Cloud Pricing Explained
Deciding to transition your business to the cloud can be scary. Once the decision is made, there are still some final questions which need to be asked. Not too many organisations understand how cloud pricing works, of course, unless you are the IT Manager. I’m here to help you with the pricing components of moving to the cloud.
No standard Measurement
Cloud pricing is hard to measure because there are no standard measurements. A common method to use is to measure how much processing power a provider can grant your company. At the end of the day, it is best practice to realise what each company’s standard of measurement is and compare them accordingly. This is the easiest way to understand what you will be getting, and to help you make sense of any price variations based on these units of measurement.
There are Different Pricing Models
Just like any other service, there are various pricing models that can be used. These are:
- Resource-Based Model
Based on the resources that the company needs. A company pays for each server provisioned, along with an extra fee for all the elements that go into the server (storage, memory and network requests).
- Feature-Based Model
Based on which features developers need to access. These features each cost an additional fee, which contributes to the company’s final rate.
- Tier-Based Model
Companies can select from a list of service tiers at various price points based on use. Companies can adjust the plan if they end up needing more or less than expected.
So, which is best for you? For organisations that are larger, have infrastructure that changes frequently, need to support compliance requirements, and have a need for more detailed cost reporting, a resource-based solution is best for you. If you are a smaller organisation who wishes to pay based on features used or a list of services tiers at various price points then either of these models will work for you. Deciding which you prefer will be the determining factor in making a decision on your cloud pricing model.
At some point we all need to ask questions. Most of us didn’t know how cloud pricing worked before considering it, therefore, no question is a stupid question. Other questions to ask include :
- Do you have service level agreements?
SLAs are important to clearly set expectations for the service levels between the cloud consumer and the cloud provider. A good SLA developed cooperatively between the consumer and the provider should help ensure that both parties are protected and stand to benefit from the agreement.
- Is there a free trial period?
A free trial on a product allows the organisation to try out the product before entering a long term contract.
- Can services be configured to meet specific needs?
If the answer is ‘yes’, this means that a company can implement the product into their environment without the service provider’s help. The service they provide should be that easy and efficient.
If you are an organisation moving to the cloud, you will need to research how cloud computing can make you more efficient, and which models will best contribute to that aim – both in terms of what they can do and what they cost.
To find out more about the service provider Parashift use, click on the link: http://aws.amazon.com/pricing/