{"id":1290,"date":"2009-04-21T00:00:00","date_gmt":"2009-04-21T00:00:00","guid":{"rendered":"http:\/\/otava.test\/are-data-centers-cheaper-than-cloud\/"},"modified":"2025-10-14T09:55:44","modified_gmt":"2025-10-14T09:55:44","slug":"are-data-centers-cheaper-than-cloud","status":"publish","type":"post","link":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/","title":{"rendered":"Are Data Centers Cheaper Than Cloud?"},"content":{"rendered":"

<\/span>A new report by McKinsey unveils new insights.<\/span><\/h4>\n

Is cloud computing more expensive that running your own data center<\/a>?\u00a0It can be for larger users, according to McKinsey & Company, which says that a typical corporate data center is more economical than Amazon\u2019s EC2\u00a0when measured in cost per CPU equivalent. McKinsey detailed its findings in\u00a0a report released today at the Uptime Institute\u2019s Symposium 2009 in New York, titled\u00a0\u201dClearing the Air on Cloud Computing.\u201d<\/p>\n

McKiney\u2019s\u00a0conclusion\u00a0runs counter to much of the messaging from the\u00a0cloud computing industry, which asserts that\u00a0running\u00a0applications in a\u00a0third-party data center\u00a0with usage-based pricing\u00a0offers better economics than building and operating a data center.<\/p>\n

The cost comparison is\u00a0one highlight\u00a0of a broadly skeptical report<\/a>, which says that cloud computing has tremendous promise, but the growing hype for the cloud could lead to\u00a0a \u201ctrough of disillusionment\u201d for large enterprise users.<\/p>\n

In the report<\/a>, McKinsey claims that while cloud computing has great potential, many of the claims being made about cloud computing have lead some to the point of \u201cirrational exuberance\u201d and unrealistic expectations<\/p>\n

\u201cCloud computing has shown great promise for start-ups and pet projects for large corporations,\u201d McKinsey writes. \u201cHowever, it is not ready to help with the big challenges of big companies. Cloud computing can divert attention IT departments\u2019 attention from technologies that actually deliver sizable benefits.\u201d<\/p>\n

One of the key findings is that cloud computing is approaching the top of the Gartner Hype-cycle – a cycle that explains how expectations tend to get over hyped by the early providers of the technology, the media and news outlets.\u00a0 Gartner currently has cloud computing entering the “peak of inflated expectations” phase of the hype curve.<\/p>\n

The report goes on to conclude that cloud computing is most attractive for small businesses and, in fact, most customers of clouds are small businesses.\u00a0 McKinsey also found that cloud computing services are generally not cost effective for larger enterprises running out of data centers.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new report by McKinsey unveils new insights. Is cloud computing more expensive that running your own data center?\u00a0It can be for larger users, according to McKinsey & Company, which says that a typical corporate data center is more economical than Amazon\u2019s EC2\u00a0when measured in cost per CPU equivalent. McKinsey detailed its findings in\u00a0a report released today at the Uptime Institute\u2019s Symposium 2009 in New York, titled\u00a0\u201dClearing the Air on Cloud Computing.\u201d McKiney\u2019s\u00a0conclusion\u00a0runs counter to much of the messaging from the\u00a0cloud computing industry, which asserts that\u00a0running\u00a0applications in a\u00a0third-party data center\u00a0with usage-based pricing\u00a0offers better economics than building and operating a data center. The cost comparison is\u00a0one highlight\u00a0of a broadly skeptical report, which says that cloud computing has tremendous promise, but the growing hype for the cloud could lead to\u00a0a \u201ctrough of disillusionment\u201d for large enterprise users. In the report, McKinsey claims that while cloud computing has great potential, many of the claims being made about cloud computing have lead some to the point of \u201cirrational exuberance\u201d and unrealistic expectations \u201cCloud computing has shown great promise for start-ups and pet projects for large corporations,\u201d McKinsey writes. \u201cHowever, it is not ready to help with the big challenges of big companies. Cloud computing…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"other_category":[],"class_list":["post-1290","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nAre Data Centers Cheaper Than Cloud? | OTAVA<\/title>\n<meta name=\"description\" content=\"Are data centers cheaper than cloud? Explore cost, performance, and scalability comparisons.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Data Centers Cheaper Than Cloud?\" \/>\n<meta property=\"og:description\" content=\"Are data centers cheaper than cloud? Explore cost, performance, and scalability comparisons.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\" \/>\n<meta property=\"og:site_name\" content=\"OTAVA\" \/>\n<meta property=\"article:published_time\" content=\"2009-04-21T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-14T09:55:44+00:00\" \/>\n<meta name=\"author\" content=\"Irma Brillantes\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Irma Brillantes\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\"},\"author\":{\"name\":\"Irma Brillantes\",\"@id\":\"https:\/\/www.otava.com\/#\/schema\/person\/35774075f8f4fcdd4eae80cb72034263\"},\"headline\":\"Are Data Centers Cheaper Than Cloud?\",\"datePublished\":\"2009-04-21T00:00:00+00:00\",\"dateModified\":\"2025-10-14T09:55:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\"},\"wordCount\":338,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.otava.com\/#organization\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\",\"url\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\",\"name\":\"Are Data Centers Cheaper Than Cloud? | OTAVA\",\"isPartOf\":{\"@id\":\"https:\/\/www.otava.com\/#website\"},\"datePublished\":\"2009-04-21T00:00:00+00:00\",\"dateModified\":\"2025-10-14T09:55:44+00:00\",\"description\":\"Are data centers cheaper than cloud? Explore cost, performance, and scalability comparisons.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.otava.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Are Data Centers Cheaper Than Cloud?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.otava.com\/#website\",\"url\":\"https:\/\/www.otava.com\/\",\"name\":\"OTAVA\u00ae\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.otava.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.otava.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.otava.com\/#organization\",\"name\":\"OTAVA\u00ae\",\"url\":\"https:\/\/www.otava.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.otava.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.otava.com\/wp-content\/uploads\/2025\/03\/otava-logo.svg\",\"contentUrl\":\"https:\/\/www.otava.com\/wp-content\/uploads\/2025\/03\/otava-logo.svg\",\"caption\":\"OTAVA\u00ae\"},\"image\":{\"@id\":\"https:\/\/www.otava.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.otava.com\/#\/schema\/person\/35774075f8f4fcdd4eae80cb72034263\",\"name\":\"Irma Brillantes\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/d5251bebc1699793a698d1a6158603cb3cdc50a095a12357e42d415b3e5546c2?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d5251bebc1699793a698d1a6158603cb3cdc50a095a12357e42d415b3e5546c2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d5251bebc1699793a698d1a6158603cb3cdc50a095a12357e42d415b3e5546c2?s=96&d=mm&r=g\",\"caption\":\"Irma Brillantes\"},\"url\":\"https:\/\/www.otava.com\/blog\/author\/ibrillantesotava-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Are Data Centers Cheaper Than Cloud? | OTAVA","description":"Are data centers cheaper than cloud? Explore cost, performance, and scalability comparisons.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/","og_locale":"en_US","og_type":"article","og_title":"Are Data Centers Cheaper Than Cloud?","og_description":"Are data centers cheaper than cloud? Explore cost, performance, and scalability comparisons.","og_url":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/","og_site_name":"OTAVA","article_published_time":"2009-04-21T00:00:00+00:00","article_modified_time":"2025-10-14T09:55:44+00:00","author":"Irma Brillantes","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Irma Brillantes","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#article","isPartOf":{"@id":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/"},"author":{"name":"Irma Brillantes","@id":"https:\/\/www.otava.com\/#\/schema\/person\/35774075f8f4fcdd4eae80cb72034263"},"headline":"Are Data Centers Cheaper Than Cloud?","datePublished":"2009-04-21T00:00:00+00:00","dateModified":"2025-10-14T09:55:44+00:00","mainEntityOfPage":{"@id":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/"},"wordCount":338,"commentCount":0,"publisher":{"@id":"https:\/\/www.otava.com\/#organization"},"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/","url":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/","name":"Are Data Centers Cheaper Than Cloud? | OTAVA","isPartOf":{"@id":"https:\/\/www.otava.com\/#website"},"datePublished":"2009-04-21T00:00:00+00:00","dateModified":"2025-10-14T09:55:44+00:00","description":"Are data centers cheaper than cloud? Explore cost, performance, and scalability comparisons.","breadcrumb":{"@id":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.otava.com\/blog\/are-data-centers-cheaper-than-cloud\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.otava.com\/"},{"@type":"ListItem","position":2,"name":"Are Data Centers Cheaper Than Cloud?"}]},{"@type":"WebSite","@id":"https:\/\/www.otava.com\/#website","url":"https:\/\/www.otava.com\/","name":"OTAVA\u00ae","description":"","publisher":{"@id":"https:\/\/www.otava.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.otava.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.otava.com\/#organization","name":"OTAVA\u00ae","url":"https:\/\/www.otava.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.otava.com\/#\/schema\/logo\/image\/","url":"https:\/\/www.otava.com\/wp-content\/uploads\/2025\/03\/otava-logo.svg","contentUrl":"https:\/\/www.otava.com\/wp-content\/uploads\/2025\/03\/otava-logo.svg","caption":"OTAVA\u00ae"},"image":{"@id":"https:\/\/www.otava.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.otava.com\/#\/schema\/person\/35774075f8f4fcdd4eae80cb72034263","name":"Irma Brillantes","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/d5251bebc1699793a698d1a6158603cb3cdc50a095a12357e42d415b3e5546c2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d5251bebc1699793a698d1a6158603cb3cdc50a095a12357e42d415b3e5546c2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d5251bebc1699793a698d1a6158603cb3cdc50a095a12357e42d415b3e5546c2?s=96&d=mm&r=g","caption":"Irma Brillantes"},"url":"https:\/\/www.otava.com\/blog\/author\/ibrillantesotava-com\/"}]}},"_links":{"self":[{"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/posts\/1290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/comments?post=1290"}],"version-history":[{"count":0,"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/posts\/1290\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/media?parent=1290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/categories?post=1290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/tags?post=1290"},{"taxonomy":"other_category","embeddable":true,"href":"https:\/\/www.otava.com\/wp-json\/wp\/v2\/other_category?post=1290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}