AWS vs Azure vs GCP: Cloud Cost Comparison
Cloud computing is one of the hottest buzzwords in the IT field right now. The public cloud providers offer easy to set up, highly scalable, and generally affordable benefits. With various cloud providers currently available in the market, Amazon AWS, Microsoft Azure, and Google GCP stand out proudly as the top contenders. They have already reported double-digit growth in cloud computing. However, one must acknowledge that these cutting-edge cloud solutions come at a certain cost. In this blog, we shall delve on AWS Vs Azure Vs GCP cloud cost comparison and see how they fare. But before we do, let’s understand the current state of the cloud market.
According to Flexera’s 2022 State of the Cloud report survey, 81 percent of companies operate heavy cloud infrastructure for AWS, while 80 percent of enterprises use the moderate cloud for Azure. Google is next, with 51 percent of companies running heavy cloud. The IT firm Flexera took 753 respondents’ opinions for this survey.
Picking an integrated cloud vendor for your organization is not an easy task. One has to consider multiple factors some of which are unique needs, business goals, workloads, requirements, and others. One of the criteria is pricing. While cloud technology is all about making things cost-effective, it is tough to choose from AWS, Azure, and Google as pricing can vary widely by different plans, service choices, features, discount options, resource use, and more.
Amazon Web Services (AWS), Google (GCP), and Microsoft (Azure) are the most prominent public cloud providers, and they have a multi-billion dollar market share in the cloud computing arena. While all three provide similar vital functions, which public cloud provider best suits your organization on pricing the aspect? Our Veritis team will help you pick the right vendor for your platform.
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Before going into an in-depth AWS Vs. Azure Vs. GCP cloud cost comparison, we will cover the estimated amount of each provider you can expect to pay as an average user. First, let’s have detailed info about each provider.
Amazon Web Services (AWS)
AWS came into the limelight in 2006 with services like Simple Storage Service (Amazon S3) and Elastic Compute Cloud (EC2). In 2009, it offered more services such as Elastic Block Store (EBS), Content Delivery Network (CDN), and Amazon CloudFront. Amazon currently offers more than 18,000 services which range from productivity tools to machine learning.
Amazon Web Services is the most standard storage service for object archiving, and it holds the biggest chunk of the current cloud market. It consists of a rich pair of tools like IoT, security, databases, management, analytics, and enterprise applications. On the other hand, AWS Service S3 offers reliability, scalability, accessibility of information, and efficiency.
AWS dominates the global market with a revenue share of 32%, while Azure has a 21% market share, and GCP has an 8% market share.
Microsoft and Google compete with AWS by reducing their prices. AWS provides a pay-as-you-go model for its services as users pay what they consume for their service, and once they finish the services, there is no need to pay the additional amount or termination fees.
Inside AWS, the pricing format is complicated enough to make you seek a third-party app to manage all these services. However, for the minimum instance (for 2 virtual CPUs and 8 GB Ram), Amazon will cost you nearly USD 69/month, while the maximum instance (for 128 virtual CPUs and 3.84 TB Ram) will increase you nearly USD 3.97/hour.
Measurement specifications for Amazon S3
Storage volume: 200 GB per month
Data scan: 200 GB per month
Data return: 200 GB per month
PUT, COPY, POST, LIST requests: 10,000
GET, SELECT, and all other requests: 10,000
With the data mentioned above, we estimated the minimum total you will need to spend per month for your MVP (minimum viable product). The prices of Amazon S3 vary from one region to another. To put in perspective, the cost in some of the regions would be: UK – USD 5.47, US East – USD 5.20, US West – USD 5.87. Meanwhile, all other places would average at USD 5.5. The cloud storage prices are USD 4.65 per month for all outlined locations.
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Azure provides a diverse range of storage cloud types that cater to multiple companies’ requirements. Data Lake Storage and Queue Storage are some of the best Azure options for big companies that need high data storage requirements. Bulk storage is ideal for companies opting for a large amount of unstructured data, while File storage is reliable and designed for most business requirements.
The cost of Azure depends on multiple factors such as the level of management, the capacity required, and the location. Additionally, it offers a free tier, which allows free forever for some specific models and the free use of certain models for the first 12 months only.
Like AWS, Azure offers the pay-as-you-go pricing model. It also provides an alternate option to pre-purchase their service which it calls as “Reserved Instance” (upfront commitment). This scenario requires commitment for 1 or 3 years for many of their products. With Reserved Instance, you can receive up to a 72 percent discount for Azure services. It also offers spot instances, allowing users to purchase VMs from Azure’s spare capacity at a low price.
The pay-as-you-go approach is charged on a per-second basis, and users can start or stop the service as per requirement and pay for what they use. On the other hand, the Reserved Instance is built for continuous use, and it is based on the entire month’s cost (730 hours) and pay as you go model also depends on 730 hours analysis as per the pricing calculator.
Therefore, when comparing both the models, 730 hours Reserved Instance vs 730 hours pay as you go, the Reserved Instance model looks best by estimating with the price calculator in the scenario that you need to use Azure cloud services for a year or more.
Microsoft Azure allows a wide range of services such as computing, networking, storage, and analytics. Therefore, its pricing model depends on various factors, including the capacity required, the location, the type of service, and the management level
Pricing Model of Azure
|Service||Starting Cost||Workload||Cost Factor||Monthly Cost|
|Block Blob storage (ZRS COOL)||USD 0.013||Reserving 100 GB for 1 month||GB – Month||0.013*100 = USD 1.3|
|Block Blob storage (ZRS HOT)||USD 0.023||Reserving 100 GB for 1 month||GB – Month||0.023*100 = USD 2.3|
|Functions||USD 0.20||Serverless functions for 30 days with 5 million executions per day||Million executions||30*5*0.2 = USD 30|
|Linux virtual machines (VMs)||USD 0.004||10 virtual machines are using for 30 days||Virtual machine hourly usage||10*30*24*USD 0.004 = USD 28.8|
|Total||Price for 200 GB storage, serverless functions for 30 days with 5 million executions per day, and 10 virtual machines||Price USD 62.4|
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Google Cloud Platform (GCP)
Within a short span of time, Google Cloud has emerged as a strong competitor for the other two big platforms in cloud services. It stands out among them with its endless IT expertise and internal research. Google features many hosted services such as Platform as a service (PaaS), and Infrastructure as a service (IaaS) for compute, storage, and application development.
It provides multiple pricing models, including free tier options, long-term reservations, and pay-as-you-go pricing. Moreover, Google Cloud prices are affected by several factors like compute, SQL, network, storage, and serverless pricing. These components should be explored when you select a cost structure for your enterprise.
Google offers its customers USD 300 credit for free as customers can spend their amount on their Google Cloud products. Additionally, users can use multiple free products like compute, storage, database, IoT, and Artificial Intelligence, the most widely used cloud services in the current market.
Furthermore, the US tech giant provides substantial discounts for products committed to a certain usage level for one or three years in advance, also known as “committed use.”
Google allows a unique option for its users ‘Sustained Use discounts’. This offer is automatically applied on a sliding scale by the percentage usage of the services throughout the month. You can even combine non-overlapping instances with claiming the benefits of a percentage discount up to the maximum level without any prepayments or commitments.
Useful Link: Full Advantage of Cloud Migration with GCP
AWS Vs. Azure Vs. GCP Cloud Cost Comparison
|Detail||Amazon AWS||Microsoft Azure||Google GCP|
|Minimum Instance||2 virtual CPUs, and 8 GB of Ram will price you around – USD 69/month||2 virtual CPUs, and 8 GB of Ram will price you around – USD 70/month||2 virtual CPUs, and 8 GB of Ram will price you around – USD 52/month|
|Maximum Instance||3.84 TB Ram, 128 vCPUs will price you around – USD 3.97/hour||3.89 TB Ram, 128 v CPUs will price you around – USD 6.97/hour||3.75 TB Ram, 160 v CPUs will price you around – USD 5.32/hour|
|Type of Discount||Reserved Instances (RIs)||Reserved Instances (RIs)||Committed Use Discount (CUD)
Sustained Use Discount (SUD)
|Commitment||1 or 3 years||1 or 3 years||Committed Use Discount (CUD) – 1 or 3 years
Sustained Use Discount (SUD) – no commitment
|Discount percentage||Up to 75 percent||Up to 72 percent||Committed Use Discount (CUD) – for 1 year up to 37 percent or 3 years up to 55 percent
Sustained Use Discount (SUD) – up to 30 percent
|Is cancellation available?||Yes, it offers to sell your products on the marketplace||Yes, they will charge a 12% cancellation fee||No cancellation is available|
|Payment options||3 options are available on AWS – no up-front, partial up-front, all up-front||All up-front||No up-front|
|High Profile Customers||LinkedIn, Facebook, BBC, Airbnb, Twitch, Netflix, Adobe, ESPN, Lamborghini, etc.||Apple, HP, Coca-Cola, LG Electronics, Verizon, Xbox, Fujifilm, etc.||Twitter, Intel, Yahoo, PayPal, eBay, Target, 20th Century Fox, etc.|
Cessation for AWS, Azure and GCP Pricing Models
In this duel of AWS Vs Azure Vs GCP cloud costs comparison, the three big cloud vendors have successfully claimed the top places in cloud computing, and they have a very cutthroat competition to secure the number one position in the market. The world’s top 3 cloud infrastructure vendors are decreasing their prices regularly. They also offer unique pricing models and different discount options, making it very hard to pick in the current scenario.
Before picking the best cloud service provider for your company, know your requirements and end goal. For example, if millions of users are operating your application and your organization uses thousands of instances, this blog post will guide you to save thousands of dollars.
If your enterprise needs a deep feature portfolio, you can opt for AWS cloud services. GCP is the better choice for organizations seeking optimal innovation and low cost. Azure is the best choice for companies that are primarily operating Microsoft products.
As you can see, the myriad of choices may make it tough for you to decide which one to go with. Instead of having to choose between one among the three, why not go with a multi-cloud strategy which gets you the benefits of the various clouds. However, implementing a multi-cloud strategy is easier said than done, and this is one of many reasons as to why companies seek Veritis’s services.
Veritis offers a platform to discuss and explore emerging technologies in unprecedented breadth and depth. Veritis have a dedicated team of experts to find the best solution within the budget for your organization. We deliver bunches of services from Cloud and Devops Services to Technology Advisory
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