Cost battle: Cloud computing vs. in-house IT
March 12, 2013
Grazed from IDG. Author: Brandon Butler.
It’s one of the fundamental questions of cloud computing: Is it less expensive to run workloads in a public cloud than in an on-premises IT environment? The answer, says Charlie Burns, a researcher at boutique advisory firm Saugatuck Technology, is "a definitive maybe." The answer varies depending on individual customers and use cases. But, Burns found some general rules of thumb. "It comes down to the basic question of, ‘How good are you at running your in-house environment?’" he says.
Large enterprises with highly optimized IT shops tailored to their business’ needs may find cloud computing to be more expensive. But, if a company has workloads that ebb and flow in their use of compute power, then the cloud can yield substantial savings, Burns found…
"Cloud IT infrastructure offerings can yield significant cost reductions for various types and sizes of workloads. But the reality of such savings is highly dependent upon the type of workload, its suitability to cloud, and the level(s) of efficiency and optimization of in-house IT resources and operations," Burns’ report states. The takeaway: Do your homework to find out what this means for you specific use case…
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