Methods and systems to compute cost efficiency of virtual machines (“VMs”) running in a private cloud are described. Methods and systems compute a cost efficiency value for each VM in the private cloud based on cost of the VM in the private cloud, cost of similar VMs in the private cloud, price of similar VM running in the public cloud, and the cost of similar VMs running in one or more private clouds in the same geographical area. When the cost efficiency of a VM is greater than a cost efficiency threshold, the methods generate an alert and recommendations for moving the VM to a lower cost public cloud.