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Is Public Cloud Cheaper Than Running Your Own Data Center?

The question on whether public cloud infrastructure is cheaper than running on-premises data centers keeps coming in client inquiries. Clients realize that most of the answers produced by the industry so far are skewed by the vested interests of whoever is coming up with those answer. Public cloud providers make their offerings look significantly more cost-effective than on-premises data centers. Hardware vendors promote the opposite view. Furthermore, within organizations themselves, internal politics continues to inevitably influence the results of any attempt to produce defensible calculations.

That’s why we decided to take a shot at answering this. I’m proud to announce that my research note “How to Develop a Business Case for the Adoption of Public Cloud IaaS” (paywall) is now available on gartner.com. The research provides guidance on how organizations should go about calculating TCOs and ROIs for their cloud adoption and migration projects. Gartner clients often struggle to quantify the cost savings that the cloud model can lead to as well as the potential for new revenue opportunities. As a results, clients often end up calculating cloud costs with the same buying patterns as they were using in their data centers, missing out on the optimization opportunities that public cloud infrastructure can offer. At the same time, clients struggle to quantify the necessary investments to skill up and operationalize cloud to take full advantage of the technology…

Read Full Source: Gartner

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