Feeds

If you spend THIS much on cloud, perhaps you need a rethink

Cloud makers reveal tipping point from public to private

Application security programs and practises

There's only so much you should spend on commodity cloud services before you consider other options like getting a discount, moving back to your own servers, or to a private managed cloud, according to cloud providers and customers.

If you're spending more than $10,000 (£6,500) a month or so, then it's probably worth considering moving to either a dedicated server, your own data center, getting a discount from your cloud provider, or going to an externally managed "private cloud", a trio of cloud providers told The Register on Friday.

"If you're running full time servers in the cloud that you never turn off, at some point it might make sense to look at long-term contacts with your public cloud or to start owning your infrastructure in some way," Rackspace's director of strategy Scott Sanchez, says.

The amount of spend at which this becomes apparent is about $10,000, Sanchez indicated. "We were at about $12,000 in just VM spend and we decided to move some workload to the office," Joe Emison, CTO of Buildfax, a provider of property history to the insurance industry, says. "We didn't want to buy a server [but] we came to this conclusion that 'we are just overpaying'."

The company now runs its tech on a mixture of scalable public services and private services for its predictable workloads. This hybrid cloud (frankencloud - Ed) has let it save money, while running across a mixture of 2U and 4U commodity hardware with varying RAM capacities.

We put the $10k figure to some of our industry contacts and they agreed that at this point, customers can probably figure out a more cost effective way of running their infrastructure.

"I would agree with that," Marc Jones, a SoftLayer product innovation veep, said. "If you're spending $10,000 on public cloud [VMs] that's a pretty substantial footprint - there is a cost associated with that."

For many punters, the economic benefits of a pay-as-you-go rented virtual machine start to disappear at around $10,000 of predictable monthly spend, and at this point it really does make sense for them to investigate other support options or even start owning their own hardware.

"Cloud doesn't have to be virtualized," Bailey Caldwell, Rightscale's veep of business development, says. "The need for a VM is certainly how it started but it's not how I see it long term."

To cut costs, cloud punters have a variety of options, including cut-price reserved instances (Amazon), enterprise agreements (Microsoft), being big enough to get a discount if they ask nicely (everyone & dog), managed dedicated gear (Rackspace, SoftLayer, et cetera) or even going in-house either via on-premises gear or some racks in a colocation facility.

Though rentable infrastructure is developing into a sizeable market, as Amazon's recent earnings indicate, this vulture finds it refreshing that the cloud industry is capable of admitting that rented pay-as-you-go VMs are not a panacea. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.