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Can Falling Prices of the Cloud Make Hosted Solutions Irrelevant? | @CloudExpo #Cloud #DataCenter

One big takeaway from the various reports published over the years is how much affordable cloud has become

The margins of cloud products like virtual machines are still in the 50% range. In essence, price drops are going to be a regular feature for the foreseeable future. This begets the question - are hosted solutions becoming irrelevant today?

Boston-based market research firm, 451 Research, has been publishing their ‘Cloud Price Index' for a few years now. The quarterly study looks into the pricing of various offerings in the cloud market to understand the shifting dynamics in the public, private and hybrid cloud market. According to Dr. Owen Rogers from 451 Research, the approach here is similar to how inflation is calculated - the price of a distributed sample of products from the market are analyzed periodically to ascertain the rise or drop in the prices of the various cloud offerings.

One big takeaway from the various reports published over the years is how much affordable cloud has become. For instance, the price of Amazon AWS alone has been cut more than fifty times in ten years since 2006. A client who has stayed with them through all these years would have seen a price drop of nearly 18%.

The falling prices have helped more businesses shift their operations to the cloud and this contributes towards improving the economies of scale that further brings down the price of the cloud. Dr. Rogers says that the margins of cloud products like virtual machines are still in the 50% range. In essence, such price drops are going to be a regular feature for the foreseeable future.

This begets the question - are hosted solutions becoming irrelevant today? Most enterprise products and service providers continue to offer both cloud and hosted variants to their clients. But could this be a thing of the past very soon? Or, are there still places where cloud may not make sense?

According to technology writer Oren Rofman, there are still specific areas where cloud may not make sense. Speaking specifically about CDN services, Rofman writes that businesses with a modest or extremely localized user base, or those that need to adhere to stringent governance requirements may find it necessary to host their data on a local server.

It is not just CDNs though. Healthcare and financial enterprises routinely host sensitive information in private data centers instead of public clouds in order to ensure data security. In countries like China where content on the web is heavily censored, a lot of global businesses choose to host data in localized private data centers for a more reliable access. This is also popular because it is easier to control latency inside private data centers and across private WAN networks. Public clouds simply cannot match the kind of latency that such hosted centers provide.

Last, cloud suffers from a perception problem. Private data centers suffer from cyber-attacks all the time. But a similar attack on a cloud-based product or service tends to affect millions of customers and is thus a lot more newsworthy. The barrage of news reports over the past few years about attacks on cloud tools mean enterprise businesses are likely to always treat cloud with suspicion.

To put this in short, hosted software products and services are not going away anytime soon. But as adoption of cloud increases, the negative perceptions about security are likely to fade away. Industries like healthcare and finance, as well as businesses in countries like China are likely to prefer hosted data centers. But as a policy, businesses are already going cloud-first and this is only going to go up over time.

Track 1. Enterprise Cloud | Cloud-Native
Track 2.
Big Data | Analytics
Track 3. Internet of Things | IIoT | Smart Cities

Track 4. DevOps | Digital Transformation (DX)

Track 5. APIs | Cloud Security | Mobility

Track 6.
AI | ML | DL | Cognitive
Track 7.
Containers | Microservices | Serverless
Track 8. FinTech | InsurTech | Token Economy

Cloud Expo | @ThingsExpo 2017 Silicon Valley
(October 31 - November 2, 2017, Santa Clara Convention Center, CA)

Cloud Expo | @ThingsExpo 2018 New York 
(June 12-14, 2018, Javits Center, Manhattan)

Download Show Prospectus ▸ Here

Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers.  

Companies are each developing their unique mix of cloud technologies and services, forming multi-cloud and hybrid cloud architectures and deployments across all major industries. Cloud-driven thinking has become the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, and the public sector.

Cloud Expo is the single show where technology buyers and vendors can meet to experience and discus cloud computing and all that it entails. Sponsors of Cloud Expo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35-minute technical session
  • Online advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Editorial Coverage on Cloud Computing Journal.
  • Tweetup to over 75,000 plus followers
  • Press releases sent on major wire services to over 500 industry analysts.

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez by email at events (at) sys-con.com, or by phone 201 802-3021.

The World's Largest "Cloud Digital Transformation" Event

@CloudExpo | @ThingsExpo 2017 Silicon Valley
(Oct. 31 - Nov. 2, 2017, Santa Clara Convention Center, CA)

@CloudExpo | @ThingsExpo 2018 New York 
(June 12-14, 2018, Javits Center, Manhattan)

Full Conference Registration Gold Pass and Exhibit Hall ▸ Here

Register For @CloudExpo ▸ Here via EventBrite

Register For @ThingsExpo ▸ Here via EventBrite

Register For @DevOpsSummit ▸ Here via EventBrite

Sponsorship Opportunities

Sponsors of Cloud Expo | @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online targeted advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage
  • Unprecedented Marketing Coverage: Editorial Coverage on ITweetup to over 100,000 plus followers, press releases sent on major wire services to over 500 industry analysts

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez (@GonzalezCarmen) today by email at events (at) sys-con.com, or by phone 201 802-3021.

Secrets of Sponsors and Exhibitors ▸ Here
Secrets of Cloud Expo Speakers ▸ Here

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-4, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Delegates to Cloud Expo | @ThingsExpo will be able to attend 8 simultaneous, information-packed education tracks.

There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content.

Join Cloud Expo | @ThingsExpo conference chair Roger Strukhoff (@IoT2040), October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, for three days of intense Enterprise Cloud and 'Digital Transformation' discussion and focus, including Big Data's indispensable role in IoT, Smart Grids and (IIoT) Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) Digital Transformation in Vertical Markets.

Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 21st Cloud Expo | @ThingsExpo October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 21st International Cloud Expo October 31 - November 2, 2017 in Silicon Valley, and June 12-14, 2018, in New York City.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

The upcoming 21st International @CloudExpo@ThingsExpo, October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY announces that its Call For Papers for speaking opportunities is open.

Submit your speaking proposal today! ▸ Here

About SYS-CON Media & Events
SYS-CON Media (www.sys-con.com) has since 1994 been connecting technology companies and customers through a comprehensive content stream - featuring over forty focused subject areas, from Cloud Computing to Web Security - interwoven with market-leading full-scale conferences produced by SYS-CON Events. The company's internationally recognized brands include among others Cloud Expo® (@CloudExpo), Big Data Expo® (@BigDataExpo), DevOps Summit (@DevOpsSummit), @ThingsExpo® (@ThingsExpo), Containers Expo (@ContainersExpo) and Microservices Expo (@MicroservicesE).

Cloud Expo®, Big Data Expo® and @ThingsExpo® are registered trademarks of Cloud Expo, Inc., a SYS-CON Events company.

More Stories By Harry Trott

Harry Trott is an IT consultant from Perth, WA. He is currently working on a long term project in Bangalore, India. Harry has over 7 years of work experience on cloud and networking based projects. He is also working on a SaaS based startup which is currently in stealth mode.

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