Cloud Comparison Series: GoGrid
Most end users would choose the cheaper option between two identical goods. However, this point is moot if those end users can't readily calculate and compare the costs of their options. In some cases, the complexity of a particular pricing model can negate its economic benefits.
Figure 1. Cost Analysis of GoGrid's Professional Cloud vs. Amazon Large Instance (Nonreserved) over a Five-Year Period
Take GoGrid's pricing model as an example. At face value, its Professional Cloud pricing model is complicated and unintuitive. Users cannot simply calculate in their heads whether Professional Cloud is cheaper or more expensive than offerings from GoGrid competitors. However, an in-depth cloud comparison using the IDEAS CloudSizer tool reveals that the Professional Cloud instance can be cheaper than those from other cloud services vendors. Figure 1 above illustrates one scenario in which GoGrid's Professional Cloud can save end users money over five years of usage when compared to Amazon Large instance (nonreserved).
GoGrid uses a fairly complicated pricing model (see Note 1) for nonhourly GoGrid instances like the Professional Cloud offering. As evidenced by the line in the Figure 2 below, the price of Professional Cloud does not scale linearly with the number of instances.
Figure 2. GoGrid Professional Cloud Prices for Various Numbers of Instances Running 365 Hours per Month
After a cloud pricing comparison using CloudSizer (Figure 1), one can see that despite its unintuitive pricing model, GoGrid Professional Cloud can be less expensive than offerings from other cloud providers. However, the complexity of the GoGrid pricing model can be a turnoff for end users because it raises their transaction cost (that is, the cost of making a purchasing decision). If end users surmise that the transaction cost of a particular option is too high, they will abandon that option without realizing its potential savings. A CloudSizer price comparison can minimize transaction costs and help end users discover savings they would otherwise miss.
Note 1. GoGrid Pricing Formula of Non- Pay-as-you-Go Instances
** Float x
x = HOURLY_LIMIT
IF
x = MIN[HOURS_USED_PER_MONTH*INSTANCE_RAM*NUMBER_OF_INSTANCES, HOURLY_LIMIT]
THEN
MONTHLY_PRICE + [HOURS_USED_PER_MONTH * INSTANCE_RAM *NUMBER_OF_INSTANCES – HOURLY_LIMIT]*overage _charge
ELSE
MONTHLY_PRICE
END IF
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