All about cloud server costs


As a small business owner, one of the most important decisions you have to make is what kind of computing infrastructure you want for your business. That’s where cloud servers come in.
Cloud servers are a game-changer for small and medium-sized businesses (SMBs). They provide everything from flexibility to scalability and efficiency – but how much do cloud servers cost?
In this article, we’ll cover what a cloud server costs and what you’re paying for when you choose a cloud service provider.
Key takeaways:
- Cloud server costs vary depending on the provider, service type and usage.
- The cost of a cloud server depends on factors like CPU, RAM, storage and bandwidth, as well as other elements such as location, customer support and whether the service is managed or unmanaged.
How much does a cloud server cost?
Cloud servers are an affordable computing option for companies of all sizes. That’s why they’re so popular with SMBs.
Cloud servers give you the flexibility and scalability you need to grow, along with the kind of efficiency that used to be exclusive to the big players.
The reason cloud servers can keep costs down is that a single physical server is divided into many virtual servers, or virtual machines (VMs). This makes the most of the server’s resources, reducing the hosting costs – and that makes the service more affordable for the customer.
The costs of cloud services vary depending on the provider, service type and usage. Here are some examples of cloud server costs for basic virtual machines:
- Amazon Web Services (AWS): Costs start around £0.11/hour for general-purpose instances like t4g.xlarge (4 vCPUs, 16 GB RAM) on demand. Compute-optimised instances are slightly higher at £0.12/hour.
- Microsoft Azure: General-purpose instances like B4ms (4 vCPUs, 16 GB RAM) are priced at approximately £0.14/hour. You can get discounted rates if you opt for reserved instances with a one-year commitment.
- Google Cloud Platform: Compute Engine instances such as e2-standard-4 cost about £0.12/hour on demand. Discounts are available with committed use contracts.
- SiteGround: Offers entry-level cloud hosting at £79/month, including 4 CPU cores, 8 GB RAM and 40 GB SSD storage, with auto-scaling for traffic spikes.
- DreamHost: Provides an affordable option starting at £0.006/hour for a plan with 512 MB RAM and 80 GB SSD, translating to around £3.50/month for continuous use.
Since cloud server costs depend on usage patterns, it’s worth considering your specific workload and looking into discounts for longer-term commitments.
Cloud server costs: What are you paying for?
Cloud server costs depend on factors such as CPU, RAM, storage and bandwidth. Here’s a closer look at what you’re paying for when you choose to go with a cloud server:
- CPU (Central Processing Unit): The server costs are influenced by the number and type of CPUs used. CPUs can be physical cores or vCPUs. The more powerful and the more of them there are, the higher the costs.
- RAM (Random Access Memory): The amount of RAM allocated to your server affects the costs – the more RAM you use, the higher the price.
- Storage: The price of storage may vary depending on its type, capacity and performance. There are two main types of storage: HDD and SSD – SSD performs better, but also costs more.
- Bandwidth and network: The higher your bandwidth and the faster your network speeds, the higher the price of the cloud server. Network add-ons like load balancing and floating IP addresses can also increase the costs.
- Region and location: Cloud server costs can vary depending on the region and the individual data centre. Operational costs for things like electricity and cooling can also differ from one location to another.
- Customer support: Some hosting and cloud providers offer different tiers of customer support. Depending on the level of support you need, customer support may increase the costs of your server.
- Managed vs unmanaged services: In managed cloud services, the provider takes care of maintenance and support. Because this places more operational responsibility on the provider, managed cloud servers cost more than unmanaged servers.
With that being said, not every factor is equally important for every company. When choosing your provider, consider which areas are important for the growth and operational efficiency of your specific business – those are the areas you want to invest in.
Wrapping up
With a cloud server, you get the flexibility, scalability and efficiency you need to grow your business – at a price that won’t break your SMB budget.
When choosing a cloud service provider, consider your specific workload, prioritise the factors most important to your business and look into discounts for longer-term commitments.