Are Public Cloud Solutions Really Cheaper? Cost Analysis Findings from the Migration Project of a Large-Scale Governmental Organization

This study investigates whether cloud provider solutions offer cost advantages over private cloud infrastructures in large-scale government settings. Focusing on the case of Greek Governmental Cloud (GCloud), we conduct a comprehensive cost comparison across three deployment models: the existing on-premise infrastructure, an IaaS cloud provider solution and a PaaS cloud provider solution. The cost analysis considers a five-year operational time window and uses real procurement data and updated discount policies. We take into consideration that the organization already has data center infrastructure and explores the migration options to cloud provider solutions. The cost analysis findings show that although provider solution can match or slightly undercut on-premise costs under specific conditions where agility is important, there is no financial advantage regarding standard operation needs. This real-world case study of the Greek Government Cloud highlights that cloud migration decisions for large organizations, with existing IT infrastructures, should be taken after thorough cost evaluation, accurate workload analysis, and a deep understanding of dynamic pricing models. Moreover, this study offers practical recommendations to decision-makers that navigate complex infrastructure choices. While infrastructure choices involve factors such as performance, security, and operational flexibility, this study intentionally focuses solely on the cost, aiming to provide a clear and quantifiable economic comparison. In general, this study aims to open a discussion about whether Cloud solutions are a panacea, especially in government settings.