|By Udayan Banerjee||
|February 9, 2011 09:15 AM EST||
We all know that hardware prices always comes down – but have you noticed any such trend in cloud computing? So, what happens when hardware prices keep coming down and cloud service pricing remains steady? The cloud value proposition of lowering IT costs slowly disappears … right?
There is no doubt that the range of services available has significantly increased but on the price front there has been very little movement. Yes, if you want to try cloud for free then you have more alternatives today – for example, Amazon has introduced a micro instance.
Google App Engine prices have remained more or less the same since the launch. Same is true for Microsoft Azure. Amazon is not much better. Since the launch of AWS there has hardly been any price reduction. Between mid and end 2009 Amazon announced around 15% price reduction on a range of its services, which is probably the only instance.
Compare this with the drop in price of available processing power and storage where the prices have been halving every two years. Have a look at the statistics below. The footprint has also been reducing with the price, thereby also reducing the management overhead.
If you superimpose this steady pricing of the cloud service what can you conclude?
- What was very cost effective (50% less) 2-3 years back may only be marginally cost-effective.
- If the cloud cost does not come down, cloud services will cease to be cost-effective.
Moore’s Law and other related statistics
Moore’s law describes a long-term trend in the history of computing hardware. The number of transistors that can be placed inexpensively on an integrated circuit has doubled approximately every two years. The trend has continued for more than half a century and is not expected to stop until 2015 or later. The price of processing power has shown a similar decline. Here is the statistics from Wikipedia.
Matthew Komorowski has collected hard drive capacity/price data and created the graph below. The cost reduction is in the order of about 40-45% per year – which means it becomes half in 2 years. This trend is visible for last 30 years and likely to continue for some more time to come.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
Jan. 17, 2017 05:00 PM EST Reads: 344
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Jan. 17, 2017 04:45 PM EST Reads: 740
I’m told that it has been 21 years since Scrum became public when Jeff Sutherland and I presented it at an Object-Oriented Programming, Systems, Languages & Applications (OOPSLA) workshop in Austin, TX, in October of 1995. Time sure does fly. Things mature. I’m still in the same building and at the same company where I first formulated Scrum. Initially nobody knew of Scrum, yet it is now an open source body of knowledge translated into more than 30 languages People use Scrum worldwide for ...
Jan. 17, 2017 04:30 PM EST Reads: 2,940
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 17, 2017 03:30 PM EST Reads: 5,312
True Story. Over the past few years, Fannie Mae transformed the way in which they delivered software. Deploys increased from 1,200/month to 15,000/month. At the same time, productivity increased by 28% while reducing costs by 30%. But, how did they do it? During the All Day DevOps conference, over 13,500 practitioners from around the world to learn from their peers in the industry. Barry Snyder, Senior Manager of DevOps at Fannie Mae, was one of 57 practitioners who shared his real world journe...
Jan. 17, 2017 03:00 PM EST Reads: 563
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
Jan. 17, 2017 02:45 PM EST Reads: 4,099
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Jan. 17, 2017 02:15 PM EST Reads: 3,349
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Jan. 17, 2017 02:00 PM EST Reads: 1,071
As the race for the presidency heats up, IT leaders would do well to recall the famous catchphrase from Bill Clinton’s successful 1992 campaign against George H. W. Bush: “It’s the economy, stupid.” That catchphrase is important, because IT economics are important. Especially when it comes to cloud. Application performance management (APM) for the cloud may turn out to be as much about those economics as it is about customer experience.
Jan. 17, 2017 02:00 PM EST Reads: 4,620
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Jan. 17, 2017 01:45 PM EST Reads: 812
“RackN is a software company and we take how a hybrid infrastructure scenario, which consists of clouds, virtualization, traditional data center technologies - how to make them all work together seamlessly from an operational perspective,” stated Dan Choquette, Founder of RackN, in this SYS-CON.tv interview at @DevOpsSummit at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 17, 2017 01:15 PM EST Reads: 3,522
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 17, 2017 12:45 PM EST Reads: 5,052
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 17, 2017 12:45 PM EST Reads: 3,417
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Jan. 17, 2017 12:15 PM EST Reads: 2,444
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 17, 2017 11:45 AM EST Reads: 5,707
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Jan. 17, 2017 11:45 AM EST Reads: 1,905
Synthetic monitoring is hardly a new technology. It’s been around almost as long as the commercial World Wide Web has. But the importance of monitoring the performance and availability of a web application by simulating users’ interactions with that application, from around the globe, has never been more important. We’ve seen prominent vendors in the broad APM space add this technology with new development or partnerships just in the last 18 months.
Jan. 17, 2017 11:30 AM EST Reads: 1,578
The unique combination of Amazon Web Services and Cloud Raxak, a Gartner Cool Vendor in IT Automation, provides a seamless and cost-effective way of securely moving on-premise IT workloads to Amazon Web Services. Any enterprise can now leverage the cloud, manage risk, and maintain continuous security compliance. Forrester's analysis shows that enterprises need automated security to lower security risk and decrease IT operational costs. Through the seamless integration into Amazon Web Services, ...
Jan. 17, 2017 11:30 AM EST Reads: 1,764
A lot of time, resources and energy has been invested over the past few years on de-siloing development and operations. And with good reason. DevOps is enabling organizations to more aggressively increase their digital agility, while at the same time reducing digital costs and risks. But as 2017 approaches, the hottest trends in DevOps aren’t specifically about dev or ops. They’re about testing, security, and metrics.
Jan. 17, 2017 10:30 AM EST Reads: 1,251
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jan. 17, 2017 05:45 AM EST Reads: 3,562