Sony Pixel Power calrec Sony

Shocking Cloud Pricing Trends and How it Can Make Cloud 700% More Expensive

17/11/2021

I was really shocked when looking at calculations about the cost of on-prem vs cloud. Let me explain.

Since 2015 the price of AWS $/GB standard tier has been approx. $0.023 - that's six years without significant price change.

And this is despite the underlying cost of HDDs / TB falling pretty much steadily:

Other large cloud storages have similarly held their pricing in the face of underlying hard drive costs remaining static. So what's going on here? Why haven't cloud costs been reduced in the period?

The True Cost of a Cloud Service Of course, the cost of the HDD isn't the only cost for a service provider, some other costs include:

Networking including for some services bandwidth

Professional Services

Rack Hosting

Insurance + Legals

Energy

But even so, I can't help but ask the question why a cost that was regularly falling in prior years (e.g., AWS standard tier pricing was once over 600% more expensive than in 2015) has been stuck in the mud.

What About Lower Cost Storage Tiers? Of course, one tactic employed by some cloud services has been to introduce lower-cost storage tiers, perhaps with lower levels of data redundancy or lower speeds of access available. That's all well and good, but it doesn't really answer why the standard pricing has stuck.

Why You Should Care versus On-Prem When considering whether to host yourself (to buy on-prem or use a private cloud) a key consideration is cost and if the cost of cloud isn't falling whereas the cost of on-prem is, then there is a very strong argument that on-prem might be a better option.

E.g., take a data store that will rise in size from 1PB to 5PB over 5 years, growing 1PB per annum.

If the cloud system costs $276k per annum per PB (based on $0.023 / GB PCM), then year 1 = $276k and year 2/2PB = $552k etc. Over 5 years, ending up with 5PB the total cost comes to $4,140,000 (plus egress fees, but let's ignore that for now).

Let's compare that to on-prem where 1PB = $169k to buy. If the on-prem system is scalable over time (as per MatrixStore from Object Matrix), and the cost of that scaling falls by 20% per annum as HDD prices fall then the total cost over 5 years and ending up with 5PB comes to $568,110.

Yes, you read that correctly:

Cloud = $4.1m

On-prem = $568k

Of course, a TCO calculation will look at other factors such as energy and hosting but even so, the difference is perhaps too significant to ignore if you have a growing media store.

Why Isn't Cloud Pricing Falling then? What we are seeing, I believe, are a combination of factors that are affecting cloud pricing. First of all, I think it is natural for vendors of cloud to add in services and underlying costs that need to be reflected in the price. But increasingly the casual buyer of the service may end up paying for something that just isn't required. For instance, do you really need worldwide distribution of data with caching, e.g., in China? If not then you may be paying for capabilities that you just will never use.

Secondly, there is a suspicion of lock-in. We've seen it over and over where large vendors start to get greedy; they have their customers and can make more money by holding prices for their locked-in customers rather than by being ultra-competitive against an open market. Third, the complexity of large scale cloud solutions is enormous and this cost is being passed on.

OM Note Please note that the calculations made are approximate and take into account only the headline numbers. We'd encourage everyone to make their own calculations. Please also note that we supply both on-prem and cloud solutions - we are pro-cloud! - but are also strong advocates of open markets, competitive pricing and people buying the appropriate solution for their needs.
LINK: https://object-matrix.com/shocking-cloud-pricing-trends-and-how-it-can...
See more stories from matrixstore

More from Matrixstore Quattro Object Matrix Ltd

14/12/2021

Security Notice Apache Log4j2

The following information provides a security update for all MatrixStore customers regarding Apache Log4j2. In December 2021, a remote code execution vulnerab...

29/11/2021

Keeping Content Close - Wherever it's Stored

Keeping Content Close - Wherever it's Stored The move to the cloud continues to gather pace across the media industry. The pandemic has forced organisatio...

23/11/2021

Newsbridge and Object Matrix Partner to Optimize Cloud-based Archive Workflows

23rd November 2021, Paris & Cardiff Object Matrix, the leading provider of object storage solutions and media-focused cloud platforms to the media industry, h...

17/11/2021

Shocking Cloud Pricing Trends and How it Can Make Cloud 700% More Expensive

I was really shocked when looking at calculations about the cost of on-prem vs cloud. Let me explain. Since 2015 the price of AWS $/GB standard tier has been a...

09/11/2021

Meet The Team! Employee Spotlight: Global Sales Engineer, Mark Habberfield

Welcome to the next instalment of our Employee Spotlight Series! The global pandemic lockdown restrictions have prevented us from doing what we love the most - ...

03/11/2021

5 Top Tips to Remedy Bothersome Workflows

Technology has evolved, and content consumption is exploding but are you still stuck using technology from the 90s and manual processes to support on demand wor...

29/10/2021

Object Matrix co-exhibiting at SATIS 2021

Object Matrix will be co-exhibiting at this year's SATIS show, 9th and 10th November in Paris (stand C7). From production to distribution of content SATIS ...

26/10/2021

Doghouse Post Production Ltd transforms their media storage with MatrixStore Cloud

Doghouse Post Production Ltd transforms their media storage with MatrixStore Clo...

20/10/2021

Are you Cloud First rather than Cloud Smart?

Store, Regret, Repeat The still-fresh outage of Whatsapp, Facebook and Instagram gave a timely reminder of what can happen when so many are dependent on so few....

11/10/2021

Meet The Team! Employee Spotlight: Office & HR Manager, Gemma de Clerck

With most of us still working from home due to the global pandemic lockdown restrictions, we recently launched our employee spotlight series. Without further ad...

08/10/2021

Irresistible Studios Signs Up to MatrixStore Cloud Archive

Object Matrix proudly announces that creative production house, Irresistible Studios has migrated its archive to MatrixStore Cloud. Irresistible Studios is a gr...

08/10/2021

Object Matrix Scoops the Software Defined Storage Vendor of the Year Award

Object Matrix named Software Defined Storage (SDS) Vendor of the Year at the Storage Awards 2021 After what has felt like one of the most turbulent times in o...

22/09/2021

Atlantis Tlvision Triples MatrixStore On-Prem Object Storage Footprint

Atlantis T l vision Triples MatrixStore On-Prem Object Storage Footprint After 5-years of benefitting from operational efficiencies and increased collaboration ...

22/09/2021

Atlantis Tlvision triple son parc de stockage objet MatrixStore On-Prem

Atlantis T l vision triple son parc de stockage objet MatrixStore On-Prem Atlantis T l vision tend aujourd'hui la capacit de son stockage objet MatrixStor...

09/09/2021

Lucky Number 7 - Category Nominations for the Storage Awards

The past year has thrown up some extraordinary challenges for the media industry, which has had to adapt at an even greater pace than usual. This makes it an ev...

08/09/2021

Meet The Team! Employee Spotlight: Head of Cloud Sales, Peter Watling

Welcome to our Employee Spotlight Series! The global pandemic lockdown restrictions have prevented us from doing what we love the most - face to face meetings a...

08/09/2021

Does Storage Cost (TCO) Matter to Anyone Anymore or is it just all about Cloud?

Object Matrix used to market MatrixStore, our on-prem object storage / private cloud solution, using arguments around total cost of ownership (TCO) to our advan...

08/09/2021

Meet The Team! Employee Spotlight: Head of Development, Gareth Tucker

Welcome to the Second Instalment of our Employee Spotlight Series! The global pandemic lockdown restrictions have prevented us from doing what we love the most ...

02/08/2021

Which Cloud Storage Personality Are You?

Based on the topics discussed in the Multi-Cloud Article, it is clear that the choice of cloud storage mix will be based on the requirements placed on the data ...

28/07/2021

How Covid is Driving the Adoption of Cloud

Cloud adoption has been in motion for some time now. The pandemic has now made remote access to content much more of a necessity. With cloudification increasing...

22/07/2021

Media sector in Cardiff Capital Region to benefit from 50m funding

media.cymru will make the region a global hub for media innovation and production. Object Matrix is delighted to be a member of the media.cymru Consortium which...

17/09/2020

Extensis & Object Matrix Provide Solutions for Corporate Media Environments

-- Extensis and Object Matrix Provide Integrated Archive Solutions for Regulated Corporate Media Environments Object Matrix (https://object-matrix.com/) and Ex...

17/09/2020

Object Matrix in Conversation with Intersport

-- Object Matrix: In Conversation with Intersport In 2019, Chicago based creative agency Intersport, implemented MatrixStore, the media focused private cloud s...

15/09/2020

Fortium Technologies Solution Brief

-- Fortium Technologies Solution Brief Our Media Focused Hybrid Cloud Storage platforms meet the tactical and strategic needs of many stakeholders and bring ...

09/09/2020

Exploiting Video Archives

-- Exploiting Video Archives Pre & Post COVID If you would like to learn more about how to exploit your media archives, and how that can be done during the glo...

09/09/2020

Is Remote Working Putting Your Media at Risk?

Companies across the globe have had to adapt to this new world of ours at a rapid pace. The way we socialise, the way we shop, and of course, the way we work ha...

26/08/2020

Could Rushes be the Key to Disproving Deep Fake Video?

-- Could Rushes be the Key to Disproving Deep Fake Video? A recent article in the Guardian newspaper raised the possibility of footage on the Jeremy Kyle show ...

17/08/2020

DPP Launches Project Supporting Media Industry Recovery

-- DPP Launches Project Supporting Media Industry Recovery The DPP, the media industry's business network, has today revealed that its next major research ...

12/08/2020

3 Problemas de Almacenamiento Que Sufren las Emisoras de Televisin

Una Cadena. M ltiples Proveedores. Durante nuestros 17 a os trabajando con cadenas como BBC, ITN, NBC, TV Globo y France T l visions, hemos identificado 3 pro...

06/08/2020

MatrixStore Cloud Integrated with 3rd Party Solutions

Cardiff, UK, Wales 5th August 2020 Object Matrix has announced it has validated a number of 3rd party integrations against its managed service cloud storag...

23/07/2020

Sports Producers More Productive with Object Matrix & Vizrt

-- Sports Producers more productive with Object Matrix & Vizrt -- Viz One And Object Matrix Storage Streamline Workflows For Sports Channel beIN Sports' Ra...

22/07/2020

3 Problemas de Almacenamiento Que Sufren las Empresas de Broadcasting

Una Cadena. M ltiples Proveedores. Durante nuestros 17 a os trabajando con cadenas como BBC, ITN, NBC, TV Globo y France T l visions, hemos identificado 3 pro...

15/07/2020

3 Archive Challenges All Broadcasters Face

One Broadcaster. Multiple Vendors. During our 17 years working with broadcasters such as the BBC, ITN, NBC, TV Globo and France Televisions, we have identifie...

09/07/2020

How To Handle Archives Of Sports Content

-- How To Handle Archives Of Sports Content When COVID-19 restrictions started being introduced, the cancellation of sports fixtures was greeted with respect f...

08/07/2020

Object Matrix Launches MatrixStore Cloud

-- Object Matrix Launches MatrixStore Cloud Cardiff, UK, 8th July 2020 - Object Matrix has launched MatrixStore Cloud. Its managed storage service was formerly...

02/07/2020

5 Piges viter avant de migrer vers un Cloud Public

Dans le contexte actuel, plusieurs sujets portent r flexion : le travail distance, la continuit op rationnelle ou lacc s aux contenus archiv s en libre-ser...

01/07/2020

Object Matrix Disrupts Storage Market with Innovative Support Offerings

-- Object Matrix Disrupts Storage Market with Innovative Support Offerings -- Cardiff, Wales, 1st July 2020 Object Matrix has announced a range of groundbreak...

16/06/2020

Object Matrix Supports Adobe Productions Workflow

-- Object Matrix Now Supports Adobe Productions Workflow in Premiere Pro Cardiff, Wales, 16th June 2020 - Object Matrix today announced its solutions now suppo...

08/06/2020

5 Gotchas For Moving to Public Cloud

With the rush to provide remote working, business continuity and the ability for creative professionals to self-serve content from the archive, the second wave ...

04/06/2020

Cloud Meets Dark Media : Waiting to Suck your Budget Dry

-- Cloud Meets Dark Media : Waiting to Suck your Budget Dry -- Definition: Dark Media Media that is unindexed, unanalysed and is basically unsearchable. It ex...

20/05/2020

La Continuit Oprationelle Grce au Libre-Service

-- La Continuit Op rationelle Gr ce au Libre-Service Gestion de contenus et continuit op rationnelle, gr ce au libre-service Maintenant plus que jamais, le...

18/05/2020

Embrace Solution Brief

-- Embrace Solution Brief Our Media Focused Hybrid Cloud Storage platforms meet the tactical and strategic needs of many stakeholders and bring economic and ...

06/05/2020

Object Matrix Announces Withdrawal from IBC

-- Object Matrix Announces Withdrawal from IBC Object Matrix has announced that it will not exhibit at this year's IBC in the light of the current global s...

15/04/2020

Object Matrix and Signiant Integrate Solutions

-- Object Matrix and Signiant Integrate Solutions to Deliver Content Anywhere Object Matrix (Object-matrix.com) and Signiant (https://www.signiant.com/) have ...

09/04/2020

On your Marks, Get Set Oh?!

Back in 2007-2008 the Creative Writers strikes in the USA caused many productions to be halted meaning TV schedules filled up with repeats and a new era of TV p...

09/04/2020

Object Matrix Self Serve Chronicles

-- Object Matrix Self Serve Chronicles -- If you want to spend 5 minutes avoiding the fridge then watch this video. If you need remote access to content watch...

04/04/2020

Not all Pyramids will last thousands of years

-- Don't Stop the Work at the Top At the top of the food chain in the media and entertainment ecosystem are the broadcasters and streaming companies. These...

04/04/2020

MaaS Datasheet

-- MaaS Datasheet Our Media Focused Hybrid Cloud Storage platforms meet the tactical and strategic needs of many stakeholders and bring economic and operatio...

02/04/2020

YOUR BEER ROUNDtable: Discussing The Ultimate Hybrid Stack

-- YOUR BEER ROUNDtable: Discussing The Ultimate Hybrid Stack -- Cardiff, Wales, New York, USA, 2nd April 2020: Object Matrix and CineSys-Oceana announce tha...

02/04/2020

Object Matrix Good News Friday

-- Object Matrix Good News Friday! Welcome to the first Good News Friday video series! Every Friday correspondents from all over the globe will send in their...