03 March 2011

Is Cloud Computing Losing Its Value Proposition?


Cloud Computing Journal
We all know that hardware prices always comes down – but have you noticed any such trend in cloud computing? So, what happens when hardware prices keep coming down and cloud services pricing remains steady? The cloud value proposition of lowering IT costs slowly disappears … right? There is no doubt that the range of services available has significantly increased but on the price front there has been very little movement. Yes, if you want to try cloud for free then you have more alternative today – for example Amazon has introduced a micro instance. Google App Engine prices have remained more or less the same since the launch. Same is true for Microsoft Azure. Amazon is not much better. Since the launch of the AWS there has hardly been any price reduction. Between mid and end 2009 Amazon announced around 15% price reduction on a range of its services is probably the only instance.
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