The Great Cloud Computing Pricing Debate
A continuing controversy in cloud computing is its putative cost benefits; specifically, whether public cloud computing can provide cost advantages over computing carried out within a company’s own data center.
Certainly, billions of bytes have been expended on this discussion, with steadfast advocates for both positions. I have often heard people confidently state that their internal cloud environment is cheaper than the public alternatives. I have even seen spreadsheets proving that an internal cloud has lower costs than the primary public provider, Amazon.
Briefly summed up, the argument in favor of private clouds goes something like this: If one examines the posted prices of Amazon and projects a given application’s resource demands to those prices, it seems clear that an IT organization could achieve lower costs running its own infrastructure…

