Is Using the Cloud Really Cheaper?

Posted by JD 04/06/2010 at 06:25

I watch lots of cloud computing articles. If you follow this blog, you know that I’m not a fan of outside cloud computing, but I love internal virtualization, an internal enterprise cloud, if you will.

Let’s look at some real-world pricing.

Source

So I came across an article where 4 different cloud computing providers were tested with identical compute resources requested. The main article provides the background and narrative

That’s all fine. When I got to the cost comparison page, I was shocked at the pricing. I guess when most people think cloud, they use the $2/day estimate per CPU. That means under $1000/yr, right?

Config

To summarize the config: 20 CPUs, 5 instances for Win2008R2 and 5 instances for RHL. 40GB OS disk, VPN connection to client site. Performance tests were run with LAMP/WAMP configurations. There was no RAM amount specified.

Estimated Costs

The estimated costs for 1 year were:

Vendor1: $150,600+
Vendor2: $94,300+
Vendor3: $117,700+
DIY: $56,200

Of course, the DIY would need to include local support people, local networking, local power, UPS, backup, and racking. That stuff isn’t cheap, but you would own it when done. Be certain to build a 4 yr replacement cycle into your budget for all equipment.

Your costs – moving target

The article implies that pricing is a moving target, like dealing with a used car salesman. The prices shown could be highly inflated, but they were provided by the vendors. See the source article for the vendor names. Amazon decided not to be included in the comparison. Most vendors used VMware 3.5 to provide the virtualization.

So, I ask again, is using the cloud really cheaper?

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