Where Is The Cloud Cost Tipping Point?

Considering a move to the cloud and not sure whether to go private or public? A key issue is identifying the 'tipping point' — that stage where the ongoing costs of a public cloud solution outstrip those of setting up your own equipment.

Businesses have been looking at how to best use cloud solutions for some time now. Early adopters jumped onto public cloud solutions as a way of avoiding capital expenditure and shifting the cost of their IT to operational budgets.

However, some preferred to go for private cloud solutions where the same technologies were used as the public cloud. In general, public cloud solutions had a lower cost of entry — often they were free — while private cloud solutions were initially dearer.

However, as your need for space and processing power increases, the cost of some public cloud solutions can escalate and private solutions can become a more cost effective solution. Do you know the tipping point for your business's cloud costs and where a private solution might become cheaper than a public one?


    Just came across this, and thought I would share a free tool to help calculate the cost of the public cloud (so that you can start to assess the tipping point): It's called PlanForCloud (www.PlanForCloud.com); its a free tool from RightScale.


    Hassan, really good informative site and tool. :)

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