How a Managed Private Cloud Can Save You Money: Real Numbers You Can Trust

When it comes to cloud computing, public cloud gets a lot of attention. It’s flexible, fast, and lets you spin up resources instantly. But for many companies, it can also get really expensive, especially if your workloads are predictable or you have strict security needs.

That’s where a managed private cloud comes in. Think of it as the best of both worlds: the control of your own data center with the ease of a cloud service. And the best part? Many companies are seeing real cost savings and high ROI when they switch.

Why You Should Care About ROI

ROI, or Return on Investment, is all about getting more value than you spend. Public cloud is great for some situations, but it can surprise you with hidden costs:

• Extra charges for data transfer
• Licensing fees for enterprise software
• More staff needed to manage complex workloads

A managed private cloud can cut these costs, make spending predictable, and give your team more time to focus on important projects instead of managing servers.

What the Numbers Say

Recent studies and vendor reports show:

• VMware Cloud Foundation: Companies using this managed private cloud saw millions in savings from reduced operations costs and faster deployment.
• HPE GreenLake: Customers reported up to 50–60% savings on certain workloads compared to public cloud, thanks to predictable costs and efficient resource use.
• Cloudera Public Cloud: For some analytics workloads, public cloud still wins—but you need to match the right cloud to the right workload.

The key takeaway: private cloud isn’t always cheaper than public cloud, but for steady, predictable workloads, it often saves a lot of money.

Comparing Total Cost: Public vs Private vs Hybrid

When deciding which cloud makes sense, look at Total Cost of Ownership (TCO). TCO includes everything you spend over 3–5 years:

• Infrastructure costs (servers, storage, network)
• Software and licensing fees
• Staff or managed services
• Support, compliance, and risk-related costs
• Migration or implementation costs

Here’s an example snapshot (for illustration only):

Note: These numbers are examples. Your actual savings depend on your workloads, licenses, and usage patterns.

Who Should Consider Managed Private Cloud

A managed private cloud works best if you:

• Run large, steady workloads
• Have high licensing costs
• Need strong compliance or security controls
• Want predictable costs and fewer staff managing servers

If your workloads are highly variable or short-term, public cloud or a hybrid setup may still be the better choice.

How to Prove ROI to Your Boss

1. Pick 2–3 workloads to analyze.
2. Build a 3–5 year TCO model including infrastructure, software, staff, and support costs.
3. Ask vendors for TEI (Total Economic Impact) reports or pricing examples.
4. Run a small pilot to measure costs and performance.
5. Include business benefits like faster time-to-market, reduced risk, and compliance gains.

Final Thoughts

There’s no one-size-fits-all answer. The right cloud depends on your workloads, licensing, and security needs. But managed private cloud offers a middle path: predictable costs, control, and measurable ROI.

Ready to See Your Savings?

Get a personalized ROI estimate and see how much a managed private cloud could save your company.

Talk to our cloud specialists to scope a pilot or build a custom TCO model.