Welcome!

@CloudExpo Authors: Liz McMillan, Elizabeth White, Larry Alton, Pat Romanski, Patrick Hubbard

Related Topics: @CloudExpo, Microsoft Cloud, Containers Expo Blog, Cloud Security, Government Cloud

@CloudExpo: Article

Cloud Economics – Amazon, Microsoft, Google Compared

A Platform Comparison

Any new technology adoption happens because of one of the three reasons:
  1. Capability: It allows us to do something which was not feasible earlier
  2. Convenience: It simplifies
  3. Cost: It significantly reduces cost of doing something

What is our expectation from cloud computing? As I had stated earlier, it is all about cost saving … (1) through elastic capacity and (2) through economy of scale. So, for any CIO who is interested in moving to cloud, it is very important to understand what the cost elements are for different cloud solutions. I am going to look at 3 platforms: Amazon EC2, Google App Engine and Microsoft Azure. They are sufficiently different from each other and each of these companies is following a different cloud strategy – so we need to understand their pricing model.

(A word of caution: this analysis is as per the published data on 20th January, 2010 and texts in green italics are my interpretation)

[Update on Amazon offering as on June, 2011]

Quick Read: Market forces seem to have ensured that all the prices are similar – for quick rule of thumb calculation to look at viability, use the following numbers irrespective of the provider. You will not go too much off the mark.

  • Base machine = $0.1 per hour (for 1.5 GHz Intel Processor)
  • Storage = $0.15 per GB per month
  • I/O = $0.01 for 1,000 write and $0.001 for 1,000 read
  • Bandwidth = $0.1 per GB for incoming traffic and $0.15 per GB for outgoing traffic

However, if you have time, you can go through the detail analysis given below.

Amazon:
  • Overview: You can create one or more instances of a virtual machine for processing and for storage
    • You pay based on time the instances are running and not on how much they are used – if an instance is idle, you still pay for it
    • There are three physically different locations where the facility is available (called availability zones) – US(N. Virginia, N. California) and EU(Ireland)
    • When you either shutdown the machine instance or it crashes for whatever reason you lose all your data
    • It is possible to have a reserve instance (for 1 year or 3 years) for an initial payment and discounted rate of usage – however, I do not think it provides any guarantee against data loss because of machine crash
    • Data storage can be both relational and non-relational
  • Machine Instance: Virtual machine can be of different capacity – Standard(Small, Large, Extra Large), High-Memory(Double Extra Large, Quadruple Extra Large), High-CPU(Medium, Extra Large)
    • Charge for Machine Usage: You are charged for the time you keep the instance of the machine running – the time is calculated in hours, any fraction of hour is taken as full hour
      • Hourly charge vary from $0.085 (Small – Linux – N. Virginia) to $3.16 (Quadruple Extra Large – Windows – N. California)
      • Both Linux and Windows machine instances are supported – Windows machines are about 40% more expensive – other software charges are extra
    • There are separate charges for mapping IP addresses, for monitoring & auto scaling ($0.015 per instance per hour) and load balancing
    • A message queue is available (Simple Queue Service – SQS) but again it has a separate charge – $0.1 to $0.17 per GB depending on the total monthly volume
  • Data Persistence: To persistent data storage you can one of the 3 alternatives – Simple DB, Simple Storage Service (S3) or Relational Database Service (RDS)
    • Simple DB and S3 storage mechanism is not RDBMS – that is you do not have tables therefore you cannot retrieve records through using JOIN
    • RDS is an instance of MySQL – so you can use it like a normal RDBMS
    • Charges for Simple DB: you pay separately for CPU, disk space and data transfer – though up to a limit they are free (25 CPU hours, 1GB data transfer, 1GB of storage)
      • CPU usage calculation is normalized to 1.7 GHz Xeon (2007) processor and works out to $0.14 to $0.154 per hour depending on location
      • Data transfer In is free till June 2010 and charge for transfer Out is between $0.1 to $0.17
        per GB depending on the total monthly volume
      • Actual storage is charger at $0.25 to $0.275 per GB per month – it includes 45 bytes of overhead for each item uploaded
    • Charges for S3: You are charged for disk space, data transfer and number of request made instead of CPU usage – data transfer charges are the same
      • Storage charge varies from $.055 to $0.165 per GB per month making it slightly cheaper than Simple DB but at a higher level of usage (more than 1000 TB)
      • I/O requests are charged separately – you pay between $0.01 to $0.011 per 1,000 write requests and $0.01 to $0.011 per 10,000 read requests – deletes are free
    • Charge for RDS: You pay for storage, I/O request, data transfer and machine instance (Small, Large, Extra Large, Double Extra Large, Quadruple Extra Large) based on usage
      • You pay for RDS instance – charges vary from $0.11 to $3.10 per hour depending on the instance size
      • The storage charge is not pay as you use – you have to decide in advance (5 GB to 1 TB) and the charges are $0.10 per GB per month
      • The is no charge for backup up to the amount of storage you have chosen but you have to pay $0.15 per GB per month for extra backup
      • You pay separately for I/O at $0.10 per 1 million I/O requests

    Google:
    • Overview: Application written in Python or Java can directly be deployed – the implementation is a subset
      • No need to instantiate any virtual machine
      • You are charged on the actual normalized CPU cycles used
      • Storage is only non-relational
      • Charge is calculated on these parameters – bandwidth, CPU, storage, emails send
      • You have free quota for each of these parameters – it is enough for development, testing and small deployment
      • There are limits imposed for peak usage on many different parameters – with daily limits & limits on usage in a burst
      • You will need to rewrite your application to work on Google App Engine – see this
      • Charge for CPU usage: It is calculated in CPU seconds equivalent to 1.2 GHz Intel x86 processor
        • You pay $0.10 per hour of CPU usage for processing requests
        • 6.5 hours of CPU time is free
        • You do not pay for CPU idle time
      • Charge for storage: Only non-relational storage is available
        • You pay $0.15 per GB per month – the size includes overhead, metadata and storage required for indexes
        • It includes data stored in the datastore, memcache, blobstore
        • You pay for CPU usages for data I/O at $0.10 per hour
        • 60 hours of CPU time for data I/O is free
        • Up to 1 GB of storage is freeFAQ page says that it is 500 MB
        • You are charged every day at $0.005 GB per day after subtracting your free quota
      • Charge for bandwidth usage: Inward and outward bandwidth usage is charged at different rate
        • You pay $0.10 per GB for incoming traffic
        • You pay $0.12 per GB for outgoing traffic
        • 1 GB of incoming traffic and 1 GB of outgoing traffic is free
    Microsoft:
    • Overview: Offering has 3 main parts – Windows Azure, SQL Azure and App Fabric
      • Details available on the Microsoft site is more about the vision of the product than about what is implemented here and now.
      • However this document “Introducing Windows Azure” is good
      • It uses Hyper-V for virtualization – it works more like Amazon than like Google
      • There is an introductory offer where the service can be avail for free
      • The development environment is Visual Studio through an SDK
      • The emphasis of creating applications which partly runs in premise
        and partly on cloud
      • Microsoft wants to keep the programming model as much unaltered as possible – see this
      • Charge for CPU usage: It is calculated in CPU seconds equivalent to 1.2 GHz Intel x86 processor
        • You pay $0.12 per hour of CPU usage for processing requests
      • Charge for storage: Only non-relational storage is available
        • You pay $0.15 per GB per month
        • Storage transactions are charged separately at $0.01 per 10,000 transactions
      • Charge for bandwidth usage: Inward and outward bandwidth usage is charged at different rate
        • You pay $0.10 per GB for incoming traffic – rates for Asia are different $0.30 per GB
        • You pay $0.15 per GB for outgoing traffic – rates for Asia are different $0.45 per GB

Looking at the complexity of pricing I see great prospect for anybody who specializes in optimizing application for cloud – unlike traditional applications – any improvement in cloud application and directly be measured in $$$ saved.

More Stories By Udayan Banerjee

Udayan Banerjee is CTO at NIIT Technologies Ltd, an IT industry veteran with more than 30 years' experience. He blogs at http://setandbma.wordpress.com.
The blog focuses on emerging technologies like cloud computing, mobile computing, social media aka web 2.0 etc. It also contains stuff about agile methodology and trends in architecture. It is a world view seen through the lens of a software service provider based out of Bangalore and serving clients across the world. The focus is mostly on...

  • Keep the hype out and project a realistic picture
  • Uncover trends not very apparent
  • Draw conclusion from real life experience
  • Point out fallacy & discrepancy when I see them
  • Talk about trends which I find interesting
Google

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
tom.eberhard 01/25/10 03:58:00 PM EST

From what I've read, Azure offers relational storage in SQL Azure.
Look at these two different links for example.

Please clarify your article.
Sincerely,
Tom Eberhard.

@CloudExpo Stories
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
The last two years has seen discussions about cloud computing evolve from the public / private / hybrid split to the reality that most enterprises will be creating a complex, multi-cloud strategy. Companies are wary of committing all of their resources to a single cloud, and instead are choosing to spread the risk – and the benefits – of cloud computing across multiple providers and internal infrastructures, as they follow their business needs. Will this approach be successful? How large is the ...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 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.
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a mu...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Trying to improve density, lower costs and run applications faster than before? Today, enterprises looking for a secure cloud strategy are increasingly turning to container-based Platform as a Service solutions for on-premises hosted DevOps. In her session at 21st Cloud Expo, Alise Cashman Spence, Offering Manager, Power Systems Cloud Solutions at IBM, will discuss the driving factors behind these cloud trends and how IBM customers are realizing exceptional performance, security and control for ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.