Does a cloud price war risk providers' profits?

If you believe the headlines, public cloud providers are in the midst of an aggressive war where margins are being slashed and profitability is at risk. But data from the Cloud Price Index shows that although some services are being reduced in price, across whole portfolios very little has changed; the cost of our application has dropped just 2.25% in 10 months. Although compute has reduced about 4% in price since October, no reduction has been seen in management, PaaS, big data or storage. Considering 50% of the CPI specification's cost is on databases, there are still opportunities for providers to make profits even with declining prices (and margins) on compute. End users can make greater savings by committing: best-case pricing has reduced 12% since last October.

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