Stabilization of Cloud Computing Industry


Cloud Computing is the process of making use of remote servers which are hosted online for storing, managing and processing data instead on a local server or on the personal computer. This is also known as “on-demand computing” that involves shared resources with the help of Internet-based computing; providing data and information to computers or other tech devices when required i.e. whenever they are demanded.

The most popular reference of the term came in 1996 when Compaq-IT based company started using the technology for internal documentation. It was in 2006 that introduced Elastic Compute Cloud due to which the term earned a massive popularization. Since then the method is vastly used in almost every IT based business at different levels. Today, the technology is a common source of dealing with data and information; to the extent which has resulted in a big dip in its pricing.

Present world of Cloud Computing

Latest research reports on Pricing of Cloud have indicated that the average expense on cloud computing for enterprises has fallen by almost 2/3rd its original price since 2014. Hence, the industry insiders view a quick stabilization of the cloud computing business which has already began.

Charges for entry-level has come down by 66% than what it was two years ago. Constant product innovation within the industry and stiff competition among the service providers have been the two major features which have bought about the abnormal pricing decline.

The cost at the starting level for the basic services comes up to a mere $0.12 per hour, hence the pricing has largely narrowed down in the last 24 months and gap between different service providers has started to shrink.

Big players in the market have started to keep an identical price quote for instance Amazon Web Services (AWS) and Microsoft Azure; Google on the other end is particularly concentrating upon innovation along with the similar pricing strategies.

Moreover, the industry will face a tougher span from now to 2020 as the margins are expected to shrink further. The total costs for public cloud computing is further expected to drop by a whopping 14% as the clients will have an overflowing options of service providers.

“Public cloud pricing to fall by 14% between 2015-20-AWS, Microsoft & others to find it tough to price their services”


Cloud computing service companies have started offering analytical services that range to cloud technology for Internet of Things (IOT).

Specific client requirements are largely catered upon in order to cement the clientele; this will also enable service providers in keeping pricing commoditization at bay.

Who is the King?

Under the present scenario, all the research studies point AWS as the dominant player in the industry. The company has the record in product innovation as it has over 500 product innovative features in cloud computing launched since 2008. It is among the first to offer cloud support service that works on IOT applications.