Gartner Research

Calculating and Comparing Data Center and Public Cloud IaaS Costs

Published: 11 March 2016

ID: G00297328

Analyst(s): Elias Khnaser

Summary

Clients are often faced with the need to compare public cloud IaaS costs with data center costs. Unfortunately, many IT organizations don't have a data center or public cloud IaaS cost model. This document helps IT professionals build a cost model to compare internal costs with IaaS costs.

Table Of Contents

Problem Statement

The Gartner Approach

The Guidance Framework

  • Overall Process Flow
  • Step 1: Internal Data Center Cost Calculations
    • Is Internal Versus External Cost a Key Factor in the Decision?
    • Does a Suitable Internal Data Center Cost Model Already Exist?
    • Can the Organization Build a Model With the Required Accuracy?
    • Calculating Internal Costs
    • Build the Internal Data Center Cost Model
  • Step 2: Public Cloud IaaS Cost Calculations
    • Understand the Provider's Billing Model
    • Identify Potential Workloads
    • Identify the Migration Path for Each Workload
    • Determine the Provider
    • Identify Constants
    • Calculating Public Cloud IaaS Costs
  • Step 3: Compare Internal and External Cost Calculations

Risks and Pitfalls

Gartner Recommended Reading

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