We are entering the second wave of cloud computing: The Public Cloud Economics
Most enterprises understand well cloud topologies (virtualization) and privacy levels (private, virtual-private, and public), or simply the different resource types (IaaS, PaaS, or SaaS). Some even embraced pretty sophisticated technologies like cloud bursting – the dynamic relocation of workloads. However, compared to this sophisticated understanding of technology, the understanding the current or even future economic models of cloud computing lags behind.
More than a year ago, Forrester introduced the corporate perspective of cloud economics with James Staten’s report Drive Savings And Profits With Cloud Economics. The major cloud providers surprised us also with many innovative business models, such as Amazon’s AWS Reserved Instance Marketplace last September. As an alternative to the fully flexible on-demand model, customers can also buy a one- or three-year contract for a compute instance and could save up to 60%. However, the risk is that you bought more than you need or simply the wrong instance types. The marketplace allows now selling off these half used contracts to other customers.