Welcome!

Cloud Expo Authors: Harry Trott, Carmen Gonzalez, Elizabeth White, Kevin Benedict, Yeshim Deniz

Related Topics: Cloud Expo, .NET, Virtualization, Security, GovIT

Cloud Expo: 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
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In their General Session at 15th Cloud Expo, Phil Jackson, Development Community Advocate at SoftLayer, and Harold Hannon, Sr. Software Architect at SoftLayer, to discuss how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Come learn about what you need to consider when moving your data to the cloud. In her session at 15th Cloud Expo, Skyla Loomis, a Program Director of Cloudant Development at Cloudant, will discuss the security, performance, and operational implications of keeping your data on premise, moving it to the cloud, or taking a hybrid approach. She will use real customer examples to illustrate the tradeoffs, key decision points, and how to be successful with a cloud or hybrid cloud solution.
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, will discuss how a user-centric Application Performance Management solution can help inspire your users with every application transaction.
With the explosion of the cloud, more businesses are transitioning to a recurring revenue model to generate reliable sales, grow profits, and open new markets. This opportunity requires businesses to get to market quickly with the pricing and packaging options customers want. In addition, you will want to take advantage of the ensuing tidal wave of data to more effectively upsell, cross-sell and manage your customers. All of this is possible, but only with the right approach. At 15th Cloud Expo, Brendan O'Brien, Co-founder at Aria Systems and the inventor of cloud billing panelists, will lead a panel discussion on what it takes to launch and manage a successful recurring revenue business. The panelists will offer their insights about what each department will need to consider, from financial management to line of business and IT. The panelists will also offer examples from their success in recurring revenue with companies such as Audi, Constant Contact, Experian, Pitney-Bowes, Teleko...
Planning scalable environments isn't terribly difficult, but it does require a change of perspective. In his session at 15th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will broaden your views to think on an Internet scale by dissecting a video publishing application built with The SoftLayer Platform, Message Queuing, Object Storage, and Drupal. By examining a scalable modular application build that can handle unpredictable traffic, attendees will able to grow your development arsenal and pick up a few strategies to apply to your own projects.
The cloud provides an easy onramp to building and deploying Big Data solutions. Transitioning from initial deployment to large-scale, highly performant operations may not be as easy. In his session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, will discuss the benefits, weaknesses, and performance characteristics of public and bare metal cloud deployments that can help you make the right decisions.
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Is your organization struggling to deal with skyrocketing volumes of digital assets? The amount of data is growing exponentially and organizations are having a hard time managing this growth. In his session at 15th Cloud Expo, Amar Kapadia, Senior Director of Open Cloud Strategy at Seagate, will walk through the essential considerations when developing a cloud storage strategy. In this discussion, you will understand the challenges IT is facing, why companies need to move to cloud, and how the right cloud model can help your business economically overcome the data struggle.
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud – not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, will discuss the six key steps to justify and execute your MCA cloud migration.
The 16th International Cloud Expo announces that its Call for Papers is now open. 16th International Cloud Expo, to be held June 9–11, 2015, at the Javits Center in New York City brings together Cloud Computing, APM, APIs, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to build reliable, affordable and scalable hybrid cloud storage solutions. Cloudian actively partners with leading cloud computing environments including Amazon Web Services, Citrix Cloud Platform, Apache CloudStack, OpenStack and the vast ecosystem of S3 compatible tools and applications. Cloudian's customers include Vodafone, Nextel, NTT, Nifty, and LunaCloud. The company has additional offices in China and Japan.
SYS-CON Events announced today that TechXtend (formerly Programmer’s Paradise), a leading value-added provider of server and storage virtualization, and r-evolution will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TechXtend (formerly Programmer’s Paradise) is a leading value-added provider of software, systems and solutions for corporations, government organizations, and academic institutions across the United States and Canada. TechXtend is the Exclusive Reseller in the United States for r-evolution
Every healthy ecosystem is diverse. This is especially true in cloud ecosystems, where portability and interoperability are more important than old enterprise models of proprietary ownership. In his session at 15th Cloud Expo, Mark Baker, Server Product Manager at Canonical/Ubuntu, will discuss how single vendors used to take the lead in creating and delivering technology, but in a cloud economy, where users want tools of their preference, when and where they need them, it makes no sense.
The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss this shifting dynamic with an example of a top European Telco provider. Find out how they are leveraging the power of acloud-based consumption model services to offer more value to the mass market and enable a new revenue model that embraces the true meaning of the Third Industrial Revolution.
The emergence of cloud computing and Big Data warrants a greater role for the PMO to successfully manage enterprise transformation driven by these powerful trends. As the adoption of cloud-based services continues to grow, a governance model is needed to orchestrate enterprise cloud implementations and harness the power of Big Data analytics. In his session at 15th Cloud Expo, Mahesh Singh, President of BigData, Inc., to discuss how the Enterprise PMO takes center stage not only in developing the appropriate governance model but also in collaborating with key stakeholders to ensure a successful transformation.
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research data, war stories, case studies, and recommendations.