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TCL Pricing the Cloud

  • March 2014
  • 97 pages
  • Tariff Consultancy
Report ID: 2063496


Table of Contents

Methodology – TCL Pricing the Cloud report

The TCL Pricing the Cloud report is based on original research, secondary research and interviews with a range of Cloud computing service providers and Data Centre companies and uses a range of sources to provide information on the trends for Cloud Computing – for pricing and overall trends for the segment.
It should be noted that the report’s focus is on the enterprise cloud segment, not on consumer-focused services (such as web-mail or Apple iCloud). The report considers the pricing for enterprise cloud computing services, including the main generic types including –
- Pay As You Go – typically based on an hourly charge
- Hybrid vCloud computing – typically based on a monthly charge
- Private Cloud – typically based on a monthly charge & long term contract
The report was written over the period from mid February 2014 to the end of March 2014. It takes into account research conducted by TCL into Data Centres and the implications of the growth of cloud services.

The report also includes desk research and gathers information via the use of a questionnaire from Cloud service providers and Data Centre companies to provide information on future trends, revenue and pricing which forms the basis of the five year forecast from the period from the end of 2014 to the end of 2019.
Cloud pricing is obtained from the cloud providers themselves, and is either based in USD or converted into USD from the local currency at the exchange rate shown in Appendix Two. Standard pricing is provided, valid as of the end of March 2014. It does not include any commercial or promotional discounts that may be provided and uses published cloud pricing.
For comparison purposes, the pricing shown is based on the European zone price if available. If no European zone tariff is available than pricing is based on the nearest available tariff. It should be noted that many US-based cloud providers provide a US-centric tariff. For example, for AWS’ Amazon EC2 service, the price tariff shown is based on the Ireland zone (AWS’ Amazon EC2 current point of presence in Europe). But for HP Cloud Compute, for example, TCL shows the US-based tariff, the only tariff available. It should be noted that many cloud providers charge for computing power as an Instance or a Computing Unit which can make direct price comparisons difficult to make. Each cloud provider typically offer a wide range of CPU, RAM & disk capacity in their service portfolio.Where possible the cloud pricing examples shown in the report are based on the following IT cloud specification for ease of comparison –
- OS - Windows Operating System
- CPU - 1 CPU up to 8 CPUs or virtual cores
- RAM - 1 GB of RAM ranging up to 8 GB or above
- Disk capacity – ranging from 20 GB up to 80 GB – or up to 1800 GB (local storage or SAN – if provided)

Where possible TCL provides details of the network bandwidth costs, where they are included, or as an add on option (in a per hour cost) if they are not. TCL also includes the additional storage costs, where they are made available by the cloud computing provider. Typically TCL shows the cloud pricing from each vendor as a Per Hour charge and as a per month charge. For each vendor TCL provides the number of hours of service included each month (which varies from vendor to vendor).
As the pricing shown in this report is for an enterprise service, the pricing shown excludes VAT or sales taxes.

There are 17 public cloud computing providers that have provided the most complete per Pay As You Go pricing for the TCL survey :

Amazon EC2, AT&T, CenturyLink, Dell, Dimension Data, Fujitsu, Google, HP, IBM CloudLayer, Joyent, Microsoft Azure, NTT Communications, OVH, Rackspace Hosting, Salesforce.com, Verizon-Terremark & VMware.

TCL also provides selected pricing from BT and Vodafone, and monthly rental pricing from selected providers including PLDT.

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