Welcome!

Java IoT Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski

Related Topics: @CloudExpo, Containers Expo Blog

@CloudExpo: Blog Post

Cloud Computing Economics - Amazon EC2 vs Terremark v Cloud Express

Cost comparison depends on the use case

The recent announcement of the Terremark Cloud offering has raised significant attention especially because of the competitive pricing and EC2 like features of elastic capacity and hourly charges with no commitment. On the surface the Terremark entry price of $0.036 per hour seems very low compared to Amazon EC2 at $0.10 but it's worth picking a few examples to provide a more apples to apples comparison.

Not included in the comparison is the difference in storage costs which can be small or very significant depending on the circumstance. Amazon provides up to 160 GB of instance storage for a small image or 850 GB for a large included in the hourly cost. If you have only a small instance say 10GB that adds $ 2.50 to the monthly price at Terremark ( @ .25/GB ) however of you needed the 850 GB included in the Amazon Large image that would add $ 212 to the monthly Terremark costs. Also not included is bandwidth costs, however both charge the same $0.17 GB for data transfer out . ( Although Amazon charges $ 0.10/GB for data in vs Terremark $ 0.17 data in ).

Some the bigger differences will more likely depend on how the VMs are utilized. The numbers stated above assume a full month of 24x31 operation. With Amazon EC2 it's possible to save in S3 ( bundle in Amazon terms ) an instance and then shut down ( terminate ) the VM and the billing stops. With Terremark however although you can shut down the VM, the hourly charges do not stop. Only deleting the VM ends the billing, there does not appear to be an option of saving with the hourly charges turned off and allowing a new instance from the saved image to be started at a later time. This appears to be a big advantage for Amazon although I need to learn more about the Terremark offering to fully appreciate the capabilities.

Certainly economics is not the only factor in selecting a Cloud infrastructure provider. Vendor Lock-in and VM portablity often come up as concerns. Security is also a factor in regard to Cloud computing and this was a motivator for Amazons recent Virtual Private Cloud offering which provides a dedicated VPN connection from a customer premise to an isolated Cloud inside the Amazon infrastructure. I also have to admit I was impressed with a recent tour of the Terremark data center in Miami , this place was like a high tech Fort Knox when it came to security. The entire topic of Cloud security is worthy of specialized consideration not covered in this simple comparison. Ease of use is another consideration that is worth evaluating. The Amazon Web Console is limited in function but easy to use plus includes access to many partner and community provided ( including Citrix C3 Lab ) templates that are prebuilt and ready to launch. In Amazon EC2 for example its now possible signup and launch your own XenApp server in as little a 15 minutes.

Terremark also provides a web base console that looks straight forward however I have not used it myself yet. Terramark does not provide the same portfolio of 3rd party templates however they do provide more granularity in the size of VMs and RAM plus they offer multiple versions of Windows Server. As the options for Cloud Computing continue to expand the economic analysis of Cloud vs Premise will extend to Cloud vs Cloud, as Service Providers continue to provide dynamic cloud type offerings.

Cloud Economics Part 1 - Premise vs Cloud vs Colo

More Stories By Chris Fleck

Chris Fleck is Vice President of Emerging Solutions at Citrix Systems. Chris started his career at IBM working across multiple engineering and product organizations leading to Business Unit Exec of the IBM Industrial Computer Group. As a pioneer of new technologies, Chris founded an IBM spin-off to commercialize the initial Server Blade products as CEO of OmniCluster Technologies. At Citrix Chris is responsible for Emerging Solutions and is involved with or leading strategic initiatives at the company. You can follow him on Twitter and his blog at TechInstigator.com

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
menora 09/05/09 06:35:00 AM EDT

Bandwidth costs are what kills the cloud for me. When I can go with a high availability provider like 478east, and get 10TB bandwidth with each dedicated server, why would i pay 1300$/mo just for that bandwidth on Amazon?

Terremark seems even more expensive on the bandwidth side.

IoT & Smart Cities Stories
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...