When are private clouds cheaper than the public cloud?

Colovore’s high density colocation facility is covered by NetworkWorld in a review of a white paper jointly published with OpenStack cloud management software firm Piston Cloud Computing, network virtualization vendor Plexxi and King Star Computing.

NetworkWorld’s analysis has these key quotes:
A report from the vendors – which include a collocation provider, a cloud management vendor and a network operator – attempts to address a question many organizations may be considering: When is it better to use a public cloud versus a managed hosting or collocation environment? The case study finds that if an organization is spending more than $7,644 in Amazon’s cloud each month, then it can be cheaper to operate a private cloud.

Analyst Lee Doyle of Doyle Research says it’s good for companies that are spending a lot of money on the public cloud to consider if there’s a more cost effective way to run their workloads, including potentially bringing them in-house. Around $7,000 on public cloud spend is enough to consider exploring other options, depending on the size of the company.

For the full article: http://www.networkworld.com/article/2825994/cloud-computing/is-there-a-point-where-a-private-cloud-is-cheaper-than-the-public-cloud.html (PDF)