Knowing the price of cloud computing for your company is indispensable when evaluating a product in the cloud. However, given the large range of services and the particular configurations of each user or company, calculating the total cloud computing price can be a real headache. Time of use, license, monthly subscription … many factors to be taken into account for calculation and not always taken into account may cause you to not even know how much you end up paying for the cloud computing service you want to acquire. So what is included in the price of cloud computing? What costs do you have to consider when purchasing a cloud computing service?
What is included in the price of cloud computing for companies?
Although it is true that each company has its own processes, programs and applications, there are some common elements when calculating the price of an enterprise cloud computing service. For example, a company that needs to host web pages in a simple HTML format will take into account elements such as storage, the amount of network traffic it supports and perhaps the content management system (like WordPress or Joomla) that you need to use.
Another company that has a more advanced website, connected to some type of business application or that needs to take a more analytical control of all the buying and selling processes that are carried out in it, while also connecting to databases of Inventory, you probably need many more resources to stay online. This increase in resources will come hand in hand with an increase in the total price.
But beware, many times one can find hidden costs that were not even contemplated at first, and that can lead to increase both the price of cloud computing for a company that uses the most basic as for the most advanced. In the Cloud Computing Guide you can find the most common hidden costs for cloud computing services.
Relevant factors to calculate the price of cloud computing
Usually, the price of cloud computing or similar services in companies is usually determined by factors inherent in the service, platform or tool that is contracted.Some of the types of costs that you can find are:
Payment by user
The pay per user is mainly associated with SaaS (software as a service), usually are e-mail systems or office suite cloud like Office 365 , Google Apps for Work , or Amazon WorkMail , and cloud software such as ERP , CRM or HRM , among others.Discounts are usually made for a high number of users or charges for the extra features that are included in the package chosen (basic vs. advanced). In addition, there are also options to pay annually versus the monthly, usually with a reduction of the total price for those who decide to pay one or several years in advance.
Payment by use
Pay per use is often seen in both IaaS (infrastructure and service) and PaaS (platform as a service), such as Microsoft Azure , Amazon Web Services or Google Cloud Platform, among others. The use is a very broad term in this sense, since depending on the service the use may refer to a different aspect: virtual machine power – on time , amount of network traffic used, amount of storage spaceused, etc.
Additional service costs
The costs of additional services can greatly increase the price of cloud computing for your company. In these cases, they are usually those services that are needed from the company to start up the service in the chosen cloud, such as data and process migration or a consulting service that advises throughout the process of implementation of the Services in the cloud.
How to avoid extra costs?
There are other aspects that also determine the price of cloud computing for companies, but mainly the three previous ones will contemplate much of the expenses in the cloud for any company. However, if a prior analysis of the company’s cloud computing needs is not done, it can be found to pay much more than is strictly necessary for the service, due to features that it does not even use.The Cloud Computing Guide includes a list of recommendations when choosing a provider for your cloud service.