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Lower Prices Drive New Cloud Projects, Channel Opportunities

Lower Prices Drive New Cloud Projects, Channel Opportunities Cloud Spending in 2013 37% of respondents spent $10,000 to $100,000 on cloud infrastructure last year, 23% said they spent $100,000 to $1 million, and 33% spent less than $10,000. Higher Spending in 2014 Almost one-quarter of respondents expect to spend up to 25% more this year […]

Written By: Gina Roos

May 7, 2014

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Lower Prices Drive New Cloud Projects, Channel Opportunities

Cloud Spending in 2013

37% of respondents spent $10,000 to $100,000 on cloud infrastructure last year, 23% said they spent $100,000 to $1 million, and 33% spent less than $10,000.

Higher Spending in 2014

Almost one-quarter of respondents expect to spend up to 25% more this year on cloud infrastructure while 20% said they would spend between 25% and 50% more.

Pricing Savvy

Nearly 82% of respondents said they were aware of the price cuts in the cloud infrastructure market.

Moving to the Cloud

Thanks to lower pricing, 37% of companies will move more applications to the cloud this year, compared with last year and 35% will experiment with cloud projects they wouldn’t have tried otherwise.

Price Leader

61% of respondents said Amazon offered the best pricing for the cloud. Other leading cloud infrastructure companies fell behind. Only 8% said Google offered the best pricing followed by Rackspace (6%) and Microsoft (5%).

Monitoring Price Changes

41% of respondents said they monitor cloud price changes closely while 42% said they review their cloud infrastructure bills occasionally. Others aren’t interested (10%) or never review their bills (7%).

Fluctuating Bills

42% of respondents said their cloud infrastructure bill fluctuates 10% to 20% monthly.

Budget Buster

33% of respondents said they have exceeded their monthly budget for cloud infrastructure; 22% said they have done this two or three times a year; 10% said they have exceeded the budget at least once a quarter.

Product Leader

Amazon comes out on top in terms of value: 70% of respondents said Amazon offered the best cloud product relative to price. Falling far behind were Google (8%), Microsoft (4%), and Rackspace (3%).

Performance Over Price

62% of respondents said features and performance are more important than pricing. Only 17% said pricing is most important.

Lower Prices Drive New Cloud Projects, Channel Opportunities

Gina Roos

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