How Much is that Private Cloud?

By ServerWatch Staff (Send Email)
Posted Feb 24, 2010


While the idea of a "private cloud" has taken off, right now the technology is being defined by vendors, so all solutions are not the same and price tags vary. According to this report on Redmond Mag article, there is no shortage of vendors with an offering. IBM, Microsoft, VMware Inc., Amazon.com Inc., and smaller companies such as Rackspace US Inc. and open source providers such as Ubuntu are all offering (or will offer) private cloud solutions.


Everyone wants a private cloud, but the technology is not cheap.

"The Amazon option requires no up-front investment, but it does nothing to integrate current technology investments into a private cloud. This means the infrastructure is largely out of IT's control in the traditional sense. IT pros will also have to consider the sensitive information storage requirements of their applications to determine whether a hosted solution meets standards set by laws such as HIPAA or Sarbanes-Oxley. Cloud vendors such as Amazon have taken steps to address these worries, but the problems haven't necessarily gone away.

"Pricing for Amazon's VPC breaks down to usage and how much data is transferred. All data is transferred in for $.10 per gigabyte -- though Amazon is waiving that price until June 30, 2010). Transfer prices for outbound data are on a sliding scale, with the first 10TB coming at $.17 per gigabyte, the next 40TB at $.13 per gigabyte, the next 100TB at $.11 per gigabyte and $.10 per gigabyte after 150TB. The VPN connection is $.05 per hour. All of this does not take into consideration EC2 needs, which start at $.12 per hour for a standard "small" instance of a Windows Server out of the North Virginia location. Prices can go up to $4.36 per hour for a bigger, high-memory instance of a SQL Server in the California center."

Read the Full Story at Redmond Mag

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