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For Infrastructure & Operations Professionals

File Storage Costs Less In The Cloud Than In-House

We Calculate A 74% Cost Reduction, But It's Hard To Compare Apples To Apples

August 25, 2011

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  • By Andrew Reichman
  • with Robert Whiteley III,
  • Eric Chi

Why Read This Report

There's a great deal of hype surrounding cloud delivery models of all flavors, with the assumption that it will usher in a new era of cheaper, better IT. But most I&O organizations struggle to compare the capital, operational, and staffing cost differences between internal and cloud storage. This document will break down the cost differences by modeling a common workload — file storage — built and deployed traditionally versus consumed through the public cloud. Our models reveal a significant cost difference, with the cloud-based model coming in 74% less expensive than I&O running it in-house. However, we encourage I&O leaders to use this document and the associated "Cost Analysis Tool: Cloud Versus Internal File Storage" Excel workbook as a tool and methodology for comparison. Customize the tool with numbers from your own environment and make a better decision as to whether cloud file storage makes sense in your business technology environment.

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Tools And Templates

Models and Calculators

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  • It's Easy To Get An Incomplete And Incorrect Comparison Of Cloud And Internal Storage
  • Traditional File Storage Systems Are Expensive To Buy And Run
  • Cloud Storage Is More Straightforward And A Lot Cheaper Than Traditional Storage
  • A Gateway Can Make Cloud Storage More Viable, But Also More Expensive

Table of Contents

  • Cloud Storage Is Workload-Specific
  • Quick Storage Comparisons Don't Measure Storage Costs Effectively
  • An Accurate Comparison Requires A More Detailed Model

  • Cloud Storage Offerings Are Still Developing: Use Caution
  • Related Research Documents