Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

Public Cloud or Private Cloud – more than just the cost…

Posted on: 14 August '14

I read this blog post by Brad Feld, it discusses among other things the point at which the cost of the Public Cloud no longer makes sense, and the number mentioned is $200K / month.

Many of our prospects are engineering teams within Enterprises. These teams are in the process of setting up environments that can be used by their teams for development / testing purposes. These prospects typically ask us whether it is better to buy hardware and set up the environment on premise or if it’s better to use Amazon / Azure etc.

While there are always questions on whether it is secure to host in the Public Cloud, the topic of discussion quickly turns to the cost.

We typically ask the following questions to help decide:

  1. Are the workloads constant or do you see spikes?
  2. Do you require your teams to access these workloads from within the company networks and outside?
  3. Do you already have lab or data center space?
  4. Have you already invested in hardware?

If the workloads are spiky – as you would see with a load testing setup or with production workloads, then the preference is the Public Cloud. If the workloads are constant (like developer workspaces or a regression test setup etc…) then an on premise setup is better.

If it is required for the teams to access their workloads from everywhere – within and outside of the company networks, then it is preferable to do it on the Public Cloud.

If the teams already have hardware that can still be used for setting up a self-service solution or a private cloud and there is lab space available, then it is preferable to go with the on premise setup rather than a public cloud.According to the blog post, $200K / month is a good number to check on getting the workloads on premise. It may be interpreted as anything less than that is good for the Public Cloud. I think that this is not a good rule of thumb. Even in cases where the infrastructure expenditure is less than $200K / month, it is better to answer the questions listed above before taking the call.

What are the views of the readers?

Giridhar LV

Giridhar has been in the IT industry for more than 17 years. He is currently the head of VMUnify - a solution that Enables Unified Clouds. Prior to Mindtree he has worked in Novell India. In his career he has led teams that have developed Backup and Recovery Solutions for Windows / Linux and NetWare; NFS Gateway development for NetWare and bed side ECG monitor development. His areas of interest included Virtualization, File Systems, Operating Systems and Entrepreneurship. He is also an author of 2 patent pending applications.