Gartner Research

Calculating and Comparing Data Center and Public Cloud IaaS Costs

Published: 12 October 2017

ID: G00334805

Analyst(s): Angelina Troy , Elias Khnaser


Organizations are often faced with the need to compare data center and public cloud IaaS costs, such as those from Microsoft Azure and Amazon Web Services, but do not have cost models for either. This research helps technical professionals build cost models to compare internal costs with IaaS costs.

Table Of Contents

Problem Statement

The Gartner Approach

The Guidance Framework

  • Step 1: Internal Data Center Cost Calculations
    • Is the Comparison of Internal and External Cost a Key Factor in the Decision?
    • Does a Suitable Internal Cost Model Already Exist?
    • Can the Organization Build a Cost 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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