Role of utilization rate on cloud computing cost effectivness analysis

Beside financial indicators, IT cost benefit analysis is influenced by various technical parameters. This article explores influence of CPU utilization rate on lease vs. buy decision making process. The analysis utilizes existing cost models and testes functional dependencies on utilization rate. The article shows that only very high utilization rates can financially justify onpremise IT resources. Beside utilization rate there are other technical parameters which should be considered and this article shows possible ways of their interpretations.