Can you Trust the Cloud Built on Cheap Hardware?

Hewlett Packard Enterprise (HPE) Cloud Servers

A few years ago Hewlett Packard Enterprise (HPE) started pulling out of the low-cost cloud server market because the major cloud providers opted for lower cost of the underpinning hardware. How would this affect the quality of the product, and is there an alternative for customers going to the cloud?

Everyone knows the saying that a miser pays twice. But the desire to save even on trifles roots deep in human nature.

Cloud IaaS providers with a business model based on massive customer acquisition with low-cost standardized solutions often save on hardware quality. Speaking the language of business processes, this is called production cost optimization. To a certain extent, it can be justified. However, there are many pitfalls on the way. It is worth noting that not every server is suitable for building a cloud.

First, the cloud hardware, especially when it is about a public cloud like Google or Azure, must be heavy-duty industrial-type equipment. It has to meet a number of key technical requirements that are critical for the performance of a cloud: fault tolerance, stable work in peak loads, high speed, etc.

Secondly, the manufacturer should guarantee the performance of its hardware. In the situation with cheap equipment of a little-known brand, it is a very risky investment.

The growing trend among the cloud giants, in particular Microsoft and Google, which previously actively used HPE’s low-cost servers to build their cloud infrastructure solutions, now are increasingly sourcing cheap components from suppliers in China and Taiwan to build their own low-cost cloud servers. Why? And what should HPE do in the current situation? Most likely, it has to sell this part of its business. A few years ago, by the way, IBM faced the same problem and in the same way was forced to abandon the production of Lenovo cloud servers.

Let us now consider the situation from the other side. Hewlett Packard does not need any additional introduction, and it extends its guarantees across all spectrum from high-end to the low-cost servers, created specifically to meet the needs of large players in the cloud market. And now the "big fishes" are abandoning the market of low-cost servers in favor of cheaper Asian manufacturers. What does this mean for the cloud consumers? Poorly predictable equipment failures, downtime, and losses... The list of consequences goes on.

But this is the price of a strategy that emphasizes customer acquisition — and it is consumers who will pay the price. Not always reliable, almost never flexible solutions, poor communication and troubleshooting, limited provider responsibility and poor preparation of the support team (in order to save money, also scattered around the globe in an outsourcing format).

Is there a way out? The market is replete with offers, but you can find a solution that is specially developed for your project, optimal in terms of functionality and cost. You do not have to overpay for unused capacities or options that are embedded in standard offers.

Our SIM-Cloud IaaS is the German answer to the vexed question "Which cloud is better?" SIM-Cloud provides industrial-level equipment, easy-to-use configuration tools, flexible pricing, and a competent support team, available 24/7/365.

If you have any questions, please contact our Customer Care. We are always in touch!

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