What’s cheaper – cloud hosting or colocation services (placing the customer’s equipment in the premises of the provider)? Colocation services are less expensive, if you place the equipment. A recently conducted calculations can help you to compare these two types of services.
According to figures provided, equivalent service will cost 118.248 dollars and 70.079 dollars in the usual data centers.
As an example, If you go somewhere once in three months, it is cheaper to take a taxi. And if you do it daily, it is better to buy a car. All that matters is the work cycle. If the duty cycle of your equipment is up to 100%, then it makes sense to have its own infrastructure.
The working cycle is the percentage of time using a hardware resource. Maximum utilization of equipment is a major priority, but such arithmetic is less profitable for companies with a lower coefficient of hardware resources. And so a “cloud web hosting” platform will be more attractive.
Very few companies make full use of their equipment, in fact, the utilization ratio is in the range of 15 to 20%. A main advantage of Cloud Services is just that you only pay for actual services used.
Nevertheless, the analytical model gives additional data to companies engaged in finding the most profitable ways to deploy the growing infrastructure.
