Welcome!

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.

Latest Stories
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
When NSA's digital armory was leaked, it was only a matter of time before the code was morphed into a ransom seeking worm. This talk, designed for C-level attendees, demonstrates a Live Hack of a virtual environment to show the ease in which any average user can leverage these tools and infiltrate their network environment. This session will include an overview of the Shadbrokers NSA leak situation.
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.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
As enterprise cloud becomes the norm, businesses and government programs must address compounded regulatory compliance related to data privacy and information protection. The most recent, Controlled Unclassified Information and the EU’s GDPR have board level implications and companies still struggle with demonstrating due diligence. Developers and DevOps leaders, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by in...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.