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ConstantContact, MassTLC, NaviNet

Cloud Infrastructure Pricing Webinar – June 4, 2014

Regardless of your
definition, public or private, cloud has moved into the mainstream.
The MassTLC Cloud Infrastructure Pricing Webinar reinforced this reality as
results from the Cloud Infrastructure Pricing Survey were shared and analyzed
by speakers Jim Cuff, Vice President of
Technical Operations at Constant Contact
and Mark Dudman, Senior Vice
President of Product Development at NaviNet.
Conducted by the MassTLC Cloud Cluster
in late 2013, the Cloud Infrastructure Pricing Survey garnered more than 100
responses, ranging from start-ups to long-established companies, and yielded new
insights into cloud pricing amongst respondents. Jim and Mark led listeners through
key findings in the Cloud Infrastructure Pricing survey:
  • 55%
    of respondents are live with at least one cloud project, with 87% of those
    using public cloud.
  • As
    a factor when choosing Cloud services, COST ranked at the top of the list,
    beating out flexibility, uptime, service, security, other, Opex/Capex and Open
    source.
  • Cost
    is also the reason most companies switch to a different provider.
  • The
    public cloud market is becoming more competitively priced, with key players
    such as Microsoft, Google and Amazon implementing significant price cuts.
    Additionally, new services are being added, so while offerings are becoming
    competitively price-wise, there is also pressure for them to remain innovative.
  • The
    speakers discussed that while the low upfront cost and lower risk many
    incentivize many to start on a cloud with a big provider, in the long run, as
    you scale, you are in the opex/high MRC zone. However, cost optimization within
    a cloud provider is often a viable alternative to switching providers in many
    cases.
  • Even
    with competitive pricing, Mark noted that many companies experience a bit of a
    shock when they receive their first bill, but with diligent effort, companies
    can see cost savings. Jim compared cloud services to turning off the lights
    when leaving a room – if companies manage their environment by turning off
    services when they are not needed, that can yield cost savings.
  • Vendor
    consolidation is beginning to occur more rapidly to support growth, with 26%
    having switched cloud providers. While Amazon remains at the top of the market
    and has done a phenomenal job at true elasticity and consistently using innovation
    to solve consumers’ problems, Mark noted that it’s expected Amazon is likely to
    lose some market share in the coming year, and that significant shifts in cost
    are expected as the market continues to evolve.
  • Positively,
    85% of respondents plan to increase their cloud expenditures over the next
    year, a finding which compares with national trends and expectations.

For the complete findings, please see
the MassTLC Cloud Cluster Survey presentation.
If you are a MassTLC members who would like to access the
recording of the Cloud Infrastructure Pricing webinar, please contact
Margot
Rodger
.
We thank speakers Jim Cuff of Constant Contact and Mark Dudman of
NaviNet for their participation in this webinar, as well as the MassTLC Cloud Cluster
Sponsors:  Internap, Digital Realty and Logi Analytics. As always, we
appreciate your continued support.
Please continue to check out the Cloud
Cluster main page
for ongoing updates and information.

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