CAPEX or OPEX The effect of hybrid multicloud on storage infrastructure pricing

RON RIFFE | November 4, 2019

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The dominant pricing approach today for on-premises storage is CAPEX. But that is changing. The economics of cloud consumption-based pricing is influencing on-premises purchases. According to IDC[1], “A perfect utility-based model would be the equivalent of how consumers view their electric or heating service provider  you pay only for what you use, with monthly or quarterly billing that offers guaranteed service levels and predetermined pricing.” Of course, many of today’s clouds do not meet that standard. In addition to charging for the amount of capacity consumed, cloud storage providers also include charges for the number of accesses (commands like PUT, GET, COPY, SELECT, POST, LIST, etc.) and for amount of data transferred out of the cloud, referred to as “egress.”

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