31 March 2017
Yesterday we announced that we’re cutting the price of our OpenStack cloud by as much as 44%, and the reason is simple. The UK business community needs cost-effective, reliable, supported cloud options. Thanks to the growth of eCloud Flex, we’ve benefitted from economies of scale in CPU, RAM and disk space so it makes perfect sense to pass those cost savings onto our clients, especially at a time when everyone else seems to be adding costs on for this, that and the other.
There’s too much confusion around the way some elastic, burstable cloud products are priced which means that customers end up paying a lot more than they expected as hidden costs emerge.
Some providers charge you per hour for load balancing and then again based on the number of connections or amount of data processed. Our focus is on delivering a simple, flexible pricing model where you get what you pay for. We are prepared to go a great deal lower on pricing as we continue to innovate. It really is as simple as that.
In my opinion, talk around the on-demand cloud market has centred too much on the big American providers for too long. Analysts who are betting on AWS to dwarf all hosting suppliers over time, may have underestimated the difficulties and costs that mass hosting providers will have upgrading their massive infrastructure as time progresses.
It’s easy in business to become a victim of your own success and I believe that AWS, due to its size, is already unable to match the level of support provided by some of the smaller British hosting and cloud outfits.
They can’t give the same promises where data is concerned. The important thing is that the UK business community have British options, and they know exactly where their data is stored.
Whilst it may be harder for these big providers to keep up with changing technology and demand, it has been great for our industry having AWS enter the market as it has encouraged innovation and forcing everyone to up their game or fall behind.
It is important to remember too that cloud is not for everyone and whilst it’s great for testing environments and smaller projects, as usage increases it becomes very expensive and often cost prohibitive. Cloud isn’t a buzzword or bandwagon to jump on, it’s a serious business decision and every option needs to be considered. For example dedicated hosting platforms don’t have the penalties of extra costs for CPU, load balancers and bandwidth as they expand, so it’s important to really investigate the options and pitfalls of every type of solution.
I am proud to announce price cuts when many other prices are rising, particularly in the chaos of Brexit, and I will always be committed to providing the best value services with the best level of support for all of our clients.