Amazon AWS have had 42 price reductions. The giant three cloud companies (Amazon, Microsoft, Google) have economies of scale that will make it impossible for even a well funded IT department to compete, especially when you factor in the risk associated with the CapEx required for private cloud.
Google threw down the gauntlet, and committed to have cloud costs follow Moore’s Law.
Private cloud can not compete on cost, yet can bring bring agility to an organization faced with either technical constraints (latency, quantity of data, specialized hardware), legal constraints (country jurisdictions, industry regulations), or organizational challenges (stepping stone to public cloud, internal resistance, leveraging existing investments).
EC2 Compute:
S3 Storage:
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