Enterprise Cloud Adoption - Solving the Pricing Conundrum

5 Mar 2015
by Ashwin Venkatesan, Ricky Sundrani


Executive Summary

Everest Group has observed that cloud pricing is one of the least understood and most troubling aspects of cloud sourcing. Cloud pricing varies significantly across providers and enterprises witness significant challenge in understanding these variations. The problems faced by enterprises in understanding cloud pricing are further complicated by a vast expanse of “non-standardized” cloud services available in the market.

This report will aid buyers in understanding the unique complexities associated with evaluating pricing for cloud services. It covers the key considerations to be kept in mind while evaluating pricing within cloud services contracts. The report also serves as a reminder for service providers to offer greater pricing granularity and transparency within cloud contracts, and to benchmark their cloud pricing against industry standards on an ongoing basis.

The key themes explored in the report are:

  • Major challenges faced by enterprises around pricing while contracting for cloud services
  • Why knowledge/experience in evaluating traditional IT services pricing cannot be extended to the cloud world
  • Need for a robust evaluation framework for enterprises to solve the cloud pricing conundrum

This research is based on Everest Group’s experience in assisting enterprise clients adopt private cloud services. Some of these clients are still in the process of deploying cloud services, whereas others have made cloud an integral part of their enterprise set-up.


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