If you think that all high-value cloud resources are hosted in off-shore datacenters: Think again. Near-shore providers offer better performance in many and even lower prices in some cases. But don’t take our word for it – take a look at the data yourself!
Last year, US video streaming service Netflix made some headlines by „surviving“ a major AWS service outage without too much downtime or service interruption. They did so because their team relies on a multi-region concept that involves structure and data replication across several data centers for rapid failover and disaster recovery operations. Their success immediately proved how valuable such strategies can be if a business with a significant cloud footprint wants to optimize for availability and best-in-class disaster recovery.
The data shows: near-shoring saves money
What it didn’t prove, however, was something that we’ve known to be true for quite some time: Multi-region concepts can, in fact, not only bring up resource availability – it can also bring down hosting costs. So we turned to our very own data to prove the point. And what do you think we found? Refer to the graph below to see the price difference across providers and regions for a two-core virtual machine:
Emerging markets – not necessarily your best choice!
Can this be true? Yes, it can: We found that across all providers, VMs from the US tend to be much, much cheaper than similar resources from Asia, South America or even Europe. So – the myth that cloud resources from emerging markets deliver more value for money than those from the US (or Europe) are just that: a Myth!
Running a Virtual Machine in a datacenter in Brazil (South America) might cost you around 1.5 times of what it would cost in an American data center. The magnitude of variation within the developed world of the USA and Europe is a tad less but still in the range of 10 to 25 percent!
The reasons for that are somewhat beyond what our App can explain – but some thinking might do the trick: The price premiums in emerging economies must have something to do with – comparatively – higher establishment costs and less intense competition.
So, what does it all mean?
Simple: If you’re a US or European business with a bigger-than-average cloud footprint, do review your cloud procurement strategy. If you’re buying from individual vendors and regions only, you’re not only taking IT and business risks you might want to avoid, but you’re probably also spending more than you’d have to for your resources.
That’s not to say that you shouldn’t host things in Brazil or Singapore – you absolutely should if it makes business sense. But it is to say that you could bring in risk-management benefits and cost savings by mixing up you DC regions.
Maybe you’d like to start that review right now? Contact our sourcing team under firstname.lastname@example.org for further advice or visit our platform @ https://app.ascamso.com to conduct an analysis yourself.