Fixing the Pricing of Infrastructure as a Service

Infrastructure as a Service or IaaS is a platform that is based in the cloud and provides storage, computing, and networking plans on demand. Payment is on a pay-as-you-go model and users have to pay only for the quantum of resources. This in turn leads to substantial savings as no flat fees are charged as in traditional database systems. Thus, the Infrastructure as a Service pricing model is always a cost-effective proposition.

 


Several factors have to be taken into account before cloud service providers can arrive at the precise Infrastructure as a Service pricing. The pricing is based on what the providers are paying to established cloud providers for storage and computing facilities and at what prices the same services are being sold to their customers. The difference between the two represents the profits made by the cloud provider.

Now, how do cloud providers estimate the costs of services offered to their clients? The first step is to calculate as precisely as possible the COGS (Cost of Goods Sold) that is, every expense that is linked to the delivery of the IaaS services. These include the cost of utilities on which the IaaS offering will be built, the development cost of the IaaS, and the costs of labor for supporting the IaaS offering. This half of estimating the Infrastructure as a Service pricing is related to the cost of offering services by the cloud provider.

The other half is what should be charged to the customer. For this, market research is conducted to understand what the competitors are charging from clients. Care must be taken here not to overprice services to stay in the race.   

Location: United States

Comments

Post a Comment

Popular posts from this blog

The Functions of A Cloud Hosting Reseller

Image
A cloud hosting reseller is an IT service provider who buys cloud computing products and services from a cloud service provider and then resells them to clients. The difference between what is paid for cloud services and what is charged to clients is the profit of a cloud hosting reseller .  Typically, a reseller deals in a wide range of cloud computing services such as infrastructure, software, storage, and more. Resellers of cloud computing services working under a white-label reselling program can rebrand and resell those cloud products and services as their own. Also, a cloud hosting reseller can function as a value-added reseller (VAR) where additional services are offered as a value-add program and function. The activities of a cloud hosting reseller generally consist of the following areas.   ·         Software as a service (SaaS): Customers are offered preset software apps accessible through a web browser or application program interface. ·         Infrastructure as a servic
Read more

Docker and its Place in Cloud Computing

Image
Docker is a tool in cloud computing that automates the deployment of applications in an ecosystem that is designed to manage containers. These containers enable applications to function while being shifted from one platform to another. Docker has a distinctive technology that focuses on what developers and systems need. This state-of-the-art technology ensures that enterprises can create and run any product from anywhere. As regards Docker pricing , it has recently launched a new Subscription Service Agreement whereby organizations with more than 250 employees or more than $10 million in revenue have to buy a paid subscription. This Docker pricing starts at $5 per user per month. Further, a new Business subscription plan for larger organizations has also been introduced.   However, while considering Docker pricing, it should be noted that under the new Docker Personal plan, the Docker Desktop remains free for personal use, educational institutions, non-commercial open-source proj
Read more

The Functioning of A Free Linux Cloud Server

Image
Linux, an optimized operating system, runs about 90 percent of the public cloud workload mainly due to its adaptability to run a wide array of use cases, devices, and target systems. Almost all major cloud providers like AWS, Microsoft Azure, and Google Cloud Platform use Linux with around 40% of Microsoft Azure’s Virtual Machines operating on this platform.  A free Linux cloud server is a server provided by a hosting company without any charges typically for educational purposes, such as hosting a website for a class project or storing limited-volume class f iles . Some provide free Linux cloud server initially to promote their products and service. This free server also meets a range of purposes that include learning about cloud computing, how to manage a cloud server, running applications, and hosting websites. There are several ways that students can benefit from a free Linux cloud server . ·         To get hands-on first-hand knowledge about Linux and its various functio
Read more