Infrastructure Cost Comparison 1000 VMs: On-Premise vs Hybrid vs Public Cloud

How do 3yr infrastructure costs for VMware compare between the following?:

• On-premises infrastructure 
• Hybrid Cloud with 50% of VMs using on-premise and 50% of VMs using Public Cloud
• Public Cloud VMware Cloud (VMC) on AWS - 3 year subscription

Lets say we need 1000 VMs with the average VM being:

• 2 vCPUs
• 8 GB  memory
• 200 GB storage @ 300 IOPS

Hence we need:

• 2000 vCPUs
• 8 TB memory
• 200 TB @ 300,000 IOPS

In the model  I have two different scenarios:

• Greenfields, completely new site for 1000 VMs
• Additional 100 VMs

	All On-Prem Infrastructure	Hybrid 50% On-Prem	Hybrid 50% Public Cloud	Total Hybrid	All Public Cloud
Greenfields 1000 VMs			VMC - $1,725,000	VMC - $1,725,000	VMC - $2,600,000
Facilities (assume on-prem only 4 racks!!!)	$360,000	$270,000	Included in VMC service	$270,000	Included in VMC service
Network (assume on-prem only $200K)	$200,000	$150,000	Included in VMC service	$150,000	Included in VMC service
Firewall (assume on-prem only $200K)	$200,000	$150,000	Included in VMC service	$150,000	Included in VMC service
Load Balancers (assume on-prem only $200K)	$200,000	$150,000	Included in VMC service	$150,000	Included in VMC service
Compute	$400,000	$250,000	Included in VMC service	$250,000	Included in VMC service
Storage	$250,000	$150,000	Included in VMC service	$150,000	Included in VMC service
SAN (assume on-prem only $100K)	$100,000	$75,000	Included in VMC service	$75,000	Included in VMC service
vSphere Licences and 3yr support	$180,000	$90,000	Included in VMC service	$90,000	Included in VMC service
Backup	$280,000	$140,000	$375,000	$515,000	$750,000
Staff Costs (assume 5 staff to support facilities, compute, storage, SAN, backup, vSphere, network, firewalls, load balancers)	$1,500,000	$1,200,000	Included in VMC service	$1,200,000	Included in VMC service
TOTAL 3 year cost	$3,670,000	$2,625,000	$2,100,000	$4,725,000	$3,350,000
Cost per VM/month (3yr commitment)	$102			$131	$93
Additional 100 VMs			VMC - $172,000	VMC - $172,000	VMC - $344,000
Facilities	No additional cost	No additional cost	Included in VMC service	No additional cost	Included in VMC service
Network	No additional cost	No additional cost	Included in VMC service	No additional cost	Included in VMC service
Firewall	No additional cost	No additional cost	Included in VMC service	No additional cost	Included in VMC service
Load Balancers	No additional cost	No additional cost	Included in VMC service	No additional cost	Included in VMC service
Compute	$50,000	$25,000	Included in VMC service	$25,000	Included in VMC service
Storage	$50,000	$30,000	Included in VMC service	$30,000	Included in VMC service
SAN	No additional cost	No additional cost	Included in VMC service	No additional cost	Included in VMC service
vSphere Licences and 3yr support	$40,000	$20,000	Included in VMC service	$20,000	Included in VMC service
Backup	$30,000	$15,000	$38,000	$53,000	$75,000
Staff Costs	No additional cost	No additional cost	Included in VMC service	No additional cost	Included in VMC service
TOTAL 3 year cost	$170,000	$90,000	$210,000	$300,000	$419,000
Cost per VM/month (3yr commitment)	$4.72			$8.33	$11.64

Conclusion from the above model:

• For 1000 VMs greenfields public cloud is lowest cost as legacy enterprise uses expensive "big brand" products, are inefficient and require vast number of people to support. 
• For additional 100 VMs  on-premises infrastructure is lowest cost as no additional cost for network, firewalls, load balancers, SAN and staff.
• Hybrid cloud is expensive as it still requires costs for for network, firewalls, load balancers, SAN and staff. 
• If possible hybrid cloud should only be an interim step to migrate to public cloud