Cloud Hosting Costs

Cloud computing is, without a doubt, the new frontier when it comes to website hosting. But like any other web hosting service, you need to know the costs involved before signing up. Any cost model you think of entails 3 types of spending; upfront spending (the money you need to spend to get a foothold into the game), Fixed spending (doesn’t increase over time, but adds up), and variable spending (increases as you use the service more and more). For cloud computing, the costs revolve around network, compute and storage.

  1. Cloud hosting costs: Network

When cloud hosting companies are computing their prices, they factor in the cost related to maintaining the network. They begin computing three costs here:

  • Cloud hosting network hardware costs

Every server dictates that the cloud hosting provider should buy specific kinds of network hardware. The cloud providers purchase the network hardware and depreciate the value according to the longevity of the network hardware.

  • Maintenance of the cloud hosting network infrastructure

This cost takes into account security components, such as routing, firewall, load balancers, uplinks, patch panels and LAN switching.

  • Labor cost related to cloud hosting network

This is the cost of labor that is required to monitor, manage, troubleshoot and maintain cloud computing infrastructure. Note that the employees work around the clock to ensure uptime and cloud environment availability.

2. Cloud hosting costs: Compute

The web hosting providers typically take into account the cost per GB of virtual RAM. Every entity uses up GBs depending on their complexity. The readings are typically extracted from the CPU. That’s why most cloud hosting providers compute their cost of CPU by ascertaining the given company’s cost per GB of virtual RAM. That takes into account hardware operation and hardware acquisition.

Hardware operation is where the cloud hosting company considers the cumulative virtual RAM set up in the cloud. They then divide that figure by the cost per rack unit of your hardware. The costs may also encompass usage-based subscription and license, and that hinges on your virtual OS.

Hardware acquisition calculation informs the cloud hosting provider of the amount it costs to buy hardware for every GB of virtual RAM you will be utilizing. The cloud hosting provider also depreciates these costs depending on the longevity of the hardware.

3. Cloud hosting costs: Storage

Storage costs mimic compute expenses. Here, the cloud hosting provider determines the costs of your storage hardware and new hardware acquisition.

4. Cloud hosting costs: Shared costs

There are costs you will share with other websites on the same cloud server, including the cost of powering and cooling the cloud infrastructure, the software licenses involved, hosting and support. This kind of cost sharing is what makes cloud hosting cost-effective.