Monday, June 16, 2014

Cloud Infrastructure Pricing Webinar – June 4, 2014

Regardless of your definition, public or private, cloud has moved into the mainstream. The MassTLC Cloud Infrastructure Pricing Webinar reinforced this reality as results from the Cloud Infrastructure Pricing Survey were shared and analyzed by speakers Jim Cuff, Vice President of Technical Operations at Constant Contact and Mark Dudman, Senior Vice President of Product Development at NaviNet.

Conducted by the MassTLC Cloud Cluster in late 2013, the Cloud Infrastructure Pricing Survey garnered more than 100 responses, ranging from start-ups to long-established companies, and yielded new insights into cloud pricing amongst respondents. Jim and Mark led listeners through key findings in the Cloud Infrastructure Pricing survey:
  • 55% of respondents are live with at least one cloud project, with 87% of those using public cloud.
  • As a factor when choosing Cloud services, COST ranked at the top of the list, beating out flexibility, uptime, service, security, other, Opex/Capex and Open source.
  • Cost is also the reason most companies switch to a different provider.
  • The public cloud market is becoming more competitively priced, with key players such as Microsoft, Google and Amazon implementing significant price cuts. Additionally, new services are being added, so while offerings are becoming competitively price-wise, there is also pressure for them to remain innovative.
  • The speakers discussed that while the low upfront cost and lower risk many incentivize many to start on a cloud with a big provider, in the long run, as you scale, you are in the opex/high MRC zone. However, cost optimization within a cloud provider is often a viable alternative to switching providers in many cases.
  • Even with competitive pricing, Mark noted that many companies experience a bit of a shock when they receive their first bill, but with diligent effort, companies can see cost savings. Jim compared cloud services to turning off the lights when leaving a room – if companies manage their environment by turning off services when they are not needed, that can yield cost savings.
  • Vendor consolidation is beginning to occur more rapidly to support growth, with 26% having switched cloud providers. While Amazon remains at the top of the market and has done a phenomenal job at true elasticity and consistently using innovation to solve consumers’ problems, Mark noted that it’s expected Amazon is likely to lose some market share in the coming year, and that significant shifts in cost are expected as the market continues to evolve.
  • Positively, 85% of respondents plan to increase their cloud expenditures over the next year, a finding which compares with national trends and expectations.

For the complete findings, please see the MassTLC Cloud Cluster Survey presentation.

If you are a MassTLC members who would like to access the recording of the Cloud Infrastructure Pricing webinar, please contact Margot Rodger.

We thank speakers Jim Cuff of Constant Contact and Mark Dudman of NaviNet for their participation in this webinar, as well as the MassTLC Cloud Cluster Sponsors:  Internap, Digital Realty and Logi Analytics. As always, we appreciate your continued support.

Please continue to check out the Cloud Cluster main page for ongoing updates and information.

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