IBM Cloud announces major price rises across the board

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By Craig Hale
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Unfortunate trend of price rises for cloud customers continues

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(Image credit: IBM)
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IBM is reportedly set to raise prices for its cloud products from next year, and it’s not looking good for budget-conscious customers.

A new GitHub post has uncovered a series of uplifts with effective increases reaching as high as 7.5% in some areas amid industry-wide price hikes.

According to the page, the new uplifts will apply to Bare Metal Servers, Virtual Server Instances, File and Block Storage, and Networking infrastructure, for both Classic and VPC offerings. Uplifts are also applicable to Cloud Object Storage in Sao Paulo, too.

IBM price rise

In the most extreme case, Sao Paulo in Brazil now has a new uplift of 29% compared twitch 20% previously. Osaka, Singapore, Tokyo, Frankfurt, Madrid, Milan, Paris, London, Amsterdam, Montreal, and Toronto are all, too, going to see pretty significant increases.

Dallas, San Jose, and Washington see no uplift, given that they are all cities in the US on which pricing is based. Chennai and Sydney are two other exceptions that see no increase.

Beyond this, IBM has also indicated a 25% increase for Accelerated Archive storage and a 26% rise for Deep Archive storage.

Away from Infrastructure-as-a-Service (IaaS), IBM’s Platform-as-a-Service (PaaS) prices are set to increase by 3% globally. The company says that this is to cover things like security, among other aspects.

With changes looking to be coming into force from January 1, 2024, IBM’s customers have every right to be dissatisfied, however they are not alone. Many of the industry’s giants, including AWS, have had to adjust prices in recent months. 

While companies inevitably have to pass on some rising costs to customers, some analysts have suggested that they may not be too concerned about uplifts because many customers would prefer to stay put rather than go through the tremendous trouble of migrating. Microsoft has been under scrutiny in recent months over its alleged anticompetitive nature of making it difficult and costly for customers to leave. 

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!