Key Factors Affecting Azure Hosting Costs, and What They Mean for You

Most of us now have a large percentage of our critical applications and core business processes running in the cloud. With that shift, the traditional method of IT hosting could soon be a distant memory.

Not only does Azure hosting offer a more cost-effective alternative to the previous physical server-based model of hosting, but the cloud also provides the increased flexibility and agility we’ve required since the global shift to remote work.

If you’re assessing your options for your Azure hosting, there are some recent changes in the market you should be aware of. 

The Microsoft Partner Model

Microsoft partners won’t receive the same financial rewards they used to from a percentage of their customers’ fees anymore. This means your hosting costs will now be significantly higher than they were before, as most partners will be forced to increase their fees because the amount they’re paid by Microsoft has been cut or eliminated.

Cloud Solution Provider Agreements

If you have a cloud solution provider (CSP) agreement with an Azure hosting partner, you’re no longer locked in or bound by the limitations that were previously involved. This now makes you free to explore other more cost-effective options for cloud hosting.

For the full story on the changes to CSP please read our article on the subject.

Inflation

With inflation rising, the infrastructure-as-a-service model of the cloud is a more appealing prospect than investing in a physical data centre right now.

Especially if as a business, infrastructure was purchased on finance agreements and then written down over several years at very low rates of interest. The interest rates and lead times for these agreements are now becoming untenable. 

Other Factors

Taking the right approach for your Azure hosting is an important strategic decision that could have a big impact on your bottom line. Unfortunately, these aren’t the only issues you need to be aware of when evaluating your choices.

Discover what other trends and factors are affecting the Azure hosting market at the moment, and what they mean for your business, by reading our in-depth article exploring this topic.