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An economic view of public vs. private cloud

Public vs. private cloud is a common debate among growing enterprises. Dell's Jim Ganthier takes an economic glance at cloud strategies.

There's a lot of misunderstanding when it comes to cloud, according to Dell's Jim Ganthier.

People continually discuss options in terms of public vs. private cloud. "We don't believe it's an 'or' statement," said Ganthier, vice president of engineered solutions and cloud at Dell. Rather, with the world moving toward hybrid clouds, it's an "and" statement.

Jim Ganthier, VP of engineered solutions and cloud, DellJim Ganthier

"If you're more than a 'test and dev' organization, if you're more than a startup, if you have aspirations to become either [a small to medium-sized business] or an enterprise, it's OK to start on public cloud," he said. But, as you grow up, you won't be able to keep up with the costs for a public cloud strategy. As the enterprise expands, the question of public vs. private cloud starts to dissolve.

Ganthier said that Dell was invited by a customer to analyze its cloud environment, including online processing of 3,500 transactions per minute. Taking various factors into account, including an average four-year lifespan for a typical server and public cloud fees "over a 60-month period, that client would have saved $600,000," Ganthier said.

With shifts in the cloud model, it's vital for developers to understand the types of workloads being used and the specifics of the desired outcome. They also need to understand the economics of public, private and hybrid cloud, and whether a managed private service makes the most business sense, he added.

Next Steps

Integration of cloud services

Hybrid cloud with public and private cloud

This was last published in September 2015

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