(Posted by Mona Masghati)
In the emerging business model and technology known as cloud computing, there has been discussion regarding whether a private solution, a cloud-based utility service, or a mix of the two is optimal. My analysis examines the conditions under which dedicated capacity, on-demand capacity, or a hybrid of the two are lowest cost. The analysis applies not just to cloud computing, but also to similar decisions, e.g.: buy a house or rent it; rent a house or stay in a hotel; buy a car or rent it; rent a car or take a taxi; and so forth.
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