7/3/14 – Bernard Golden (senior director, cloud management enterprise solutions at Dell) dissects the cost structure of private and public cloud and concludes public is the big winner but is that difference reflected in the pricing? Prices from the likes of AWS keep coming down but how far can they go? This is a long and detailed blog but pricing has implications for anyone costing their IT investment and they should read this before committing.
If you are an IT organization creating a business case that indicates you can provide cloud computing services less expensively than a public provider, you need to factor in what your business case would look like if the public provider costs were 50% of what they are today. Put another way: can you drop your prices as low as your public cloud competition can?