Posts Tagged ‘Pricing Plans’


How to Predict Elastic Cloud Computing Costs for Your Organization

Tuesday, March 6th, 2012 by

Every day I talk with customers about the benefits of cloud computing—everything from faster provisioning of resources, to reduced management overhead, to flexible workload management. The benefits are becoming well-known; however, when it comes to managing an IT budget, these benefits can also present a challenge. Unlike virtual compute, network, and storage resources, budgets aren’t elastic. Your company’s CFO doesn’t want to see that your nimble IT organization is spending $100 today and $1,000 tomorrow. He doesn’t care that you’ve matched IT resources to your customer’s demand curve. No my friend, what your CFO wants is predictability. Fortunately for you, that’s a challenge we’ve solved with our improved plan pricing for cloud servers.

To demonstrate how this new plan works, let’s build a simple model where your usage changes from one month to the next. In month 1, you need three servers for 400 hours, one server for 80 hours, and two servers for the entire month. For simplicity’s sake, we’ll assume all servers are 1 GB and 1 core. Using Pay-As-You-Go pricing, this configuration of servers on GoGrid would cost you $0.12 for each hour an individual server is running. The math for the first month’s configuration looks like this:

3 X 1 GB server x 400 hours = 1,200 hours used
1 x 1 GB server x 80 hours = 80 hours used
2 x 1 GB server x 730 hours = 1,460 hours used

The total hours used for all servers = 2,740 hours at a rate of $.12 per hour.

Total Pay-As-You-Go cost for month 1 = $328.80.


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