Why Cloud Prices Are Still High

Cloud Computing Insider

Over the past two decades, public cloud providers have transformed IT, offering unmatched scalability, agility, and innovation. Organizations of all sizes have embraced the cloud, captivated by its promise of unparalleled flexibility and reduced infrastructure management. Yet, a glaring paradox has surfaced: while hardware prices continue to fall, public cloud costs remain stubbornly high—or even rise.

For enterprises and IT leaders grappling with tightening budgets, this disconnect has become difficult to ignore. Why, at a time when the cost of physical servers, storage, and networking equipment is declining sharply, are public cloud providers unwilling to pass those savings on to customers? The answer lies in a complex mix of economics, operational challenges, and provider strategies that underpin the pricing models of hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud.

This issue raises important questions about the sustainability of public cloud reliance and whether alternatives such as private clouds, colocation, or hybrid solutions deserve greater consideration. As cloud costs climb and businesses seek greater ROI, it’s time to reevaluate what drives these prices—and explore how enterprises can build more cost-effective IT infrastructures while maintaining flexibility and performance