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Session Preview: How does Cloud Economics Affect Digital Transformation?

Dr. Owen Rogers, Research Director, Digital Economics will be presenting at both of our upcoming Cloud Computing Executive Summits – March 8 in New York and April 5 in London. In his session, “How does Cloud Economics Affect Digital Transformation?” Owen will explore the latest findings of the Cloud Pricing Index and breakdown many of the Digital Transformation myths prevalent in the industry today. Below, Owen gives us a preview of what he’ll discuss.

Digital transformation is a pointless endeavor unless the enterprise benefits as a result; gaining best value should be at the heart of every decision on the path to transformation. But value isn't just a function of economic gains – cost has a large part to play. The Cloud Price Index reveals these typical benchmark costs, in a real enterprise deployment. 

We recently published our latest edition to the Cloud Price Index and found that US pricing is the cheapest globally while users pay, on average, between 7% and 19% more to host the same application in Europe and 14% to 38% more in Asia Pacific. Latin America is the most expensive region – up to 38% higher than US prices – in part because it has the most limited selection of providers. CIOs are paying a ‘protection premium’ to use in-country or in-region services (rather than the cheaper option of US services), to ensure compliance with local regulations, to improve performance by bringing applications closer to users and to take advantage of local customer service.

Reflecting global pricing cuts from AWS and Microsoft in early 2016, the Cloud Price Index dropped by 6% since October. While this is good news for users, we note that it is nowhere near the double-digit drop that many might expect given recent headlines. The CPI measures the price change across a range of cloud services, and similarly, end users need to ensure they are considering the costs of all their cloud services, not just virtual machines. For example, the Cloud Price Index object storage price has remained at the same level for 18 months and, because of data gravity, 451 Research believes this will become an increasing expense for end users.

So with such variation in pricing across geographies, options and services, what should end users do when planning a digital transformation? We’ll reveal more at the Cloud Computing Executive Summits.

Don’t miss your chance to gain the latest insight from industry experts like Owen reserve your place today for the New York or London Summit!
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