By Richard Seroter, Senior Product Manager. Find Richard on Twitter
Companies embrace the cloud because it offers agility, speed to market, self-service, rapid innovation, and yes, cost savings. There are plenty of cases where organizations can save money by using cloud resources, but it’s easy to focus on vendor compute and storage pricing, and forget about all the other financial components of a cloud application. See Joe Weinman’s Cloudonomics for an excellent analysis of how to assess the economic impact of using the cloud. An application can very easily cost MORE in the cloud – but that might still be just fine, since it helps the business shed some CapEx and remove servers from corporate data centers. In this post, we’ll talk about the full scope of pricing cloud applications and give you a useful perspective for assessing the overall cost.
Businesses deploy applications, not servers. A typical application is comprised of multiple servers that perform different roles. For instance, let’s consider an existing, commercial website that receives a healthy amount of traffic. It uses a load balancer to route traffic to one of multiple web servers, leverages a series of application servers for caching and business services, and uses a relational database for persistent storage.
To maximize revenue and customer...