The ISG Cloud Comparison Index™ is the first benchmarking study that compares the cost of running applications and workloads on internal information technology (IT) platforms with the cost of running those same applications and workloads in the public cloud.

1. ISG Cloud
Comparison
Index™
OCT
2015
Cost of public cloud Linux is
highly competitive with internal IT
But prices differ sharply among providers, and
enterprise-class systems cost more to run
Buyers with highly utilized
workloads running on
cloud Linux would be wise
to shop around.
Beware of the significant price difference
between cloud Linux and running
enterprise-class operating systems
in the cloud.
At 100% usage, the highest-cost
option for public cloud Linux is
Internal IT is 29%
cheaper than the
lowest-cost option.
40%
The cost of running a
Windows Server configuration
in the public cloud differs
significantly by provider.
Running a configuration on
Red Hat Enterprise Linux in
the cloud has the least variability
in cost among the options analyzed.
At 100% usage, the highest-
cost option for running a
Windows configuration in the
public cloud is
more expensive
than the lowest-
cost option.
%
These entreprise-class systems are
cheaper to run than internal IT only
when usage is below 57%.
Running Windows Server or
Red Hat Enterpise Linux can cost up to
more than
public cloud Linux.
more expensive
than the lowest-
cost option.
When public cloud Linux instance usage is less than 78%,
internal IT costs can't compete.
78%
Comparing public cloud Linux
with internal IT, the break-even point is
instance usage for the
configuration we analyzed.
33%
43
Public cloud Linux is the most
cost-effective option, but users
sacrifice the support, reliability
and features that come with
enterprise-class systems.
At same usage, internal IT is only 4% cheaper
than the lowest-cost public cloud Linux option.
There is a
%
At 100% usage, the spread
between highest- and lowest-
cost provider is only
But internal IT is still
47% cheaper than
the lowest-cost option.14
%
difference in cloud
Linux pricing from
highest to lowest
at 100% usage.
To view the full ISG Cloud Comparison Index™
CLICK HERE
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The ISG Cloud Comparison Index™ compares the cost of running workloads on internal IT platforms versus the public clouds of Amazon Web Services, Google Cloud
Platform, Microsoft Azure and IBM SoftLayer. Internal cost data is from ISG’s proprietary database; public cloud pricing is from ISG partner Gravitant.
1. Cloud isn't always cheaper;
higher usage favors internal IT,
lower usage favors public cloud.
2. Avoid thinking of public cloud only as a
way to reduce costs; think instead of
using it to avoid the high costs of
volatile workloads.
3. Applications with the most variable
usage are the strongest candidates to
move to the public cloud.
4. Running an application on the provider's
cloud - keeping in mind usage patterns
and tech requirements - is the only way to
identify the lowest-cost option.
Four Pillars of
Public Cloud Pricing