Summing Up TCO Considerations – Insight for Providers
Recently-published Saugatuck research provides Saugatuck’s Cloud vendor clients with TCO considerations and suggestions for accelerating Cloud adoption. In addition various factors are explained for users to consider when evaluating potential costs of Cloud offerings. These factors include:
- Average utilization of the Cloud infrastructure
- Economies achievable by large Cloud providers
- List prices versus negotiated discounts for large/aggregated workloads
Our research has shown that users do not consistently consider these factors during evaluations and consequently do not gain an accurate projection of the costs of Cloud offerings.
To gain market share Cloud vendors should not only adopt a competitive pricing structure, but, also become more proactive and informative in assisting IT organizations to perform price evaluations. In addition to providing price estimation models we suggest Cloud vendors take several actions on their websites.
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