{"id":10801,"date":"2010-08-23T08:52:15","date_gmt":"2010-08-23T08:52:15","guid":{"rendered":"https:\/\/aidanfinn.com\/?p=10801"},"modified":"2010-08-23T08:52:15","modified_gmt":"2010-08-23T08:52:15","slug":"google-exec-questions-the-cost-of-utility-cloud-computing","status":"publish","type":"post","link":"https:\/\/aidanfinn.com\/?p=10801","title":{"rendered":"Google Exec Questions The Cost of Utility Cloud Computing"},"content":{"rendered":"<p>I just read a <a href=\"http:\/\/www.theregister.co.uk\/2010\/08\/21\/gill_on_amazon_ec2\/\" target=\"_blank\">story<\/a> on The Register where a Google executive says that it makes no financial sense to use utility based cloud computing services such as Amazon or Azure.&#160; I\u2019ve been saying this for 2 years.&#160; I\u2019m out of the cloud business and have no vested interest any more and I still say this.<\/p>\n<h4>Unpredictable Costs<\/h4>\n<p>Let\u2019s forget the certain people out there who claim that heaven resides in an Amazon data centre and that the costs are predictable.&#160; The truth is that the only thing predictable about your end of month bill will be that you\u2019ll have no idea what it will be.<\/p>\n<p>Here\u2019s Amazon E2C <a href=\"http:\/\/aws.amazon.com\/ec2\/pricing\/\" target=\"_blank\">pricing<\/a> (Ireland data centre):<\/p>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>\n<p><b>Standard On-Demand Instances<\/b><\/p>\n<\/td>\n<td>\n<p><b>Linux\/UNIX Usage<\/b><\/p>\n<\/td>\n<td>\n<p><b>Windows Usage<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Small (Default)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.095 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.12 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Large<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.38 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.48 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Extra Large<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.76 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.96 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>High-Memory On-Demand Instances<\/b><\/p>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Extra Large<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.57 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.62 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Double Extra Large<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$1.34 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$1.44 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Quadruple Extra Large<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$2.68 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$2.88 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>High-CPU On-Demand Instances<\/b><\/p>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Medium<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.19 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.29 per hour<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Extra Large<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.76 per hour<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$1.16 per hour<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&#160;<\/p>\n<p>OK \u2026. not so bad so far.&#160; You can tell how many hours there are in a month and can budget for that.&#160; Don\u2019t be fooled.&#160; That\u2019s just the start of it.<\/p>\n<p>Here\u2019s the bandwidth-out costs (starting in November 2010):<\/p>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>\n<p><b>Data Transfer Out<\/b><\/p>\n<\/td>\n<td>\n<p><b>US &amp; EU Regions <\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>First 1 GB per Month<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.00 per GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Up to 10 TB per Month<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.15 per GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Next 40 TB per Month<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.11 per GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Next 100 TB per Month<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.09 per GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Over 150 TB per Month<\/p>\n<\/td>\n<td valign=\"top\">\n<p>$0.08 per GB<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&#160;<\/p>\n<p>Do you know how much bandwidth will be going out from your web\/application servers to the net?&#160; We\u2019re getting into finger-in-the-air territory now.<\/p>\n<p>More charges exist for licensing, storage, etc.<\/p>\n<p>Azure pricing is more <a href=\"https:\/\/www.microsoft.com\/windowsazure\/pricing\/\" target=\"_blank\">nuts<\/a>.&#160; It makes choosing a mobile phone plan look easy.<\/p>\n<p>I dare you to give me a guaranteed price for a web server and database server on either platform on a monthly basis, that will be good for a year, and then be able to stand over that prediction.<\/p>\n<h4>Management Isn\u2019t Reduced That Much<\/h4>\n<p>One of the ideas of cloud computing is to get rid of all the management.&#160; I\u2019ve got some news for you: you might not have physical machines to look after any more but you still have virtual machines running Linux or Windows to look after if on Amazon E2C.&#160; Amazon do not look after your operating systems or applications.&#160; You have to do it.&#160; You have to lock them down.&#160; You have to patch them.&#160; You have to maintain them.&#160; I\u2019m betting there\u2019s no OS upgrade option either!<\/p>\n<h4>Supplier Lock-In<\/h4>\n<p>I\u2019m looking squarely at Platform-as-a-Service (PaaS) here, including Azure.&#160; Say you get ticked off with the unpredictable pricing of MS Azure.&#160; Or maybe you want to move to another hoster.&#160; How do you do that right now?&#160; You can\u2019t just take your application and data and put them on a virtual machine in another hosting company because the thing is completely tied into Azure.&#160; That\u2019s only going to increase with the rumoured Orleans cloud development model that is on the way.<\/p>\n<p>At least with Amazon, you develop on a familiar Windows\/LAMP stack and can port your application and data to another Windows\/LAMP machine with another hoster.&#160; OVF might even open up the possibility of being able to just move a VM.<\/p>\n<p>The answer from MS might be Azure appliance.&#160; I\u2019m not buying into that.&#160; That\u2019s going to be a very limited product and will limit your purchasing options.<\/p>\n<h4>What To Do?<\/h4>\n<p>My advice is that you go with a platform that is available with many vendors and that has a fixed monthly cost based on hard and predictable sizing if you are putting together a production system that will be used 100% of the time.&#160; Services such as Amazon E2C and MS Azure are great for temporary solutions, e.g you need temporary web or computing capacity but their unpredictable charges make them a financial nightmare.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I just read a story on The Register where a Google executive says that it makes no financial sense to use utility based cloud computing services such as Amazon or Azure.&#160; I\u2019ve been saying this for 2 years.&#160; I\u2019m out of the cloud business and have no vested interest any more and I still say &hellip; <a href=\"https:\/\/aidanfinn.com\/?p=10801\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Google Exec Questions The Cost of Utility Cloud Computing&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10801","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - aioseo.com -->\n\t<meta name=\"description\" content=\"I just read a story on The Register where a Google executive says that it makes no financial sense to use utility based cloud computing services such as Amazon or Azure. 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I\u2019m out of the cloud business and have no vested interest any more and I still say","twitter:creator":"@joe_elway"},"aioseo_meta_data":{"post_id":"10801","title":null,"description":null,"keywords":null,"keyphrases":null,"primary_term":null,"canonical_url":null,"og_title":null,"og_description":null,"og_object_type":"default","og_image_type":"default","og_image_url":null,"og_image_width":null,"og_image_height":null,"og_image_custom_url":null,"og_image_custom_fields":null,"og_video":null,"og_custom_url":null,"og_article_section":null,"og_article_tags":null,"twitter_use_og":false,"twitter_card":"default","twitter_image_type":"default","twitter_image_url":null,"twitter_image_custom_url":null,"twitter_image_custom_fields":null,"twitter_title":null,"twitter_description":null,"schema":{"blockGraphs":[],"customGraphs":[],"default":{"data":{"Article":[],"Course":[],"Dataset":[],"FAQPage":[],"Movie":[],"Person":[],"Product":[],"ProductReview":[],"Car":[],"Recipe":[],"Service":[],"SoftwareApplication":[],"WebPage":[]},"graphName":"","isEnabled":true},"graphs":[]},"schema_type":null,"schema_type_options":null,"pillar_content":false,"robots_default":true,"robots_noindex":false,"robots_noarchive":false,"robots_nosnippet":false,"robots_nofollow":false,"robots_noimageindex":false,"robots_noodp":false,"robots_notranslate":false,"robots_max_snippet":null,"robots_max_videopreview":null,"robots_max_imagepreview":"large","priority":null,"frequency":null,"local_seo":null,"breadcrumb_settings":null,"limit_modified_date":false,"ai":null,"created":"2020-12-21 03:53:17","updated":"2025-06-04 14:08:58","seo_analyzer_scan_date":null},"aioseo_breadcrumb":"<div class=\"aioseo-breadcrumbs\"><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/aidanfinn.com\" title=\"Home\">Home<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/aidanfinn.com\/?cat=1\" title=\"Uncategorized\">Uncategorized<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\tGoogle Exec Questions The Cost of Utility Cloud Computing\n\t\t<\/span><\/div>","aioseo_breadcrumb_json":[{"label":"Home","link":"https:\/\/aidanfinn.com"},{"label":"Uncategorized","link":"https:\/\/aidanfinn.com\/?cat=1"},{"label":"Google Exec Questions The Cost of Utility Cloud Computing","link":"https:\/\/aidanfinn.com\/?p=10801"}],"jetpack_featured_media_url":"","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/posts\/10801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10801"}],"version-history":[{"count":0,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/posts\/10801\/revisions"}],"wp:attachment":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}