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After years of competitive introductory pricing and promotional offers, the price of cloud services and IaaS is on the rise. More modern companies like Google Cloud Platform and Amazon Web Services are charging a bomb to provide complete data care to their clients. The newer companies are easier to afford, but they are raising the old question of data security and performance.

Comparing the cost of cloud services is not as easy as comparing the price of mobile devices and system software. A myriad of factors contributes to the differences in pricing, ranging from the duration of the contract to size of the storage system. The type of the virtual machine or VM also governs the cost of cloud services actively. Cloud providers can use different pricing models and use frequent promotional discounts for their services. That makes it even more difficult for an expert to compare the actual price of various IaaS directly.

How can you make the best of any deal?

While Google and Amazon may offer the most popular cloud services, they might not be the best deals for your company. According to the finances of your business, a local and more reachable host may be more suitable for you. Getting managed IT support NYC is not difficult, but getting the best out of a bargain deal is. You can still make the best of any offer and situation since you can always scale the plans up and down as you need. Going for a long-term deal is always cheaper, but make sure the company has a good review before you decide to close the deal.

In IaaS, use Reserved Instances or RIs to save more money. By signing up for a one-year or a three-year contract with a company, you will end up saving more than 20% of the initial cost. Turn your on-demand VMs to RIs whenever possible. You can end up saving between 24% and 75% on each deal. In fact, if you have a regular workload, then you should go for at least 80% of your VMs as RIs. If your workload is relatively lesser, you can go for only 30% to 50% of your VMs as RIs. Keep the rest of the service-on-demand for better performance of your database and secure storage of your data.

Google’s model for increasing their cloud reach is entirely different. They use a Sustained Usage Discount or SUD. Many experts prefer this mode of storage model since it needs no commitment upfront. The clients get certain discounts from the company based on how much time and VM service the company has been using that month. The relationship between VM and cost is an inverted one. For example – you can easily get a 20% if you are using the VM for 50% of the month, and when you are using it 100% of a month, you get about 30% or more discount directly from the company. On the other hand, Microsoft has Enterprise Agreements. These are private negotiations with companies, which no external parties get to know. Therefore, the terms and conditions for discounts from Microsoft are rather covert.

Is there a valid cost comparison method?

It is quite difficult to state which deal is the best for your company. There are hundreds of parameters you need to consider before you zero in on a particular service provider. IaaS is not as easy to decipher as SaaS, so you must undergo extensive analytics reports and cost comparison charts before you can choose a cloud partner for your business and website.

Here is a list of factors that can affect your virtual machine pricing –

  • Microsoft Azure is more cost effective for all customers that use a solid-state memory device.
  • Google can be the best deal if you do not need Solid State Drives or SSDs.
  • Amazon Web Services provides a middle ground between the above two options.
  • American Tech Pros offers the most comprehensive cost-effective cloud service and solution for all kinds of companies.

Once you start to factor in other key elements like RIs, EAs, and SUDs, the calculations become rather gray. Always speak with representatives from each of your shortlisted options before you go ahead and make a commitment.

Why do the cloud service providers charge so much?

While you need to think of their RDBMS costs, you also need to think about their network maintained and hardware costs. Your company may be getting rid of a huge chunk of hardware and hard disks to convert to cloud storage, but these providers need a data center with a robust backup system, network device setting, and network infrastructure maintenance.

Then, comes the cost of labor. It includes engineers who troubleshoot client cloud problems and data center hardware issues. It includes DBAs who are in charge of managing the databases of multiple companies. The software experts who are keeping the storage system software updated and protected from malware attacks. Since the provider and the clients expect the entire staff to ensure 24*7 uptime, the maintenance charges of an IaaS team can become highly costly.

Hardware operation and hardware acquisition are other costs you need to include in their budgets. The total amount of virtual RAM in use in public clouds and the cost of per rack unit of your company hardware also contribute to the total pricing. It is rather similar to storage costs, which depends on the space your data is using (GB) on the virtual disk.

The usual price quote from any cloud service provider includes software license charges, support fees, hosting fees and a lot more. That makes precisely predicting the service rate rather impossible. Do not be afraid to ask your service provider about the breakdown of their quote and the origin of a cost if you are interested in their services. If you do not see much difference in the charges between two competing service providers, always go with the one which has a better uptime history and great reviews. Check out https://americantechpros.com/ for a comprehensive idea about uptime guarantee and best services within a feasible budget for SMBs.