HP Cloud Services, Cloud Pricing and SLAs

Jan 9, 2013   //   by admin   //   Blog  //  Comments Off

Lead Analyst: Cal Braunstein

Hewlett-Packard Co. (HP) announced the HP Cloud Compute made generally available in Dec. 2012 while the HP Cloud Block Storage cloud entered beta at that time. HP claims its Cloud Compute has an industry leading availability service level agreement (SLA) of 99.95 percent. Amazon Inc.‘s S3 and Microsoft Corp.‘s Windows Azure clouds reduced their storage pricing.

Focal Points:

  • HP released word that the HP Cloud Compute moved to general availability on Dec. 5, 2012 and will offer a 99.95 percent monthly SLA (a maximum of 22 minutes of downtime per month). The company extended the 50 percent discount on pricing until January. The HP Compute cloud is designed to allow businesses of all sizes to move their production workloads to the cloud. There will be three separate availability zones (AZs) per region. It supports Linux and Windows operating systems and comes in six different instance sizes, with prices starting at $0.04/hour. HP is currently supporting Fedora, Debian, CentOS, and Ubuntu Linuxes, but not Red Hat Enterprise Linux (RHEL) or SUSE Linux Enterprise Server (SLES). On the Windows side, HP is live with Windows Server 2008 SP2 and R2 while Windows Server 2012 is in the works. There are sites today on the East and West coasts of the U.S. with a European facility operational in 2013. Interestingly, HP built its cloud using ProLiant servers running OpenStack and not CloudSystem servers. Meanwhile, HP’s Cloud Block Storage moved to public beta on Dec. 5, 2012; customers will not be charged until January at which time pricing will be discounted by 50 percent. Users can create custom storage volumes from 1 GB to 2 TB. HP claims high availability for this service as well and claims each storage volume automatically is replicated within the same availability zone.
  • Amazon is dropping its S3 storage pricing by approximately 25 percent. The first TB/month goes from $0.125 per GB/month to $0.095 per GB/month, a 24 percent reduction. The next 49 TB prices per GB/month fall to $0.080 from $0.110 while the next 450 TB drops from $0.095 to $0.070. This brings Amazon’s pricing in line with Google Inc.‘s storage pricing. According to an Amazon executive S3 stores well over a trillion objects and services 800,000 requests a second. Prices have been cut 23 times since the service was launched in 2006.
  • In reaction to Amazon’s actions Microsoft’s Windows Azure storage pricing has again been reduced by up to 28 percent to remain competitive. In March 2012 Azure lowered its storage pricing by 12 percent. Geo-redundant storage has more than 400 miles of separation between replicas and is the default storage mode.

 Google GB/Mo

 Google Storage pricing

 Amazon S3 pricing Amazon GB/mo   Azure storage pricing – geo-redundant

 Azure storage pricing – local-redundant

 First TB

 $0.095

$0.095

 First TB

 $0.095

$0.070

 Next 9 TB

 $0.085

 $0.080

Next 49 TB 

 $0.080

 $0.065

 Next 90 TB

 $0.075

 

 
 Next 400 TB

 $0.070

     

Source: The Register

RFG POV: HP’s Cloud Compute offering for production systems is most notable for its 99.95 percent monthly SLA. Most cloud SLAs are hard to understand, vague and contain a number of escape clauses for the provider. For example, Amazon’s EC2 SLA guarantees 99.95 percent availability of the service within a region over a trailing 365 day period – i.e., downtime is not to exceed 250 minutes (more than four hours) over the year period. There is no greater granularity, which means one could encounter a four hour outage in a month and the vendor would still not violate the SLA. HP’s appears to be stricter; however, in a NetworkWorld articleHP’s SLA only applies if customers cannot access any AZs, according to Gartner analyst Lydia Leong. That means customers have to potentially architect their applications to span three or more AZs, each one imposing additional costs on the business. “Amazon’s SLA gives enterprises heartburn. HP had the opportunity to do significantly better here, and hasn’t. To me, it’s a toss-up which SLA is worse,” Leong writes. RFG spoke with HP and found its SLA is much better than portrayed in the article. The SLA, it seems, is poorly written so that Leong’s interpretation is reasonable (and matches what Amazon requires). However, to obtain credit HP does not require users run their application in multiple AZs – just one, but they must minimally try to run the application in another AZ in the region if the customer’s instance becomes inaccessible. The HP Cloud Compute is not a perfect match for mission-critical applications but there are a number of business-critical applications that could take advantage of the HP service. For the record, RFG notes Oracle Corp.‘s cloud hosting SLAs are much worse than either Amazon’s or HP’s. Oracle only offers an SLA of 99.5 percent per calendar month – the equivalent of 2500 minutes or more than 40 hours of outage per month NOT including planned downtime and certain other considerations. IT executives should always scrutinize the cloud provider’s SLAs and ensure they are acceptable for the service for which they will be used. In RFG’s opinion Oracle’s SLAs are not acceptable at all and should be renegotiated or the platform should be removed from consideration. On the cloud storage front overall prices continue to drop 10 percent or more per year. The greater price decreases are due to the rapid growth of storage (greater than 30 percent per year) and the predominance of newer storage arrays versus older ones. IT executives should be considering these prices as benchmarks and working to keep internal storage costs on a similar declining scale. This will require IT executives to retain storage arrays four years or less, and employing tiering and thin provisioning. Those IT executives that believe keeping ancient spinning iron on the data center floor to be the least cost option will be unable to remain competitive against cloud offerings, which could impair the trust relationship with business and finance executives.