
Leaseweb Global today added a virtual private server (VPS) cloud service based on the latest generation of AMD EPYC processors, local NVMe storage and a 10Gbps network that is priced starting at €3.99/month.
Devon Rutherford, sales solution and operations manager for Leaseweb USA, said Leaseweb is making a concerted effort to make the latest generation of infrastructure available at the same price point as previous VPS services.
In contrast, rival cloud service providers are offering similar VPS services at price points that are 30% to 60% higher, he added.
Leaseweb makes it simple to configure and monitor its VPS services via a portal, and includes built-in security and reliability features, including firewalls and protection from distributed denial of service DDoS attacks.
In general, IT teams increasingly view cloud services as commodities that don’t always require one of the top three hyperscalers to provide. At a time when more organizations are sensitive to the cost of cloud services, Leaseweb provides a more affordable option for running workloads on a standard set of infrastructure, said Rutherford.
The latest VPS offering is built from the ground up using AMD processors and NVM storage rather than adding server nodes to an existing VPS service based on multiple classes of servers, he added.
Global enterprise spending on cloud infrastructure services hit $84 billion, in the third quarter (Q3) of 2024, marking an increase of $15.7 billion or 23% year-over-year, according to the latest report from Synergy Research Group. Amazon Web Services (AWS) remains the market leader with a 31% share, followed by Microsoft and Google, holding 20% and 13%, respectively. The rest of the market is split across a range of alternative services that are making a case for more affordable alternatives.
Each IT team will need to determine to what degree to rely on one or more cloud services providers. Many enterprise IT organizations have contracts in place that require them to meet infrastructure consumption requirements before pricing starts to be heavily discounted. At the same time, however, there are workloads that can be deployed on other less expensive cloud services while continuing to take advantage of the services provided by one or more of the major hyperscalers. In fact, Leaseweb is betting that as the next generation of IT infrastructure becomes more widely available, there is now a greater opportunity to gain market share at the expense of hyperscalers.
Most of the workloads being deployed on cloud services are not especially complex, and some IT organizations may opt to move them to either less expensive services or, in some instances, repatriate them into on-premises IT environments. The challenge, of course, is determining what level of savings might be achieved once the total cost of moving a workload is included in the assessment. In fact, many organizations are now embracing best FinOps practices to determine how to rein in the cost of cloud computing.
Regardless of approach, the one thing that is clear is IT organizations have more pricing leverage than ever.