Gartner Research

Comparing Data Center Costs With Public IaaS Cloud Services

Published: 13 June 2012

ID: G00228692

Analyst(s): Nik Simpson


Assuming that cloud-based infrastructure as a service (IaaS) will reduce costs, compared with running a traditional data center, often leads to unpleasant surprises for organizations that don't truly understand cloud or internal costs. However, developing an accurate understanding of these costs is difficult because of the lack of visibility into internal costs, misleading cloud cost calculators, and insufficient understanding of the true costs of running applications in the cloud. This document helps decision makers understand the costs and provides guidance on what costs to measure when comparing internal costs with the public IaaS cloud and how to undertake the comparison.

Table Of Contents

Summary of Findings

Guidance Context

  • Problem Statement
  • Guidance Applicability

Gartner Definitions

The Gartner Approach

The Guidance Framework

  • Prework
  • Overall Process Flow
    • Internal Cost Calculations
    • Cloud Cost Calculations
    • Ancillary Cost Calculations

Risks and Pitfalls

Recommended Reading

Revision History


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