Advice to Buyers
“The question you need to ask yourself is: Is there any benefit in paying more for a local provider? The protection premium is similar to an insurance policy: Yes, you pay more, but you have some reassurance of latency, support and protection. You need to consider how much risk you are willing to take on versus how much you are willing to pay,” says 451 Research.
Some of the other points the research firm wants buyers to consider are
Some applications don’t need high levels of data protection, nor low latency, nor local support. For these, there is no advantage in paying more – just choose the cheapest datacenter, and save.
For other circumstances, the protection premium can be relatively low for the benefit it offers – hosting locally can remove a headache from data protection, and that premium is likely to be low considering the cost of handling in ano6161 comments awaiting moderationther jurisdiction.
Is latency a big issue? Do a few milliseconds here and there really require paying such a premium? If not, then the US will be cheaper; if yes, paying a bit more can enhance your applications’ experience for potentially paying customers.
When a critical application goes down, local language support can be a lifesaver. Consider this when making your plans.
Negotiate and consider commitment, wherever you are looking to host.
The market is likely to consolidate, so be sure to know who you could end up working with in the future and ensure the longevity of your provider if you are concerned with having a deeper working relationship with your provider.
The Cloud Price Index is a quarterly publication from 451 Research.
