In a recent article, I argued that when IT deployments reach a certain size, colocation is the most cost-effective infrastructure option. Supporting that argument is a new report from 451 Research, which shows that private clouds often have a lower total cost of ownership than public cloud platforms.
A private cloud is a cloud platform built on private infrastructure, infrastructure under the control of a single organization. Public cloud platforms, in contrast, are multi-tenant: many organizations launch cloud servers on the same underlying bare metal infrastructure and none have insight into or control over the physical layer.