In 67 cloud compute scenarios, number of times vendors had the lowest, highest price It's a competitive advantage, but not one AWS can boast.ĪWS is "absolutely not the best price," said Kim Weins, VP of cloud strategy at Flexera, in an interview with CIO Dive.ĪWS is most often the costly cloud option Vendor When acquiring technology, decisions can come down to price, especially when services closely compare. Unless all cloud usage lies in EC2 or Fargate, "it's not as simple as I think some of the pundits are suggesting it is." How spending compares across clouds They just want to know that if they reach a certain threshold they'll obtain a discount, and easily understand where that discount was applied.īut that doesn't take away the need for companies to understand the inventory of cloud usage, he said. It's a transition from how the company used to calculate ROI.Ĭustomers are willing to sacrifice some of the savings they would get in exchange for simplifying the discount process, Chancellor said. As a recurring need, businesses want to make commitments to spending a specific amount for a discount. It's a likely space for other vendors to follow AWS. Google has "committed use discounts" where customers commit to certain levels of CPU or memory in exchange for a discount. If this model is successful for AWS, it might extend across the rest of their services.įor Azure, companies have to think of commitments at a resource level, Chancellor told CIO Dive. The Savings Plan is a bit unique across clouds.ĪWS' next-closest competitors, Microsoft Azure and Google Cloud have discount offerings too, but they're not measured in dollars, according to Scott Chancellor, chief product officer of Apptio, a technology business management software company. Anything above the commitment is charged as "regular on demand rates," according to AWS. Rather than on-demand usage, companies can promise to use $10 worth of services per hour, for example. Last week, AWS introduced Savings Plans, allowing companies to make dollar-based usage commitments for one to three years and save "up to 72%" for Amazon EC2 and AWS Fargate services. The cheaper and more flexible a service, the more allure for executives weighing cloud provider selection and commitment. In response, cloud vendors are trying to make budgeting simpler with pricing calculators, cloud billing APIs and utilization maps. In a survey of more than 300 IT executives, software and IT cost management solutions provider Flexera found 86% of respondents plan to increase IaaS/PaaS spend.Ĭloud-based investments are a significant shift from capital expense (CapEx) spending models companies traditionally relied on. IaaS and platform as a service spending are taking a larger role in IT spend as companies shift from on-premise investments. For more details, visit (opens in new tab).As infrastructure as a service vendors reach technology parity, billing emerges as a battlefront in the cloud wars. AWS Outposts supports Amazon EBS and Amazon S3, which can be used for content caching, playback, and archiving. VT1 instances are also available for on- premises deployment through AWS Outposts racks to support integration with uncompressed content workflows and keep networking latency low. Virginia), US West (Oregon), Europe (Ireland), Asia Pacific (Tokyo) Regions. They can also be used with AWS Elemental MediaPackage for reliable preparation and packaging of final content and AWS Elemental MediaStore.Īmazon EC2 VT1 instances are now available in US East (N. Additionally, the instances can help with implementing color correction, watermarking, titling, audio normalization, graphics overlay, or color space conversion, as well as simultaneously output multiple streams at different resolutions (1080p, 720p, 480p, 360p) and in both H.264 and H.265.Ĭoupled with Amazon Elastic Container Service (Amazon ECS) and Amazon Elastic Kubernetes Service (Amazon EKS), Amazon EC2 VT1 instances can be used to efficiently scale transcoding workloads, and, with Amazon CloudFront, to deliver content globally, AWS reported.
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