list some of the costs you see from corporations offering cl

list some of the costs you see from corporations offering cloud based services to their customers.

Solution

The cost of the cloud based services to their customers is based on the following:

Some of the companies that are offering cloud based services are IBM, Accenture, Microsoft and many more

Network: Cost per Rack Unit

When setting the price, cloud providers determine the expense to maintaining the network. They start by calculating costs for network hardware, network infrastructure maintenance, and labor. These expenses are added together and then divided by the number of rack units a business will need for its IaaS cloud.

Compute: Cost per GB of Virtual RAM

Each organization has a unique set of requirements including use of CPU. Most providers calculate the cost of CPU by determining the respective company’s cost per GB of virtual RAM, which includes

Hardware operation: Providers look at the total amount of virtual RAM deployed in their public clouds and then divide that into the cost per rack unit of your hardware. Your costs may include licensing and usage-based subscription costs, depending on your virtual operating system.

Hardware acquisition: This computation tells your provider how much it costs to acquire hardware for each GB of virtual RAM that you’ll be using. They also depreciate these costs over the hardware lifecycle.

Storage: Cost per GB of Virtual Disk

Storage costs are similar to compute costs. The provider calculates how much it costs to operate your storage hardware and acquire new hardware for your storage needs.

Shared Costs

Your individual cloud computing infrastructure costs aren’t all that go into your price quote. Like IaaS cloud users, your quote includes a share of what it costs to power and cool the underlying infrastructure for the IaaS platform in the datacenter. Your price quote may also include charges related to software licenses, hosting, support and other service components. Sharing these costs with other organizations in the public cloud is what makes IaaS so cost-effective.