Why SaaS prices are still going up when companies are spending less
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Re: Why SaaS prices are still going up when companies are spending less
#2It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies.
The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting.
It would also be nice to see what exactly is meant by SaaS vs presumably IaaS. I.e. would Amazon Glacier (random selection since we've been comparing the pricing with tape recently) fall under their definition of SaaS.
Re: Why SaaS prices are still going up when companies are spending less
#3Some might be testing price elasticity with the changing market. This could be temporary.
Re: Why SaaS prices are still going up when companies are spending less
#4It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…
Storage prices depend on the reliability you want.
Someone like Google cannot ever lose data of any customer. So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you. It will be redundantly stored within the datacenter across different racks, but also stored (also redundantly) in different datacenters in case of flood/fire. Theres probably a copy on tape incase of a catastrophic software bug that wipes all the drives. Or two copies on tape because if there were a software bug that wiped all the drives, the chances that every single tape was readable for a restore is low - so more redundancy needed.
However, if you go for a smaller player, they probably still keep multiple copies of your data, but it might be a RAID-5 -like setup, requiring only 1.3GB of storage for each GB you store with them. It can survive a drive failure, but two drive failures or a datacenter fire or an engineer fat-fingering an erase-all command and your data is all gone.
Thats (part of) why the big players charge so much for storage. I actually wish I could choose less reliable yet far cheaper storage option with a big player, but they don't want to offer that because of the PR hit when they do lose customer data.
Re: Why SaaS prices are still going up when companies are spending less
#5It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…
Terms like SaaS, IaaS, PaaS are pretty fluid outside of specific contexts.
Re: Why SaaS prices are still going up when companies are spending less
#6Greed.
Re: Why SaaS prices are still going up when companies are spending less
#7It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…
Storage prices depend on the reliability you want. Someone like Google cannot ever lose data of any customer. So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you. It will be redundantly stored within the datacenter across different racks, but also stored (also redundantly) in different datacenters in case of flood/fire. Theres probably a copy on tape incase of a catastrophic sof…
That makes sense and is a factor in our calculations, we store everything at least twice (as in RAID + actual copies not including tape off-site results in ~ 2GB stored for every GB), with at least a third replicated to DR off site backup. That explains the on paper per-GB price difference (which we would expect to be more expensive in the cloud, the main advantage being that we don't have to coordinate all of that, so there are areas where we would save, its just very difficult to do a price comparison given we don't know the details of their system).
It doesn't explain a huge percentage increase though. Presumably they (Google) were already doing due diligence there with respect to reliability.
Essentially agreeing with you on all those points though. Especially the bit about the PR hit. It's a constant factor in our budgeting with the understanding that if you "lose the backups", you are probably out of a job.
Re: Why SaaS prices are still going up when companies are spending less
#8Price has little to do with cost. Price should be the maximum the market can afford while still beating ones competition.
Re: Why SaaS prices are still going up when companies are spending less
#9It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…
Storage prices depend on the reliability you want. Someone like Google cannot ever lose data of any customer. So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you. It will be redundantly stored within the datacenter across different racks, but also stored (also redundantly) in different datacenters in case of flood/fire. Theres probably a copy on tape incase of a catastrophic sof…
> So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you
The actual factor is most likely around 1.4-1.5x and for sure can’t be any more than 2.2x in this day and age. Dumbest possible implementation will be “only” 3x so no it’s nowhere close to 5gb
Edit: looks like it’s public so i can actually tell you that google uses RS 3,2 which gives 1.5 replication factor. When i was there a few years ago storage folks told me they never lost a single stripe of data
Re: Why SaaS prices are still going up when companies are spending less
#10Earlier quoted context omitted.
Storage prices depend on the reliability you want. Someone like Google cannot ever lose data of any customer. So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you. It will be redundantly stored within the datacenter across different racks, but also stored (also redundantly) in different datacenters in case of flood/fire. Theres probably a copy on tape incase of a catastrophic sof…
> So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you The actual factor is most likely around 1.4-1.5x and for sure can’t be any more than 2.2x in this day and age. Dumbest possible implementation will be “only” 3x so no it’s nowhere close to 5gb Edit: looks like it’s public so i can actually tell you that google uses RS 3,2 which gives 1.5 replication factor. When i was there a…
A common problem would be throughput though. Storage capacity scales much faster than access speed. If you are storing an item only 3 times and lets say each storage location gives you 50,000 IOPS max then you can only ever service 150,000 IOPS of this item which might not be enough.