Cloud Pricing

With the dawn of cloud computing, IT procurement has fundamentally changed. Buyers have the upper hand. For providers, being competitive on cloud pricing is important, but standing out in terms of reputation, geographies, features, portfolio and expertise is more attractive than just being cheap. Providers need to step up and justify independently why they are worth more than their competition, and should use the availability of more pricing information as an opportunity to show their value.


Market Insight
Published: May 6, 2020

COVID-19: A 'cloud-20' response is accelerating major vendors' Opportunity

A better picture of cloud spending under COVID-19 conditions will be seen in Q2 2020 but we expect that over the longer term, an increased demand for cloud-based resources and a greater emphasis on IT transformation is likely. In particular, Microsoft and Amazon mentioned strength in their cloud businesses on their respective earnings calls.

Market Insight
Published: April 2, 2020

Cloud Microeconomics in the COVID-19 Pandemic

The sudden shift surfaces rough edges, although the underlying ability for millions of employees to work remotely for their respective employers' hinges on the cloud – and the ability of cloud platform operators to scale to this unprecedented demand.

Market Insight
Published: March 23, 2020

Hyperscalers Join the Fight against COVID-19 with High-Performance Compute, AI Services

In a sign that public cloud has arrived as a player in high-performance computing (HPC), Amazon Web Services, Microsoft Azure, Google Cloud and IBM have joined a public-private partnership with academic, industry and public-sector powerhouses to pledge free compute resources to COVID-19 researchers.

Market Insight

The Old Managed Service and the Sea: Cloud Economics Trends in 2020

Cloud in 2019 can be summed up in one word: volume. More services, offers, tiers and payment options have caused the number of cloud price items for sale from the dominant hyperscalers spiral to over two million. The sea of options is only likely to get deeper and choppier. 2020 will see enterprises look to optimize and control complexity with intelligent tools and managed services.

Market Insight

The Cloud Industry Must Embrace Complexity to Survive

Since September 2018, the Cloud Price Index has seen the number of individual SKUs from AWS, Google and Microsoft rise an astonishing 86% to over a million. That's the equivalent of all the bees in 22 beehives. Clearly, enterprises don't suit a 'one size fits all' approach.

Market Insight

Building the Millennium Falcon: The Economics of Cloud Support and Managed Services

As new cloud services come to market, and new cloud providers compete (and partner) for enterprise spend, applications will become increasingly complex. Support and managed services are destined to be a substantial part of the IT landscape going forward as a result of this evolving complexity.

Market Insight

AWS Starts to Optimize the Economic Cloud Journey

At its re:Invent conference in Las Vegas, AWS showed how it plans to optimize the cloud enterprise journey. With intelligent tiering, predictive scaling and inexpensive new tiers of capability, AWS is actively looking to give its customers ongoing savings.

Market Insight

Cloud Entropy: Cloud Must Sprawl; It's Written in the Stars

The universe and cloud alike have a natural propensity to become disordered, and such disorder leads to fragility. Energy, in the form of optimization and resource management, must be put back into the system to resolve the chaos. We identify three laws that dictate and define how cloud scalability impacts enterprise deployments.

Market Insight

The Emerging Three-Tier Pricing Model For Private Cloud

Our TCO analysis shows that, with falling prices for private cloud, on-premises offerings can emulate the flexibility and convenience of public cloud while giving CIOs the security, support and sovereignty they crave – if they're willing to pay for it.