Understanding the Deployment Cost of Cloud Computing Services for the Higher Education Institutions

Cloud Computing (CC) have been widely adopted in the educational institutions during the past decade, as the virtual infrastructures and shared architectures offer various work groups and parties to benefit from the solutions. With the emergence of cloud centric applications, various technologies have allowed institutions to gain a wide range of applications and services that are beneficial for both the educators and students. Furthermore, CC have allowed institutions to reduce storage costs and up-front commitment for computing infrastructure implementations. This study quantifies the components and parameters when deploying a HPC center and adopting a CC based facility. We investigate and identify the CAPital Expenses (CAPEX) and OPerating Expenses (OPEX) for the Total Cost of Ownership (TCO) of a HPC center within a higher educational environment. Furthermore, we discuss the software licensing models for CC which can be classified into the perpetual and subscription-based licensing model. In this study, we discuss the financial benefits and opportunities for utilizing a CC based computing infrastructure and HPC center. We propose a cost benefit framework for the in-house compute facility and CC that can help institutions and educational stakeholders when deploying a HPC facility or CC model.