Liftr Look Ahead: Cloud Provider Pricing - The Complexity of Public Cloud IaaS Compute Pricing
Public Cloud IaaS Compute Pricing is Complex
Renting Instance Type Sizes
Remember, an instance type size is a rentable configuration that, at a minimum, specifies the rough expected performance for a specified number of virtual cores and system memory. An actual runtime instance is not created until after a customer pays to “instantiate” a virtual server.
“On-Demand” Pricing for Cloud Computing
“On demand” or “pay as you go” pricing is the baseline to rent a provisioned virtual server with a specific configuration and operating system option with a full Service Level Agreement. A cloud service provider sets its on demand price strategy for a type family in a region, with separate pricing for each size and individual configuration.
Short-Term v Long-Term Commitments
Our Liftr Cloud Components Tracker records and compares on demand pricing because all other pricing is discounted from on demand.
For customers who don’t want up-front or long-term commitments, Azure and AWS offer “spot” pricing while GCP and Alibaba Cloud use the phrase “preemptible” pricing. For customers willing to commit, Alibaba Cloud, AWS and Azure offer “reserved” and GCP offers “committed use” discounts for up-front payment of one- and three-year rental commitments.
This barely scratches the surface of cloud pricing complexity. Dedicated and disaggregated accelerators, dedicated sole-tenant hosting, a multitude of network and storage options, and data transfer costs each add even more complexity to cloud pricing models.
Liftr Cloud Components Tracker: http://bit.ly/2QceXlT
Liftr Cloud Regions Map: http://bit.ly/2LGB5PV
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