By Tony Howlett



As much as we all like to think we’re rational beings, even technology companies can be swayed by industry trends – one of the latest being an exodus to cloud-only hosting. In recent years, businesses have begun turning to providers like Amazon Web Services (AWS) and Microsoft Azure to realize the many benefits of cloud hosting.

Cloud hosting offers quick scalability in the event of traffic spikes; the flexibility to turn systems up or down in relation to workloads that change seasonally or over time; and the ability to run distributed software applications that can recognize additional computing resources with little reconfiguration needed.

These are such common scenarios that it makes sense for companies to devote a portion of their budget to cloud resources with AWS or Azure. But while it can meet these needs, the reality is that cloud hosting is not the most cost-effective configuration for the average company’s constant workload demands.

The cost of cloud

Think about hosting costs like your personal living expenses. There are times when you may need to stay in a hotel — for instance, when you’re traveling, transitioning between properties, or remodeling. While hotels offer the utmost flexibility and convenience, they charge a premium for doing so. In this way, the cloud is like a hotel. You can pick one anywhere at any time according to your short-term needs.

Because of this premium pricing, it’s not cost-effective to live in a hotel 365 days a year. You’re better off committing to a rental or purchase contract on a permanent residence and solely resorting to a hotel in those short-term scenarios where it makes sense. Again, the same applies to cloud.

On average, it costs about 3.3x more per month for an AWS cloud deployment than a comparable Codero dedicated server deployment. AWS and Azure deployments will likely be a vital part of your hosting strategy, but they should only be that — a part — because 90% of IT workloads are consistent and predictable. Most companies simply don’t require the flexibility of full cloud hosting.

For the best of both worlds — a balance of flexibility and affordability — people are turning to hybrid hosting.

Why hybrid hosting?

Hybrid hosting combines traditional dedicated hosting with cloud computing technologies, and has become especially useful in recent years as flexibility needs have grown in lockstep with workload performance demands.

Hybrid hosting makes leveraging tools like AWS and Azure affordable by allowing companies to keep dedicated servers for storing their data at rest and managing consistent workloads, while also providing the ability to scale the cloud as needed at any given time. Dedicated servers can give companies more storage options and provide better input/output rates.

There are three common scenarios in which hybrid hosting is cost-effective:

1. High bandwidth needs

While the flexibility of public cloud is great, keep in mind that generally all the pricing is a la carte, to use another hospitality term. This means that you are charged every time you use a resource versus a flat rate for that service per month. 

The area where companies typically get in trouble is bandwidth. Most public clouds charge for every gigabyte transferred out. Codero offers a flat rate, up to certain limits, for bandwidth in a month. So, if your application or site is very download heavy (streaming media companies, for example), you could get hit with a high bill for bandwidth on the public cloud. It may even exceed your charges for compute and storage.

If you have high bandwidth needs, consider funnelling some of that traffic out to a fixed-cost datacenter like Codero’s for flat-rate bandwidth pricing.

2. High storage needs 

The scalability of public cloud storage is unparalleled. You can easily add terabytes or more with the click of a mouse, versus having to order and install new capacity in a datacenter. However, the price per terabyte exceeds that of datacenter storage. At high volumes you should consider keeping some of that data in a datacenter.

3. Security/compliance needs 

In some cases, regulation or security needs require a company to host their services on dedicated servers in a datacenter instead of the public cloud. A multi-cloud hybrid vendor such as Codero allows companies to use the public cloud (or more than one public cloud) for workloads and storage needs that aren’t regulated and use a datacenter solution for those that require it. Codero’s unique secure multi-cloud hybrid solution can fulfill both of these requirements on one secure network, managed and supported by one vendor.  

On-demand vs. custom hybrid hosting

It’s important to note there are two types of hybrid hosting: custom solutions and on-demand. Custom hybrid hosting solutions are expensive as they require your own hardware and physical migration, which can take months to complete.

That’s why we prefer (and offer) an on-demand hybrid infrastructure. On-demand hybrid hosting is still built with your business’ specific needs in mind, but we provide and manage the tools to make it happen, in partnership with AWS and Azure or our own cloud.

For a growing number of companies, hybrid hosting simply makes good business sense. So if you’re hoping to truly get the best of both worlds for the best possible price, check out our hybrid cloud solution.
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