Cloud Economics

Calculating the Break-even Point: an AWS Example


Instance:  m5.large (2 vCPU, 8 GB Memory), running Amazon Linux Region:  US East (northern Virginia) On-demand (pay-as-you-go):  $0.096/hour Standard 1-year Reserved Instance, all paid upfront:  $501 ($41.75/month) Formula:Calculation: Interpretation: If this instance is expected to run for more than 435 hours each month, consider a 1-year reservation. If this instance is expected to run for less than 435 hours […]

Best Practices for Managing Spend in the Cloud


Depending on which sources you read, you may have expected your cloud program to generate IT cost reductions of 40 percent to 50 percent, and have been disappointed to achieve savings far less than that.[1] Gartner sees organizations reporting saving an average of 16 percent by moving to public cloud, but, generally speaking, higher cost […]

“I thought the cloud was supposed to save me money?”


There are many reasons why companies look to move to the public cloud. Whether your company’s primary driver is an improved security posture, increased agility or cost savings, you will want to think carefully about the reasons behind your desire to move to the cloud. Unfortunately, there are still some misconceptions, particularly around costs, related […]

Should Your Organization Leverage AWS Spot Instances?


We all know that the adoption of public cloud by enterprises has been rising now for a number of years, and for many organizations it has become a significant element of their IT spend. There have, however, been cases of enterprises moving away from the public cloud back to on-premises, in some cases citing unexpectedly […]

The Agility Bubble


Mainstream IT is under a great burden – to lower operational costs and unleash agility. These oil-and-water, conflicting objectives are at the core of the lead­ership churn occurring behind the walls of today’s most trusted institutions. CXOs are freaking out. The heavy weight of technical debt and fast-moving competitive waters leave little room for classic […]

Why You Need an Enterprise Cloud Managed Service Provider


As enterprises formulate plans for their future IT needs, one trend is clear: cloud will be front and center. According to Gartner, the worldwide public cloud services market is projected to grow 21% in 2018 to total $186.4 billion, up from $153.5 billion in 2017, with the largest chunk of the revenue making its way […]