Price Comparison of Azure, AWS, and Google Cloud
Comparing cloud service prices is no easy task, and apples and pears are too often compared because cloud providers offer different pricing models, unique discounting options, and frequent price reductions. . Right, which presents itself as a sort of cloud services broker, has published a study that offers analysis in detail which providers have the lowest cost options for compute instances and under what circumstances. It compares three major offers of public cloud services and presents results that can also be used to evaluate other offers.
The primary refresh method for compute resources on AWS is Reserved Instances (RI). IRs are not real examples, but rather reduction coupons that can be applied to instances that meet certain criteria (area of availability of the region, family of instances and operating system). You get the discount in exchange for making a one-year or three-year commitment with the longer commitment giving a higher discount. If you also pay for some or all of your pre-paid usage, the rebate becomes more important. Convertible ROs are a new type of 3-year IR that gives you a smaller discount, but gives you the flexibility to move the rebate between different instance families for the duration of the IR.
Rebates vary from 24 to 75% depending on the term IS, the type of instance and the region. Often 1 year No Upfront IR is a good starting point, and we used those from our cloud comparisons. Rightscale recommends taking precautions when purchasing a 3-year IR, as usage can change significantly over such a period. Although convertible ROs can accommodate new instance types, we see in the table below that convertible ROs offer only an additional 5-6 percent discount compared to 1 year RI standard while enclosing you for 3 years instead of 1.
Recommendation: If the company does not use IR, it will pay the highest possible price for each instance. The cloud cost management strategy should define the desired IR coverage level. Targeting 80-90% coverage for environments with little variability, 30-50% coverage may be appropriate for environments with significant variability.
The main approach to getting discounts on Azure is Microsoft Enterprise Agreement (EA). EAs offer discounts of 15 to 45% depending on the level of use that the company engages in. In the table below, Rightscale retained a 30% discount as the midpoint in the comparisons.
Google Cloud provides the simplest approach to saving on computing resources by using Sustained Use Reduction (SUD). The SUD, which occurs automatically and does not require initial commitment, gives a discount on each monthly bill based on the percentage of time that instances in a certain family were running during the month. Once the cases have been executed for 25% of the month, the price goes down to 80% of the demand (a reduction of 20%), and when one 50%, the discount increases by 20%. Therefore, instances running 100% of the time during the month will get a maximum of 30% off.
The table below shows a quick comparison of the three offers. To go into more detail, read the article by Rightscale ( AWS vs. Azure vs. Google Cloud Pricing: Compute Instances ).