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What Does the Average Cloud Based Server Cost?

cloud based server cost

Imagine what your company could do if you could access required data from wherever you wanted at any time. This would exponentially increase your productivity and help you meet all your clients' needs.

Leveraging opportunities like these will help ensure you avoid becoming one of the 20% of small businesses that fail each year. It's essential to understand your cloud-based server cost before moving forward, though, as doing so will help you create an accurate budget.

Let's explore the key factors that influence what you'll pay.

Cloud Computing Costs

When your company runs a large number of applications or ones that are memory-intensive, you'll increase your cloud computing costs. The total cost of cloud computing depends on the virtual machine used, the operating system, and the geographic location where the instance is run.

Companies can use a variety of instance types at different price points and specifications. Some applications will require a large number of instances, dramatically increasing the necessary computing power. Many providers have data centers across various regions so they can help reduce the costs their clients incur.

Storage Costs

It will cost your provider money to safely store your data on their cloud server. These will depend on how much information they work with as well as the type of data. The physical region also plays a role, similar to computing costs.

Providers offer a range of storage options, each with their own price points and performance metrics. A common example is block storage, which is ideal for workloads requiring low latency and high levels of performance. In contrast, object storage is better suited for storing unstructured data like videos, images, and documents.

Database Pricing

It's essential to consider the cost of maintaining cloud database access when figuring out your cloud server costs. There are various types of database services with different levels of security, including in-memory, relational, and NoSQL. These will have a substantial impact on the database's price.

The performance of the database instance and its total capacity will also influence its pricing. It's best to browse different service providers so you can find the ideal one for your situation. The right choice will depend on your company's needs and budget, so make sure you have a solid understanding of these details before moving forward.

Data Transfer Fees

If you need to transfer information, you'll incur data transfer fees. Most providers will charge their clients to transfer data away from the cloud server but won't charge to transfer information to it.

Left unchecked, these costs will quickly add up. This is especially true when sending large amounts of data to users, such as what you'd experience with video streaming services.

Companies should monitor their data transfer fees at all times so they can prevent financial surprises from arising. Your provider should be fully transparent about their rates. If they deflect questions about this topic, it's essential to avoid that firm.

Potential Discounts

Some providers will offer discounts for first-time clients. For instance, they could waive fees for your first month of service if you sign up under certain conditions. Entering extensive agreements could also help you lower your monthly rate for your business cloud server.

One of the most flexible models is the on-demand model. This allows you to pay for only what you need when needed.

Spot instances are another great way to reduce your total costs. These involve bidding on unused cloud capacity at discounted prices. However, your provider can terminate them at any given time with short notice depending on their terms.

Software Licensing

In some situations, you may need to license certain software. This will add to the overall cost, and it's imperative to have insight into what you'll pay. Licensing specialized software is often more expensive than working with general-use applications.

Some applications have different usage tiers. To clarify, you might need a mid-tier license to allow you to use the software across multiple devices. Similarly, your company could need an enterprise-level license that offers more privileges but comes at a higher price point.

Finding a Cloud Server Provider

Not all providers are created equal, and it's imperative to do your due diligence before moving forward. A simple Google search can go a long way regarding how you narrow down your choices.

Look for companies with no shortage of stellar feedback. However, it's also important to look for fake reviews during your search. These are often easy to recognize, as they contain many of the same keywords and have similar formatting.

It's best to ignore them when making your assessment. Never overlook their pricing structure.

It's best to avoid the cheapest options you find, as these are unlikely to reach your goals. However, you don't need to spend as much money as possible.

There's a point of diminishing returns regarding what you budget for. Somewhere in the middle of the industry's price range will help you get the results you need without overspending. Do they seem enthusiastic about helping you reach your goals?

Never work with a firm that doesn't seem to care about your performance. You can assess this attribute by paying attention to how many questions they ask about your needs.

If they don't want to know as much as possible, continue searching elsewhere. With enough vigilance, you shouldn't have an issue getting the right results for your business.

Understand Cloud-Based Server Cost

It's imperative to understand the total cloud-based server cost before moving forward so you'll have insight into what you need to budget for. The information in this guide will help you make the right decisions for your company. Just be sure to research the provider you choose.

Eagle Point strives to empower our clients and help them bring their visions to life. Our senior management team has nearly 45 years of industry experience and has helped organizations of all sizes manage their business systems.

We can outsource all of your IT, supplement your existing staff, provide consulting, and much more. You'll learn more about the benefits of working with us when you schedule a call today.


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