However, analysts say it’s difficult to put an exact dollar figure on when a private cloud will be more cost effective than a public cloud; there are just too many factors to consider, says IDC analyst Melanie Posey.

“It’s very hard to make sweeping statements,” she says. Issues such as the type of workload that is being run, how much the infrastructure is being used, how highly available it has to be, if regulatory or compliance issues need to be addressed and if there are any performance or latency issues are all factors that could influence the costs. “These issues all come together in figuring out whether cloud is more cost-efficient than traditional collocation or hosting.”

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