Prices are updated as follows across all locations:
· CPU: 15% reduction (cumulative reduction over last 6 months: 28%)
· RAM: 20% reduction (cumulative reduction over last 6 months: 36%)
CloudSigma’s price drop is also a reflection of decreasing computing hardware costs. “We take advantage of our consolidated operations and replace our custom-made equipment on a pretty tight two-year cycle,” states Robert Jenkins, CloudSigma CEO. The cloud is driving the demise of hardware throughout IT making future revenue streams difficult to tap for companies selling higher priced hardware direct to end users. Robert continued “CloudSigma aims to compete on a price performance basis, combining competitive purchasing and pricing policies with strong cloud technology innovation. CloudSigma’s custom stack allows the company to use innovation to transform regular hardware more efficiently into cloud resources and compete in the market.”
Recently some cloud providers have been criticized for cutting their prices supposedly to compete with large providers such as Amazon however this misses the fact that computing resources are a deflationary product. “We’ve combined 30-40% price reductions with 30%-40% performance increases over the last six months. That’s an effective doubling of price-performance this year. It is increasingly clear to us that there’s been criticism of cloud providers for reducing their prices and to the extent that they do so over and above improving the quality of their cloud product, that’s justified” points out Bernino Lind, CloudSigma COO. “Nevertheless, our primary motive for the price cuts is driven by the efficiency gains and improved performance we see from our own technology combined with falling hardware costs.”
