Pricing the Cloud 2016 Edition – 2016 to 2020

  • ID: 3600236
  • Report
  • 110 pages
  • Tariff Consultancy
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Pricing the Cloud 2 Report Finds that Average Cloud Computing Pricing for Enterprises has Fallen by Two-Thirds since 2014, Cloud Pricing though is Now Starting to Stabilise

FEATURED COMPANIES

  • Accenture
  • CAT Telecom (Thailand)
  • Dimension Data
  • Interxion
  • Oracle
  • SingTel (Singapore)
  • MORE
The Pricing the Cloud 2 – 2016 to 2020 report surveys the current trends and pricing for global cloud computing providers The report also provides a pricing and revenue forecast for cloud providers from 2016 to 2020.

The latest edition of the Pricing the Cloud report is an extensively updated version of the report originally published in 2014.

The report’s focus is on the enterprise cloud segment, not on consumer-focused cloud services (such as web-mail or Apple iCloud). The report examines the two main generic forms of cloud connectivity, which are:

Public Cloud: with cloud services accessed over the internet, using a scalable shared resources on a pay as you use basis. Public Cloud services are typically provided as a high volume low margin basis by providers such as Amazon and Microsoft.

Private Cloud: with cloud services accessed over a corporate network, using a dedicated resource which is shared across the enterprise, usually charged as a fixed monthly rental fee (not on a pay as you use basis). Private cloud services are typically provided by IT services companies, integrators or telecoms providers.

The report considers the pricing for enterprise cloud computing services (public and private), using three main generic types including:

i) Pay As You Go – typically based on an hourly charge
ii) Hybrid vCloud computing – typically based on a monthly charge
iii) Private Cloud – typically based on a monthly charge & long term contract.

The author examines the pricing trends for the cloud computing sector and the forecast growth and future trends for the cloud computing sector fo the next four years to 2020.
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FEATURED COMPANIES

  • Accenture
  • CAT Telecom (Thailand)
  • Dimension Data
  • Interxion
  • Oracle
  • SingTel (Singapore)
  • MORE
A list of companies included in the report
Methodology
The key changes since the TCL 2014 Pricing the Cloud report
Executive Summary

PART ONE – Defining the cloud & the cloud services offered in the report
Introduction – Definition of cloud computing services for the purpose of this report
The development of cloud computing services
The reasons for the growth of cloud computing services
The evolution of cloud computing, public, private & hybrid clouds
Early cloud computing provider service pricing models
Other types of cloud computing services for the enterprise
The different layers of cloud computing services
Examples of new types of cloud computing services
Key Point Summary

PART TWO – Cloud computing provider services & pricing models
Introduction – The types of cloud computing provider pricing model available
The main cloud computing provider pricing models
The development of cloud service service pricing
Public cloud computing services – the generic pricing models
Hybrid cloud computing services – the generic pricing models
Private cloud computing services – the generic pricing models
Cloud computing related services – Other types of service pricing
Key Point Summary

PART THREE – The key cloud computing players & cloud computer provider pricing
Introduction – The market structure for cloud computing services
The range of cloud computing players & the generic service features offered
The new types of cloud computing service features
Commoditization versus specialization for the cloud computing providers
The key Public cloud computing players
AWS cloud computing services
Accenture cloud computing services
AT&T cloud computing services
Biznet Indonesia cloud computing services
BMC Software cloud computing services
BT Global Services cloud computing services
CAT Telecom Thailand cloud computing services
CenturyLink Cloud computing services
Citrix cloud computing services
Dell cloud computing services
CSC cloud computing services
Dimension Data cloud computing services
Fujitsu cloud computing services
Joyent cloud computing services
Microsoft cloud computing services
Oracle cloud computing services
Orange Business Services cloud computing services
OVH cloud computing services
Sungard AS cloud computing services
Navisite cloud computing services
Salesforce.com cloud computing services
IBM SoftLayer cloud computing services
Google cloud computing services
KPN cloud computing services
NTT Communications cloud computing services
Rackspace Hosting cloud computing services
SAP cloud computing services
SingTel cloud computing services
Telecom Italia cloud computing services
PLDT cloud computing services
Portugal Telecom cloud computing services
T-Systems cloud computing services
Telefonica Global cloud computing services
The key Hybrid cloud computing players
VMware cloud computing services
Verizon cloud computing services
The key Private cloud computing players
The key cloud computing pricing trends
Key Point Summary

PART FOUR – Pricing the Cloud 2 – 2016 to 2020 – trends, growth & forecasts
Introduction – Pricing trends, growth & forecast trends for cloud computing services
The adoption levels for enterprise cloud computing services
The growth rates and demand for cloud computing services
The growth rates for cloud computing services
The key drivers for cloud computing service growth
Pricing for cloud computing – vendor comparisons
Bundled cloud computing pricing per hour
Monthly cloud computing rental pricing
Cloud computing bandwidth pricing
Pricing for cloud computing – the changes in pricing over time
A pricing forecast for cloud computing – by region from 2016 to 2020
TCL pricing forecast – by cloud computing segment from 2016 to 2020
Key Point Summary

PART FIVE – Pricing the Cloud 2 – Conclusions & Trends
Pricing the Cloud 2 – Conclusions and the key trends for future cloud computing growth

Appendix One – A glossary of terms used in this report
Appendix Two – The exchange rates used in this report

List of Figures – TCL Pricing the Cloud 2 – 2016 report Figure 1: A chart showing the IaaS market share as of the end of June 2015: in per cent
Figure 2: A pie chart showing traditional IT running costs (as a percentage of the total)
Figure 3: A chart showing the different layers of cloud computing services
Figure 4: A chart showing generic cloud computing features from selected key providers
Figure 5: A table showing the key parts of the Amazon AWS cloud product portfolio
Figure 6: A table showing selected Amazon EC2 cloud computing pricing in USD
Figure 7: A table showing the AT&T Synoptic Storage as a Service tariff in the USA region in USD per month
Figure 8: A table showing the AT&T Synoptic Storage as a Service tariff in the Europe region in Euro per month
Figure 9: A table showing the AT&T Synoptic Storage as a Service tariff in the UK region in GBP per month
Figure 10: A table showing the AT&T Synoptic Storage as a Service tariff support price by region
Figure 11: A table showing the CAT Telecom IRIS Platform cloud pricing in USD per month
Figure 12: A table showing the CenturyLink Cloud & Hyperscale service attributes
Figure 13: A table showing CenturyLink Cloud computing pricing in USD per hour & per month (UK regional pricing in USD)
Figure 14: A table showing the mix of services offered by Dell Cloud product categories
Figure 15: A chart showing the different CSC IaaS cloud computing services deployed
Figure 16: A table showing the Dimension Data Public CaaS regional rate plan list in the Europe region (London UK in USD per hour & day)
Figure 17: A table showing the UK zone for the Fujitsu Cloud IaaS Trusted Public S5 cloud computing service in USD per hour
Figure 18: A table showing Joyent Infrastructure Container pricing in USD per Hour
Figure 19: A table showing Joyent Docker Container (Triton Standard) pricing in USD per Hour
Figure 20: A table showing Joyent Hardware VM – Windows standard pricing in USD per hour
Figure 21: A table showing pricing for Microsoft Office 365 Small Business services from selected distributors worldwide per user per month in USD
Figure 22: A table showing Microsoft Azure General Purpose Compute – basic tier pricing in USD per month and per hour
Figure 23: A table showing Microsoft Azure General Purpose Compute – standard tier pricing in USD per month and per hour
Figure 24: A table showing Microsoft Azure Compute – Optimized Compute tier pricing in USD per month & per hour
Figure 25: A table showing Microsoft Azure Compute – Optimized Compute tier pricing – with additional CPU, memory, disk capacity in USD per month & per hour
Figure 26: A table showing the Oracle Storage cloud tariff in USD per month
Figure 27: A table showing outgoing Oracle data transfer in tiers priced in USD per GB
Figure 28: A table showing the Oracle Compute Instances for General Purpose Shapes
Figure 29: A table showing the Oracle Compute Instances for High Memory Shapes
Figure 30: A table showing Oracle Dedicated Compute product bundles in USD per month
Figure 31: A table showing OVH public cloud RAM Instance pricing in USD per month & USD per Hour
Figure 32: A table showing OVH public cloud CPU Instance pricing in USD per month & USD per month
Figure 33: A table showing the range of Sungard VM configurations in USD per month
Figure 34: A table showing selected IBM Bare Metal SoftLayer pricing Public Cloud Instances in USD per month
Figure 35: A table showing the Google Compute Engine auto disk pricing Instances that are applied
Figure 36: A table showing the Google Compute Engine pricing in USD per Hour
Figure 37: A table showing pricing for Rackspace General Purpose Computing Instances in USD per Hour
Figure 38: A table showing pricing for Rackspace Compute Optimized Instances in USD per Hour
Figure 39: A table showing pricing for Rackspace I/O Optimized Instances in USD per Hour
Figure 40: A table showing pricing for Rackspace Memory Optimized Instances in USD per Hour
Figure 41: A table showing Rackspace Bandwidth pricing per GB in USD per month
Figure 42: A table showing PLDT Cloud IaaS service tiers and pricing in USD per month
Figure 43: A table showing Telefonica Virtual Disk network pricing in USD per month
Figure 44: A table showing Verizon Public Cloud pricing in USD per Hour
Figure 45: A table showing Verizon Cloud Storage pricing in USD per GB per month
Figure 46: A table showing the Vodafone Flexible Computing VM sizes
Figure 47: A table showing an example of Vodafone Flexible Computing Flexible Instance virtual server pricing in USD per Hour
Figure 48: A chart showing the use of cloud computing services in 2014 – by percentage of enterprises in selected EU-28 countries
Figure 49: A chart showing the rise in forecast cloud growth for the Europe and USA regions
Figure 50: A chart showing the increase in the number of AWS features since 2008
Figure 51: A pie chart showing the Vodafone Cloud Barometer Survey by region in percent
Figure 52: A pie chart showing the IaaS market share as of the end of June 2015 in percent
Figure 53: A chart showing the forecast growth in cloud services revenue from 2015 to 2019 in billions of USD per annum
Figure 54: A table showing the Cloud Computing vendor products in the price survey
Figure 55: A table showing the per hour pricing for selected cloud computing vendors (in USD) as a bundled tariff
Figure 56: A chart showing the per hour pricing for selected cloud computing vendors (in USD per hour) as a bundled tariff
Figure 57: A table showing the Cloud Computing vendor products in the price survey
Figure 58: A table showing pricing for selected cloud computing vendors in USD per month
Figure 59: A chart showing the per month pricing for selected cloud computing vendors in USD per Hour as a bundled tariff
Figure 60: A table showing the selected Bandwidth pricing per Hour for selected cloud computing providers
Figure 61: A table showing selected Bandwidth pricing per Hour for selected cloud computing providers in USD
Figure 62: A chart showing selected Bandwidth pricing per month of selected cloud computing providers in USD
Figure 63: A table summarizing standard public cloud computing pricing per Hour in USD
Figure 64: A chart showing a forecast for average cloud pricing from 2016 to 2020 in USD per Hour
Figure 65: A pie chart showing the forecast average percentage breakdown in public cloud computing revenues in 2016 in USD per month per annum per region
Figure 66: A table showing the glossary of terms used in this report
Figure 67: A table showing the exchange rates used in this report – converted into $1 USD

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FEATURED COMPANIES

  • Accenture
  • CAT Telecom (Thailand)
  • Dimension Data
  • Interxion
  • Oracle
  • SingTel (Singapore)
  • MORE
Pricing the Cloud 2 – 2016 to 2020 report, which includes a survey of published cloud pricing from more than 20 public cloud providers worldwide. It is an extensive update of the original Pricing the Cloud report published in 2014, and reveals that average entry-level cloud computing pricing has declined by some 66 per cent over the last two year period to November 2015.

The decline in cloud pricing reflects in part the intense competition between public cloud computing providers, and also the rapid product innovation that is taking place among the key worldwide platform providers.

The market for cloud computing products remains dominated by AWS which has a quarter of the IaaS segment, followed by Microsoft Azure. AWS has a record of consistent product innovation with over 500 product features launched since 2008, and continues to provide new services, including a recently announced cloud service to support the Internet of Things (IoT).

The author calculates that the average entry-level cloud computing Instance is now at USD $0.12 per hour (based on Windows OS). The range of pricing available has narrowed over the past 2 year period, as cloud computing providers such as Rackspace Hosting and others have reduced their rates towards the levels charged by the global cloud providers - such as AWS, Microsoft Azure and Google.

This research finds that the reduction in pricing continue to drive cloud adoption. Cloud services are now being used by enterprises across a range of their critical applications. Although enterprise cloud adoption differs significantly by country – according to a Eurostat survey of the EU-28 countries published in 2015 for example, Italian businesses have a cloud penetration rate of 40 per cent, but German businesses by contrast have a reported cloud penetration rate of 12 per cent.

The cost of introducing private cloud services is also falling, which is encouraging the large enterprise to adopt a hybrid cloud infrastructure. TCL has also identified a key trend for Data Centre companies, IT Integrators and some Telecom Providers to become the integrator of multiple cloud services – with BT Global Services for example positioning itself as the chosen integrator of the “cloud of clouds” for large businesses.

BT is following the lead of the IT Integrator – including professional service firms CSC and Accenture – who are also partnering with leading cloud providers, particularly AWS, in order to provide cloud migration services and hybrid secure clouds for large enterprises rather than develop their own competing public cloud services.

Into 2016 the cost of the public cloud appears to have reached a price point which is now relatively stable. For example, both AWS and Microsoft are offering a similar entry level Compute Instance, with other cloud providers following with similar pricing. In the 2014 cloud survey, TCL found that both companies were offering free initial tier Compute Instances, but more recent cloud pricing has become more rational with free pricing limited to a one month or three month promotional period.

The emphasis by the cloud computing provider is now increasingly on service innovation, not price. The global cloud platform providers (including AWS, Microsoft & Google) now offer a wide range of Compute Instances suitable for intensive computing, memory, content and fast I/O applications. Cloud providers are introducing analytical services available for cloud computing applications and are now offering cloud for the emerging Internet of Things (IoT).

New cloud services are being introduced to cater for specialized customer requirements as a means of avoiding price commoditization. However, the market share and computing power of AWS gives the company a considerable advantage in providing economies of scale which are passed on to the end user, with a claimed reduction in AWS cloud pricing made on 50 separate occasions since launch in 2008 – on average once a quarter over a 7 year period.

The author forecasts that average public cloud pricing will fall by some 14 per cent over the four year period from 2016 to 2020 – but with less intense price competition over the period.

The author also anticipates that revenues for public cloud services will increase rapidly over the same period by more than three times to some USD $82 billion.
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- Accenture
- Amazon Web Services (AWS)
- Apple
- AT&T
- Biznet (Indonesia)
- BMC Software
- BT Global Services
- CAT Telecom (Thailand)
- CenturyLink
- Cisco Systems
- Citrix
- Colt Telecom
- CSC (Computer Sciences Corporation)
- CTERA Networks
- Dell
- Dimension Data
- EMC
- Equinix
- Fujitsu
- Google
- HP Enterprise
- IBM (SoftLayer)
- iomart
- Interxion
- Joyent
- KPN
- Level (3)
- Microsoft
- NTT Communications (NTT Com)
- Navisite
- Oracle
- Orange Business Services (OBS)
- OVH
- PLDT (Philippines)
- Portugal Telecom (PT)
- Rackspace Hosting
- Salesforce.com
- SAP
- SingTel (Singapore)
- SunGard Availability Services
- T-Systems
- TelecityGroup
- Telecom Italia
- Telefonica
- Verizon
- VMware
- Vodafone

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