Cloud may be overpriced compared to on-premises systems
We’ve long been comparing and contrasting cloud-based infrastructure with the infrastructure sold by traditional enterprise hardware and software players. However, some further information is starting to appear.
The Bureau of Labor Statistics Producer Price Index reported a 3.9% month-over-month decline in the cost of host computers and servers, meaning that the hardware has gotten cheaper. At the same time, cloud services saw prices increase by 2.3% since the third quarter of 2022. The reality is cloud computing may not be the slam dunk we once thought, at least in this moment.