly help you find out whether or not you qualify.

Some people find that the way for them to go is to get the phone at a reduced price but they have to sign up for a contract for a certain period of time. Depending on the length of the contract you choose will be what the price of the phone will be.

Buying a phone outright is always an option but can be quite expensive when it comes to blackberry phones. Even though it may cost a lot it will let you get just what you want without having to sign any kind of contract. Many people like this part as a contract is legal and binding.

Look into all of the choices that are available to you first before making any hasty decisions. Changing service providers may be a thought to get what you want when it comes to blackberry mobile phones. This is something that is totally up to the individual to decide as there is no right or wrong answer. Just be wary and use a little caution.

Get exclusive inside info on the latest and greatest Blackberry deals and models now in our complete overview of everything you need to know about the best free Blackberry Mobile offers.

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