Microsoft Corporate Strategy Group has released a new whitepaper, "The Economics of the Cloud", which details underlying the economics driving IT's shift towards the cloud.
"In the paper we also discuss how economics impact public clouds and private clouds to different degrees and describe how to weigh the trade-off that this creates. Private clouds address many of the concerns IT leaders have about cloud computing, and so they may be perfectly suited for certain situations. But because of their limited ability to take advantage of demand-side economies of scale and multi-tenancy, we believe that private clouds may one day carry a cost that's as much as 10x the cost of public clouds.
The conclusions of this paper are a powerful motivator behind Microsoft's commitment to the cloud."
Download: White Paper (PDF)