For years now, company managers and IT departments have searched for ways to keep cloud computing costs low. Unfortunately for the penny pinchers, there are whispers that Microsoft and IBM are about to make changes that will increase the price of their cloud computing solutions. In addition, there are discussions that Amazon, too, will join.
What does this mean for businesses? It means that business may want to start preparing for higher cloud computing costs in the near future.
These changes could take place as early as August 1st for Europe-based companies. The Eurozone can expect a 13% increase for Microsoft’s Azure cloud. According to Arnet.com, Australia will also see Azure prices increase by 26%. These price increases will likely make their way to North America soon.
A Microsoft spokesperson commented:
“In light of the rapid evolution of the market for cloud services and evolving local dynamics, we can confirm that as of August 1 2015, we will adjust prices for most enterprise cloud products within the EU/European Free Trade Association region. The changes will not affect existing annuity volume licensing agreements but will apply to most enterprise cloud products under new or renewing contracts.”
Like Microsoft, IBM is looking to increase their pricing for their SoftLayer cloud structure. Prior to increasing prices, IBM charged $35 for 5TB of bandwidth; however, they’ve restructured and now $35 will get you 250GB of bandwidth. Those wanting 5TB will now face a $615 price tag. Thankfully, IBM does not look to change its policy of free data transfer within the private network.
Problems with Cloud Comparisons
These changes further illustrate the issues some businesses have with comparing the prices of different cloud systems. Furthermore, it makes deciding the true cost of any cloud computing platform difficult, largely due to the options available—including memory, computer sizes and storage. Cloud vendors also vary by which services they include in their base price.
To make matters worse, IBM doesn’t lay its prices out easily for customers. Prospective customers will need to spec the system they need in order to see how much it’ll cost. Another tricky aspect comes for larger companies who will be purchasing large amounts of capacity. They are always likely to be able to negotiate a discount; however, this makes price comparisons a veritable nightmare.
You can find more information about Microsoft’s cloud computing capabilities by visiting the Innovative Architects blog and knowledge center. Or, feel free to contact us if you require assistance or information regarding your transition to the cloud.