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Summary:

Amazon Web Services continues to sell like hotcakes although it may or may not be the most price-efficient option; and this week’s Structure Show.

The big cloud news this week was that Amazon Web Services had another banner quarter — at least from what can be discerned from Amazon’s earnings report. For the third quarter, AWS accounted for $850 million of the $960 million in the overall category in which AWS resides, according to Technology Business Research estimates. And since Amazon isn’t saying, we’re all free to speculate.

Also interesting is the growing acceptance (at least outside Amazon) that AWS is not necessarily the most price-effective IaaS solution for every situation, as we’ve reported and analyst Ben Kepes spells out here. Kepes referenced a new IaaS benchmark from Cloud Spectator which monitors more than 20 of the biggest IaaS providers comparing “VM performance (i.e., CPU, RAM, disk, internal network, and workloads) and pricing.”

According to Kepes Cloud Spectator tried to create a common apples-to-apples framework to gauge vendor performance against each other. And, he wrote:

“… the results are pretty interesting – such well known cloud vendors as Softlayer, Terremark, Rackspace and AWS feature near the bottom of the list. While big names, but less respected vendors such as Virtustream, HP and Microsoft come out on top.”

Vendors from  Internap to Virtustream were quick to pounce on the benchmarks to tout their own relative strengths. Check out the price-performance chart below.

updatedcloudspectator

But the broader question is whether that matters, given Amazon’s head start and the pace at which it adds services and drops prices.  It’s also becoming clear that, while Amazon likes to be seen as the most cost-effective {read cheapest) option, customers realize price isn’t everything. That’s why the CIA chose AWS over IBM to build its cloud even though IBM’s projected price was $54 million less than Amazon’s. So it will be interesting to see how the IBMs, the HPs, the VMwares of the world will react once AWS starts stressing value over price. After all, that’s the spiel the legacy IT vendors like to give.

Structure Show

Check out this week’s podcast: That time the CIA dropped by Backblaze and how AWS isn’t always the cheapest option.

Other cloud news from around the interwebz:

From Gigaom: Jason Hoffman has landed — At Ericsson

From: ZDnet: OwnCloud Docutments  to bring Open Document Format editing to private cloud

From CIteWorld: Salesforce.com to shut down Do.com task management service

From Gigaom:  Cooladata raises $7.4 million for Google cloud-based analytic platform

 

Note: The Cloud Spectator chart was updated at 11:46 a.m. October 30, 2013 to reflect that OpSource was acquired by Dimension Data

  1. If you move to a cloud computing strategy to save costs, you are doing so for the wrong reasons! Cloud computing done right will probably not save you any direct costs, the advantages is in the indirect costs and the opportunities for a better and more agile infrastructure.

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