Welcome!

Containers Expo Blog Authors: Elizabeth White, Liz McMillan, Pat Romanski, Gregor Petri, Flint Brenton

News Feed Item

2nd Watch Survey Shows Cloud Price Wars Will Result in Higher Spending

Despite Recent Reductions in the Cost of Capacity, Many IT Directors Said They're Planning to Spend More on Cloud Infrastructure This Year Over 2013, and More Than 70% Said They'll Move More Applications to the Cloud and Do Additional "Experimentation" Gi

SEATTLE, WA -- (Marketwired) -- 05/01/14 -- 2nd Watch surveyed more than 100 IT directors from large and mid-market companies, to understand the impact of recent cloud infrastructure price reductions on their businesses. According to results of the online survey, conducted over a two-week period beginning in mid April, price cuts are driving increased investment and innovation in cloud-based projects. However, despite ongoing price competitiveness among cloud infrastructure providers, a majority (62%) of survey respondents said features and performance were more important than price in deciding which vendor to engage.

The cost of adding cloud infrastructure continues to go down, a trend that is likely to continue. Amazon has cut prices across its cloud offerings by about 34% since October, while Google reduced prices by about 23% in March and 19% in December. Microsoft lowered prices on its cloud service by 32% over the last four months. Cloud infrastructure is an increasingly competitive market driven mainly by the cost, flexibility, security and convenience benefits of being able to "spin up" new cloud instances on a moment's notice.

2nd Watch is a fast-growing player in the enterprise cloud services marketplace. Since 2010 the firm has migrated hundreds of large and mid-market companies to Amazon Web Services. In Q1 2014 alone, 2nd Watch added a half dozen Fortune 500 companies to its client portfolio and increased bookings 400% over Q1 2013.

A majority (80%) of IT directors responding to the 2nd Watch survey reported they were aware of the major price reductions occurring in the cloud infrastructure market, and better than 60% said Amazon offered the best price. Amazon was also cited by a majority of respondents (70%) as having the best price to value, followed by Google (8%) and Microsoft (4%).

Other notable findings from the 2nd Watch Cloud Infrastructure Price Wars survey:

  • 60% of IT directors spent at least $10,000 last year on cloud infrastructure and nearly a quarter spent more than $100,000
  • Almost one quarter of respondents said they'd spend up to 25% more this year on cloud infrastructure while 20% said they'd spend 25-50% more on cloud infrastructure
  • 37% of companies will move more applications to the cloud this year than last year and 35% will do more experimentation with cloud projects
  • 41% of respondents said they monitor cloud pricing changes "all the time," while 42% said they look at their cloud infrastructure bills "occasionally"
  • Nearly 42% of respondents said their cloud infrastructure bill fluctuates 10-20% monthly
  • Companies spent the most on cloud infrastructure between October and December last year (nearly 35%), with the next busiest time reported as January to March (23%)

"The latest pricing changes from Amazon, Microsoft and Google are moving the cloud infrastructure market in a positive direction," said Kris Bliesner, CEO at 2nd Watch. "Cloud infrastructure continues to deliver huge economic and scalability benefits. When was the last time your IT Infrastructure costs decreased after you installed it? With the Cloud this happens all the time and businesses benefit everyday from price cuts. We think 2014 will be an exciting time of innovation and adoption of cloud computing by businesses of all sizes."

About 2nd Watch
2nd Watch is a global leader in building, deploying and managing Amazon Web Services (AWS) based IT operations for enterprise customers. 2nd Watch assists customers in evaluating the economics of moving IT operations into AWS, designs and builds highly reliable and scalable AWS based enterprise IT platforms, and provides software tools and management services that enable enterprises to deploy, manage and optimize cloud based IT operations infrastructure. 2nd Watch has effectively moved over 2MW of enterprise data center capacity into the AWS cloud as part of 300+ platform and data center migrations. 2nd Watch is an AWS Premier Consulting Partner and is headquartered in Liberty Lake, WA with offices in Seattle, San Francisco, and New York. For more information, try the TCO Calculator at tco.2ndwatch.com, email [email protected], visit www.2ndwatch.com or call 1-888-317-7920.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
19th Cloud Expo, taking place November 1-3, 2016, 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. Meanwhile, 94% of enterpri...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 devices - comp...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...