Private vs. Public Cloud Computing Solutions - Financial Comparison

Posted by Mark Teter, Chief Technology Officer
March 1, 2011

The cost of cloud computing solutions, much like the scenarios of cloud computing configurations themselves, can vary tremendously. You can spin up a public cloud for perhaps as little as $100 and private cloud perhaps approaching $5,000.

Recently, ASG conducted a detailed financial analysis of three cloud computing solutions: 1) public cloud from Amazon EC2; 2) purchased private cloud infrastructure; and, 3) a leased private cloud infrastructure. Here’s what we found:


Based on our analysis, a private cloud computing solution whether leased or purchased would seem the way to go. In addition to the financial benefits, we feel that there’s a propensity for additional flexibility and greater uptime.

This analysis shows a $513,295 cumulative cost savings over three years for the private cloud purchase versus the public cloud option. The private cloud lease saved $489,874 versus the public cloud option over the same three years.

Let us know what your financial experience has been around cloud solutions in the comments below.

About Mark Teter Before he retired from ASG in 2013, Mark Teter was Chief Technology Officer (CTO) and the author of 'Paradigm Shift: Seven Keys of Highly successful Linux and Open Source Adoptions.' As CTO, Mark regularly advised IT organizations, vendors, and government agencies, and he frequently conducted seminars and training programs.

Filed Under: Cloud Computing

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