Businesses are increasingly moving their applications to cloud providers such as AWS and Azure. These platforms charge for bandwidth based on metered usage rather than the fixed rate charges associated with Internet and MPLS connections.
You could make significant cost savings by connecting to Cloud providers via a private connection rather than the internet
When you connect to Cloud providers such as AWS and Azure, they typically charge you for data egress from their platforms. You pay these charges directly to the provider.
The charges can be over 4 times as much for data transferred out via the internet than via a private connection, so you could save a lot of money by connecting privately.
The 'Data Transfer Out' charges for AWS are around $0.09 per GB* over the public internet.
However, if you connect privately (for example using the SAS Gateway), the charge is only $0.02 per GB.
This means that for 10 TB of data transfer out per month, you would pay AWS around $900 for access via the internet but only $200 via a private connection.
If your usage was 50 TB per month then you could expect to pay $4,300 via the internet but only $1,000 via a private connection. This means you could save around $3,300 per month by accessing privately, or $39,600 over a whole year!
* Incidentally, the public internet charges shown above are for the first 10 TB per month. The charges reduce steadily in tiers as your data volume increases. The charging model and the savings for Azure are similar.
A Private connection can improve Security and Performance too
If you connect to a cloud platform privately then you can expect two further benefits.
- First, your connection is inherently more secure.
- Second, your connection is likely to have lower latency.
Find out below how to connect privately using the SAS Gateway. Before you do that, why not explore how much you could save, using our calculator?
Explore how much you could save using our Cloud Access cost calculator
Notes
- The calculator takes into account a tiered reduction in cost for higher data transfer volumes, but it ignores a very small free component for the first 1 GB per month.
- The calculator is modelled on AWS (whose pricing tool is quoted in dollars), but Azure cost savings are similar.
So how do you get a private connection from a cloud provider to your network?
Our SAS Gateway service can easily provide this connection as well as a whole range of other connection options and benefits.
