Grazed from NetworkWorld. Author: Brandon Bulter.
A group of companies that sell products to build private clouds has determined a price at which it claims it is less expensive to operate a private cloud compared to using Amazon Web Service’s IaaS public cloud. A report from the vendors - which include a collocation provider, a cloud management vendor and a network operator - attempts to address a question many organizations may be considering: When is it better to use a public cloud versus a managed hosting or collocation environment? The case study finds that if an organization is spending more than $7,644 in Amazon’s cloud each month, then it can be cheaper to operate a private cloud.
But analysts say it’s difficult to put an exact dollar figure on when a private cloud will be more cost effective than a public cloud; there are just too many factors to consider, says IDC analyst Melanie Posey. “It’s very hard to make sweeping statements,” she says in an email...