{"id":48395,"date":"2014-11-14T00:00:00","date_gmt":"2014-11-14T00:00:00","guid":{"rendered":"https:\/\/www.techopedia.com\/5-things-to-know-about-cloud-pricing\/"},"modified":"2014-11-13T17:22:07","modified_gmt":"2014-11-13T17:22:07","slug":"5-things-to-know-about-cloud-pricing","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/2\/29104\/trends\/cloud-computing\/5-things-to-know-about-cloud-pricing","title":{"rendered":"5 Things To Know About Cloud Pricing"},"content":{"rendered":"

So, you’ve decided to transition your business to the cloud<\/a>. It’s a big step for many businesses, but it’s only a conceptual one. Once the decision is made, many still have a big question in the way: Now what? While there are many options for conversion and hosting, it’s the pricing behind these different models that often really helps make the decision. And when it comes to the cloud, pricing is a bit, well, cloudy.<\/p>\n

Not only do cloud providers specialize in certain aspects of virtualization, some specialize in small to mid-sized businesses, while others specialize in corporations. These factors can have a big impact on what companies pay. If companies don’t investigate these implications early, they may find their first bill to be an unpleasant surprise. So, if you’re looking to move your company to the cloud, here are five things you should know about cloud pricing first. (For some background reading, check out A Beginner’s Guide to the Cloud: What It Means for Small Business<\/a>.)<\/p>\n

Cloud Vendors Specialize in Different Things<\/span><\/h2>\n

It is important to realize that many providers specialize in different areas of cloud technology. With each specialization, it is up to the client to pick the best solution. For example, if your company is seeking storage<\/a>, you may want a vendor that specializes in this area, rather than in, say, data processing.<\/p>\n

The first thing to do is sit down and ask yourself what your company needs from the cloud. Do you need a development environment? Do you need more storage with less hardware? These questions will lead to the proper provider, and keep you from overspending on your purchase.<\/p>\n

There Is No Standard Measurement<\/span><\/h2>\n

The reason cloud computing prices are hard to compare to one another is because there is no standard of measurement. While some companies can provide better RAM over CPU strength, the standard model is to measure how much processing power a provider can grant your company.
\n That being said, providers measure their CPU output differently. While Amazon uses EC2<\/a> Compute Units (ECUs), which are based off a CPU running at 1 GHz to 1.2GHz, Microsoft measures its standard benchmark at 1.6 GHz, meaning Microsoft\u2019s unit of measurement offers more processing power per unit.<\/p>\n

In the end, it is best practice to realize what each company\u2019s standard of measurement is and compare them accurately. This will provide a better idea of what you will be getting and help you make sense of any price differences based on these units of measurement.<\/p>\n

There Are Different Pricing Models<\/span><\/h2>\n

Along with any other service, there are various models cloud providers use to monetize their service. The three main cloud computing models are:<\/p>\n