Cloud Computing And The Trend of Continuous Price Reduction

Cloud Computing pricing made by lower by Google, Amazon, Rackspace, even Microsoft could indicate that companies are discovering new ways to increase profit. After successful implementation of Open Stack Swift for Rackspace Cloud Files, the cost significantly lowered by Rackspace. With Akamai’s backend, it has simply made other CDN option out of the competition. In the same way, a continuous trend of slashing the cost of Cloud Computing by Amazon, Microsoft on various random services, simply denotes the giants are adapting a newer model of profit without any compromise in quality of service.

Cloud Computing and the model to attract potential customers to move to the cloud

Cloud Computing has clearly swiped out the enterprise customers from Dedicated Server. The reasons for the move is simple – Private Cloud offers more privacy and is more elastic by nature and billing model. Amazon stressed that the new price cuts will reduce costs for large companies. That was reflected by Amazon Glacier, although not really a Cloud Computing model. The reason for these reductions, according to some experts is to attract potential customers to move to the cloud model.

Previously the potential customers were only the enterprises. Today the potential customers has been the medium to bigger blog websites. Basically a blog site suits the model of Cloud Computing – sudden increase in demand, Pay as you go model, flexible billing options, optional reselling options – all has added this segment to be another potential customer base.

Cloud Computing and Scenario of Brands

We must also think that Microsoft and Google, in contrast to Rackspace or Amazon, their cloud computing services are not part of a core business, once each of these companies can grab a customer does has a chance to keep the consumer for a good period of time, given the need jumps from a cloud service to another. For these reasons, we can expect many more decreases in current prices in the near future. They probably found a surplus supply in the market for public cloud services.