Changing Cloud Prices

After years of competitive price cuts within the cloud computing industry, Microsoft is beginning to increase prices on their cloud computing infrastructure, and IBM may be following Microsoft’s lead. This change has been cited due to the current economic disaster in Greece. Regions that are likely to be affected by the price increase are Australia and Europe, excluding the United Kingdom.

Microsoft said in a statement, “We always evaluate current market conditions, the increased product value for a customer, customer deployment scenarios and other factors when determining pricing for our products and services. Microsoft is committed to sharing pricing and licensing updates with our partners to ensure they and our customers are prepared and able to evaluate their options. Customers should speak with a Microsoft partner to learn more.”

A spokesman for Microsoft also commented, “In light of the rapid evolution of the market for cloud services and evolving local dynamics, we can confirm that as of August 1 2015, we will adjust prices for most enterprise cloud products within the EU/European Free Trade Association region. The changes will not affect existing annuity volume licensing agreements but will apply to most enterprise cloud products under new or renewing contracts.”

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IBM has also confirmed that it is changing its SoftLayer cloud pricing, claiming it is a price cut. However, a customer using entry-level Virtual Server Instance in SoftLayer paid $35 per 5TB of outbound bandwidth, that rate has increased to $615 per 5TB of bandwidth.

While competitive price cuts in the cloud market used to be the norm, a trend of increasing cloud costs may be on the rise.

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Erin M
Erin M
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