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The rising cost of cloud: What can end users do about it?

Why does the price of public cloud services continue to rise, and what can end users do about it?

Originally promised as a cheap, easy to access, and powerful hosting solution, over the past decade, public cloud has become the go-to method for many organisations looking to build, host, and scale applications or services.

However, in recent months and years, the cost of cloud has grown massively, so much so that Ofcom recently released an interim report slating the pricing strategies and monopolisation tactics that many hyperscalers use. Data egress fees, complex pricing models and security concerns have made public could bills more expensive and less predictable, at a time when businesses are looking to limit their costs.

For businesses that may now be looking for alternative hosting solutions to cloud, traditional colocation facilities present a viable method for many.

A virtual cloud with various symbols inside relating to social media and work.

Why is cloud so expensive?

There is no getting around the huge levels of growth that cloud has had over the past decade. As more and more businesses migrate to the cloud, costs for each individual user have increased, which is partly a self-fulfilling cycle. With an ever-increasing number of users, cloud providers are continuously having to expand their infrastructure, the property that houses it, and the energy usage that fuels it, leading to increased costs that are ultimately passed on to the end users.

The exponential growth of data being generated, processed, and stored on public cloud platforms is another contributing factor to the increasing costs. As businesses accumulate more data, they face higher storage costs and, in some cases, increased data egress fees.

Egress fees are charges associated with transferring data out of a public cloud environment, and these fees can become substantial, especially for data-intensive applications or businesses with significant data transfer needs. Indeed, egress fees are commonly cited as incredibly difficult to predict, and can result in vendor lock in for many. Many businesses may continue to pay exorbitant prices for storage, out of fear of not knowing how costly an egress charge would be.

As suggested above, public cloud pricing models are often complex and difficult to navigate. Many providers offer multiple service tiers, with varying levels of resources and features, making it challenging for organisations to accurately predict and manage their cloud costs. Additionally, cloud providers regularly update their pricing structures and add new services, making it even more challenging for businesses to keep track of expenses and optimise their usage. The fact there is a whole sector of businesses aimed at predicting the monthly cost for different hyperscalers is a testament to how opaque these pricing models are.

With the rise in cyber threats and an increased focus on data privacy, public cloud providers have been investing heavily in advanced security measures. Storing huge swathes of data from countless organisations makes public cloud providers optimum targets for bad actors. While security measures are needed to combat these threats and to protect users' data, they also contribute to the rising costs of cloud services.

Colocation - the best alternative

Colocation facilities can avoid these common factors behind the rising cost of cloud. Not being connected to an expansive internal network, or having to continuously scale the infrastructure means there is not the same need for investment to improve resilience and meet demand.

At ServerChoice, we take this a step further. As we're an independent organisation, we're not beholden to the corporate tactics that dictate the pricing strategies of many public cloud services, so have always prioritised a fair price. We're able to store your data securely, with lightning fast connectivity, for a predictable and cost-effective monthly bill.

A growing number of our customers are coming home from the cloud. Are you considering the move too? Learn more about our colocation services can do for you here:

Some of our customers

  • Deutsche Telekom UK - ServerChoice Customer
  • Euroffice - ServerChoice Customer
  • VisitBritain - ServerChoice Customer
  • Konica Minolta - ServerChoice Customer
  • Formula One Autocentres - ServerChoice Customer
  • Seajacks - ServerChoice Customer

It's vital for us that we achieve the highest level of uptime and ServerChoice have consistently delivered a service that meets the demands of our organisation.

SCDC provide excellent levels of skill within their team. They took me as a customer tremendously seriously and continue to do so after the PO and cheques have been signed.

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