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Thursday, December 30, 2010

Private cloud discredited - the public cloud will win

I may have been pushing cloud computing for "group productivity" but now the numbers are out; cloud computing will actually save all corporations money. Steve. The-Economics-of-the-Cloud.pdf

Here are some headline numbers that should give pause for thought:

  • 80% lower TCO. The combination of large-scale operations, demand pooling and multi-tenancy create enormous economies in public cloud data centers: “a 100,000-server datacenter has an 80% lower total cost of ownership (TCO) compared to a 1,000-server datacenter.”
  • 40-fold cost reduction for SMBs. “For organizations with a very small installed base of servers (<100),>
  • 10-fold cost reduction for larger enterprises. “For large agencies with an installed base of approximately 1,000 servers, private clouds are feasible but come with a significant cost premium of about 10 times the cost of a public cloud for the same unit of service.”
Private cloud discredited, part 1 | ZDNet