38. Pricing - Oracle Cloud Infrastructure Foundations - video Dailymotion

Psycho Killer

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00:00Welcome to this module on governance and administration. As part of this module the

00:08first lesson we are going to look at is around pricing. Now pricing is a complex topic. A lot

00:13of pricing with a lot of cloud providers is complex. Oracle's pricing is simple, it's transparent

00:19and it's lower pricing than our competitors. So let's look at some of these in this particular

00:25lesson. The first thing is what kind of pricing models do we support. So we definitely support

00:30pay-as-you-go pricing where you are charged only for the resources you consume. There is no upfront

00:35commitment, there is no minimum service period and the usage is metered. This is pay-as-you-go for

00:41most of the resources but for some resources like our managed serverless platform called Functions

00:47it takes it to the next level. So you have this concept of consumption-based pricing where you

00:53are charged only when you consume the resource which is different than pay-as-you-go because

00:58you have to pay for the VMs even though you might not be using them or they might be running idle.

01:03So we support pay-as-you-go and consumption-based pricing and all sorts of models in between.

01:08And then the second model we support is called annual universal credits and the idea here is you

01:14commit to an annual pool of funds. In return because of this commitment you get significant savings but

01:19the thing is you have to use these credits within 12 months. If you end up with more resource usage

01:25then you pay for them on a pay-as-you-go basis and the discounts here vary based on the size of the

01:32deal and term of the deal. There is also something called monthly universal credit and you should read

01:38more about that on our website. And the last option is bring your own licenses. This is for customers who

01:43are running their on-premises licenses. If they want to reuse that in the cloud why would you do it?

01:49It reduces your overall cost and you could reuse those licenses in the cloud.

01:54Now let's look at factors that impact pricing. The first factor which impacts pricing is the size of

02:00the resource. So bigger resources are going to cost you more. That's just natural because it's

02:05pricing is based on consumption and the type of resource you use. So the bigger resources will cost

02:11you more. Data transfer is a big part of the pricing and we'll talk about some of that on the next slide.

02:18The resource type you choose also determines your pricing. So virtual machines versus bare metal have

02:24different price points versus serverless has a different price point. If you bring in your own

02:29licenses they have a completely different pricing model. So keep all that in mind. One thing to keep in

02:35mind with OCI is we have the same pricing across the world. So all the OCI regions have the same pricing.

02:43This is very different than the typical traditional cloud model where the pricing is very local. So you pay

02:50a different price in the US. You pay a different price outside the US in different countries where the cloud

02:54regions operate. Let's look at the data transfer cost and why it is so important. Well the thing is data transfer can be

03:01up to one fourth of your bill or even higher and the reason is your applications are always communicating

03:08whether they are communicating to the end users or they are communicating internally. So to give an

03:12example if you look at the OCI region 1 we have two availability domains. You have an application which

03:19might be running in a high availability mode across two availability domains. Now in case of OCI you don't

03:28really pay for any data transfer happening between these two ADs as you can see on the graphic here.

03:35In case of some other cloud providers they charge you for data transfer between ADs. In a way this is

03:40penalizing customers for achieving high availability which is one of the goals of cloud computing. So it

03:47doesn't make a lot of sense that way. Also with Oracle incoming traffic is free as it's the industry

03:53standard but outgoing traffic is 10 times lower than some of the other cloud providers and you heard me

04:00right it's 10 times lower it's not 10 percent lower it's nearly 10 times lower. So you save a lot of

04:08money particularly if you have applications which which have high data transfer usage you end up saving

04:14significantly by using OCI. And that's it we wanted to keep it very high level very simple the three pricing

04:22models we support and then the highlight of our pricing is it's simple it's transparent and some of the

04:28elements like data transfer cost you 10 times lower. So it's definitely a lot cheaper than some of the

04:35traditional cloud pricing out there.

04:37Thanks for watching

38. Pricing - Oracle Cloud Infrastructure Foundations

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