A glance at the cost of cloud services: Ecosystem for AWS, Azure, and GCP.

Cloud computing has revolutionized the way businesses operate, offering on-demand access to computing resources and data storage at a fraction of the cost of traditional IT infrastructure. However, as the market for cloud services continues to mature, it's becoming increasingly clear that the costs associated with using these services can be complex and difficult to predict. In this review, we'll take a closer look at the cost structures of the three largest cloud providers - Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) - and examine the reasons why the cost of cloud computing can sometimes be higher than expected.

One of the main reasons for unexpected costs in cloud computing is the cost of data transfer or egress.

According to a recent blog post by Cloudflare, AWS charges customers for data transfer from its data centers to the internet in a way that can be "egregiously expensive." This can result in businesses being hit with unexpected bills for data transfer, even if they only use a small amount of data. The data transfer cost is essential for companies when choosing a cloud provider, as it can significantly impact the overall cost of cloud services. This, of course, depends on the type of workload; for instance, heavy media or data would incur very high-cost models. IoT workloads that require consistent data ingest and transformation would also be somewhat challenging. This, of course, all depends on data gravity, as Faction describes in their blog.

Another factor contributing to the complexity and cost of using cloud services is the lifecycle of the data being stored in the cloud.

As a16z notes in a recent article, the cost of cloud computing can increase as a business moves through different stages of the data lifecycle, from development and testing to production and archiving. The costs associated with each step can vary greatly depending on the cloud provider and the specific services used, making it difficult for businesses to predict and manage their cloud costs.

Finally, the scale of a business's cloud usage can also significantly impact the cost of cloud computing. As a16z notes, companies that experience rapid growth in their cloud usage can find that their cloud costs grow faster than their revenue, leading to a "cost of cloud paradox." This paradox arises because many cloud providers offer lower prices for more negligible usage levels, but the cost per unit of computing resources increases as usage grows.

In conclusion, the cost of cloud computing is complex and challenging to predict, with several factors contributing to the total cost of using cloud services. Businesses need to be aware of the costs associated with data transfer, the lifecycle of their data, and the scale of their cloud usage to make informed decisions about their cloud provider and avoid unexpected costs. By understanding the cost structure of the major cloud providers, businesses can make informed decisions about which provider is suitable for their needs and be better prepared to manage their cloud costs over time.

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Although I highlighted those two articles, I also found the following very helpful when writing this article.

1. "The Real Cost of Cloud Computing: Understanding Hidden Costs" (Forbes, 2020) - This article provides an overview of some of the hidden costs of cloud computing, including data transfer, storage, and security. It also highlights the importance of understanding the total cost of ownership for cloud services rather than simply focusing on the cost of the service itself.
2. "The Hidden Costs of Cloud Computing" (CIO, 2020) - This article provides a comprehensive overview of the costs associated with cloud computing, including data transfer, storage, and security costs. It also discusses how businesses can better understand and manage their cloud costs through cost optimization strategies.
3. "The Cost of Cloud Computing: What You Need to Know" (TechRadar Pro, 2020) - This article provides a detailed overview of the costs associated with cloud computing, including data transfer, storage, and security costs. It also provides tips for businesses looking to reduce cloud costs, such as using reserved instances and monitoring their usage patterns.
4. "The Hidden Costs of Cloud Computing: What You Need to Know" (ZDNet, 2019) - This article provides an overview of the hidden costs of cloud computing, including data transfer, storage, and security costs. It also highlights the importance of understanding the total cost of ownership for cloud services, and provides tips for businesses looking to reduce their cloud costs.
5. "AWS Storage Cost Comparison: S3 vs EBS vs EFS" (ZNet, 2021) - This article provides a comparison of the storage costs for Amazon Web Services' (AWS) S3, EBS, and EFS services, and discusses the factors that contribute to the costs of each.
6. "The Cost of Cloud Computing: Comparing AWS, Azure, and GCP" (TechCrunch, 2021) - This article provides a comparison of the compute costs for AWS, Microsoft Azure, and Google Cloud Platform (GCP). It also provides insights into the cost structures of each provider, and highlights some of the factors that contribute to the cost of using cloud computing services.
7. "Comparing the Cost of AWS EC2 and GCP Compute Engine" (Datamation, 2020) - This article compares the compute costs for AWS EC2 and Google Cloud Platform's Compute Engine. It also provides insights into the cost structures of each provider, and highlights some of the factors that contribute to the cost of using cloud computing services.
8. "The Cost of Storing Data in the Cloud" (Information Age, 2020) - This article provides a comprehensive overview of the costs associated with storing data in the cloud. It provides a comparison of the storage costs for different cloud providers, and highlights some of the factors that contribute to the cost of storing data in the cloud, such as data transfer costs and the cost of storing large amounts of data.