Cloud prices are falling – but IT may still pay too much

One of the reasons companies turn to cloud computing is that cloud services are often more budget-friendly than their on-site counterparts. And now, recent price cuts from big providers could draw even more businesses to the Cloud. 

A number of the big cloud computing service providers have dropped prices in recent weeks, which is good news for anyone looking to make a move to the technology.

According to reports, Amazon and Google both cut prices for some cloud infrastructure services . Then Microsoft jumped on the bandwagon and lowered Windows Azure rates last week.

However, some industry analysts warn that companies often have a tendency to spend more than they need to when buying cloud services. That could become an even bigger issue as prices drop and the spending becomes easier to justify.

IT often has trouble figuring out how much of a service is needed, experts say, and that can lead to over-provisioning — and over-paying. Companies likely keep a close watch to catch instances when services must be scaled up, but may not be as vigilant about finding areas where scaling down is possible.

IT’s best bet to avoid over-paying for cloud services: Start out small and increase as necessary, rather than estimating needs too high from the get-go.

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