Click here to close now.

Welcome!

Cloud Expo Authors: Pat Romanski, Liz McMillan, Bernard Golden, Ian Khan, Elizabeth White

Related Topics: Cloud Expo, Virtualization

Cloud Expo: Blog Post

Cloud Computing Economics - Amazon EC2 vs Terremark v Cloud Express

Cost comparison depends on the use case

The recent announcement of the Terremark Cloud offering has raised significant attention especially because of the competitive pricing and EC2 like features of elastic capacity and hourly charges with no commitment. On the surface the Terremark entry price of $0.036 per hour seems very low compared to Amazon EC2 at $0.10 but it's worth picking a few examples to provide a more apples to apples comparison.

Not included in the comparison is the difference in storage costs which can be small or very significant depending on the circumstance. Amazon provides up to 160 GB of instance storage for a small image or 850 GB for a large included in the hourly cost. If you have only a small instance say 10GB that adds $ 2.50 to the monthly price at Terremark ( @ .25/GB ) however of you needed the 850 GB included in the Amazon Large image that would add $ 212 to the monthly Terremark costs. Also not included is bandwidth costs, however both charge the same $0.17 GB for data transfer out . ( Although Amazon charges $ 0.10/GB for data in vs Terremark $ 0.17 data in ).

Some the bigger differences will more likely depend on how the VMs are utilized. The numbers stated above assume a full month of 24x31 operation. With Amazon EC2 it's possible to save in S3 ( bundle in Amazon terms ) an instance and then shut down ( terminate ) the VM and the billing stops. With Terremark however although you can shut down the VM, the hourly charges do not stop. Only deleting the VM ends the billing, there does not appear to be an option of saving with the hourly charges turned off and allowing a new instance from the saved image to be started at a later time. This appears to be a big advantage for Amazon although I need to learn more about the Terremark offering to fully appreciate the capabilities.

Certainly economics is not the only factor in selecting a Cloud infrastructure provider. Vendor Lock-in and VM portablity often come up as concerns. Security is also a factor in regard to Cloud computing and this was a motivator for Amazons recent Virtual Private Cloud offering which provides a dedicated VPN connection from a customer premise to an isolated Cloud inside the Amazon infrastructure. I also have to admit I was impressed with a recent tour of the Terremark data center in Miami , this place was like a high tech Fort Knox when it came to security. The entire topic of Cloud security is worthy of specialized consideration not covered in this simple comparison. Ease of use is another consideration that is worth evaluating. The Amazon Web Console is limited in function but easy to use plus includes access to many partner and community provided ( including Citrix C3 Lab ) templates that are prebuilt and ready to launch. In Amazon EC2 for example its now possible signup and launch your own XenApp server in as little a 15 minutes.

Terremark also provides a web base console that looks straight forward however I have not used it myself yet. Terramark does not provide the same portfolio of 3rd party templates however they do provide more granularity in the size of VMs and RAM plus they offer multiple versions of Windows Server. As the options for Cloud Computing continue to expand the economic analysis of Cloud vs Premise will extend to Cloud vs Cloud, as Service Providers continue to provide dynamic cloud type offerings.

Cloud Economics Part 1 - Premise vs Cloud vs Colo

More Stories By Chris Fleck

Chris Fleck is Vice President of Mobility Solutions at Citrix Systems. Chris started his career at IBM working across multiple engineering and product organizations leading to Business Unit Exec of the IBM Industrial Computer Group. As a pioneer of new technologies, Chris founded an IBM spin-off to commercialize the initial Server Blade products as CEO of OmniCluster Technologies. At Citrix Chris is responsible for mobilty solutions and alliances. As part of the Citrix CTO Office he is also involved with or leading multiple strategic initiatives at the company. You can follow him on Twitter and his blog at TechInstigator.com

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
menora 09/05/09 06:35:00 AM EDT

Bandwidth costs are what kills the cloud for me. When I can go with a high availability provider like 478east, and get 10TB bandwidth with each dedicated server, why would i pay 1300$/mo just for that bandwidth on Amazon?

Terremark seems even more expensive on the bandwidth side.

@CloudExpo Stories
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at...
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
Deploying and operating cloud technology is difficult and falls outside the core competencies of most organizations. As a result, many on-premises private cloud installations falter, casting doubt on private cloud as a solution in general. Yet private clouds come with a unique set of benefits that continue to drive widespread interest. There must be a better way. This session will give participants a clear roadmap of private cloud implementation challenges and offer actionable ideas for...
Database apps on mobile devices shouldn't stop working when there's limited or no network connectivity. In his session at 16th Cloud Expo, Bradley Holt, a Developer Advocate for IBM Cloudant, will discuss how to bring data stored in a cloud database to the edge of the network (and back again), whenever an Internet connection is available. He will demonstrate techniques for replicating cloud databases with mobile devices in order to build offline-enabled mobile apps that can provide a better,...
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
Docker, Inc., has been included in the list of "Cool Vendors" in the April 21, 2015 report by Gartner, Inc, Cool Vendors in DevOps, 2015. In the report, Gartner notes, “As virtualization and cloud applications grow beyond being single images run on premise to being comprised of multiple tiers that can be run and scaled in a hybrid cloud, new approaches are needed to reduce complexity.” “Docker has gained great traction within the developer community for how efficient it makes the individual de...
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
BlueBox bridge the chasm between development and infrastructure. Hosting providers are taking standardization and automation too far. For many app developers it does nothing but spawn mayhem and more work. They have to figure out how their creations live on a pre-fab infrastructure solution full of constraints. Operations-as-a-Service is what BlueBox does. BlueBox utilizes development tools such as OpenStack, EMC Razor, Opscode’s Chef and BlueBox's proprietary tools give the power to do the unor...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of ...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.