Gartner Research

Calculating and Comparing Data Center and Public Cloud IaaS Costs

Published: 11 March 2016

ID: G00297328

Analyst(s): Elias Khnaser


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

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.