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Cloud pricing fire sale, never let a crises go to waste, buy now at fixed prices.

by Valdis Filks  |  April 2, 2014  |  5 Comments

Over the past couple of weeks we have seen Google, Amazon and most recently Azure announce price cuts. I doubt very much that this will be sustainable but what we are seeing is a good old fashioned price war. So never let a crises go to waste. Simple advice, if you want to buy cloud storage buy it now and fix the contract for 3-5 yrs. Do not go for the usual monthly pricing that is just a trap and a lost leader or a quick way for cloud vendors to increase revenue and market share.  What I would like to see is cloud storage future contracts and trading, just like we see for other commodities, but that will take time as the cloud industry matures.   But it will not work if there are too few cloud storage suppliers.  General advice, if you are a large potential or existing cloud customer,  sign up with the cloud provider who can give you these cloud storage costs at fixed prices, over a couple of years at least.   If you are an existing cloud storage customer, move to a cloud storage vendor who can offer long term fixed pricing at the present knock down rates.  A couple weeks ago I wrote the cloud storage vendors are cutting margins so thin that they are showing their underwear.  Now they are naked, but I probably cannot publish are picture like that.  So the only analogy that I can find is that we are staring into the abyss and we end up with my black whole theory of computing.   The cloud will suck all storage in and then implode under its own weight/gravity.   I am afraid that we are seeing another race to the bottom but if you are smart you can exploit it.  For those in the storage purchasing business who would like to learn some tips about purchasing storage, I would recommend this;  How to Negotiate Lower Storage Acquisition Costs.

Supermassive_black_hole

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Tags: cloud  cloud-storage  storage-costs  

Valdis Filks
Research Director
6 years at Gartner
29 years IT industry

Valdis Filks is a research director for Storage Technologies and Strategies in Gartner Research. Before joining Gartner, Mr. Filks worked as an EMEA chief storage architect, enterprise systems manager, storage practice manager and professional services storage practice manager. Read Full Bio


Thoughts on Cloud pricing fire sale, never let a crises go to waste, buy now at fixed prices.


  1. […] About the only thing that can get in the way of success here is a price war that’s recently gone hot. […]

  2. […] About the only thing that can get in the way of success here is a price war that’s recently gone hot. […]

  3. […] About the only thing that can get in the way of success here is a price war that’s recently gone hot. […]



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