Private vs Public Cloud: The Insider's Handbook

Sep 30, 2024

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If your business is considering moving to the cloud, you have several options. Public cloud and private cloud are two of the most common solutions companies use when porting data, apps, and operating systems to a cloud model.

Both options deliver services over the internet using a secured connection.

What is a Public Cloud?

Public cloud solutions are the most common. The resources provided in the cloud, such as servers, storage, and access, are managed by a third-party provider. Amazon’s AWS, Microsoft Azure, and Google Cloud are three of the biggest and best-known providers.

In a public cloud, the hardware, software, and infrastructure are owned and operated by the third-party provider. Those assets, including storage and network devices, are shared by all the organizations that are contracting to use them. These clients frequently are referred to as tenants.

Typically, businesses use public cloud solutions for storage, web-based email applications, other common office apps, and for testing and development of applications they create.

What is a Private Cloud?

A private cloud is often referred to as a data center. It is a deployment where one organization has exclusive use of the cloud environment.

Private clouds may be operated on a company’s own, physically located on the organization’s premises. It also can be hosted by a third-party provider.

The key to a private cloud is the singularity. If your organization is on a private cloud, the services, infrastructure, and applications are only used by your company. Hardware and software are exclusively yours.

With a private cloud, you can create specific IT configurations, security precautions, and customizations. This control is popular with organizations such as government agencies and financial institutions or others where there is a greater need for security, controls, and regulatory compliance. Many mid- and large-sized organizations also use private clouds to have more operational control.

Pros & Cons of Public Clouds

Here are some of the major advantages of a public cloud:

Cost. Using public cloud typically means lower IT costs because organizations do not need to pay for and maintain servers and other infrastructure.
Reliability. Workloads can quickly be moved from one server to another if there is a mechanical failure or operational issue.
Focus. With fewer resources committed to IT, companies can focus on core business priorities.

Among the disadvantages of a public cloud are:

Vendor Reliance. With a public cloud, your organization relies on the cloud vendor to maintain business operations.
Migration. The process of migrating data and systems to the public cloud can be time-consuming and require major personnel and financial resources. Fortunately, this issue is temporary.
Security. While most public cloud providers have rigorous cybersecurity practices to monitor and respond to threats, the customers are ultimately responsible for securing data, applications, operating systems, and workloads.

Pros & Cons of Private Clouds

Private cloud advantages include:

Privacy. As the single tenant, you have complete control over what is stored in the private cloud and who can access that information.
Customization. With a private cloud, you control the way your cloud is configured and operates to meet your organizational needs.
Performance. Because your organization is the sole user, you can generally expect better performance rates.
Flexibility. As your business needs evolve, you can reconfigure the private cloud environment to operate as needed.
Security. You will have the chance to build a comprehensive security solution that meets all your regulatory obligations and provides you with peace of mind.

Among the disadvantages of a private cloud are:

Cost. You will be responsible for all the upfront and ongoing costs related to your private cloud deployment, whether operating it yourself or using a third-party.
IT Obligations. Onsite private cloud configurations require staff, equipment, space, and cooling to ensure that the technology operates effectively.
Remote Access. As more work is done remotely, older private clouds may not be configured to meet those expectations, without the functionality required by today’s workforce.

Key Differences Between Public & Private Clouds

There are several notable differences between public and private clouds:

Cost. Public clouds are typically much cheaper to manage, often using a pay-as-you-go model with a third-party provider. Private clouds require significant upfront infrastructure costs and ongoing maintenance, staffing, and security expenses.
Scalability. When you need to change how much cloud usage you have, a public cloud is a better option, with subscription models that provide greater flexibility. With a private cloud, you will need to acquire, install, and maintain additional infrastructure or, if downsizing, run with excess capacity.
Bandwidth. With private clouds, you’re only dependent on the internal resources running on the infrastructure. In a public cloud, the public internet is used for functionality.
Access. In a public cloud, infrastructure is shared across multiple organizations while in a private cloud, a single organization has access.
Location. Public clouds are hosted at remote locations typically not close to your organization. In a private hosted space, the infrastructure is on-premises.

When to Use Public vs Private Clouds

When it comes to private vs public cloud, it’s often a matter of need.

With private cloud configurations, control is paramount. You can control who has access to data and systems. You can implement strict security guidelines and technologies beyond what is offered in a public cloud.

Typically, private clouds are used today by organizations with highly sensitive work and data or those that are subject to strict regulatory compliance standards.

Public clouds, on the other hand, are ideal for companies with widely distributed workforces or who need more affordable technology options.

Can You Use Both Public & Private Clouds?

Using both public and private cloud solutions is very feasible. Often, companies will opt to place sensitive data in a private cloud with higher security standards and controls. Common business applications such as word processing, spreadsheets, and email may be in a public cloud. Using both cloud solutions is a smart option for many companies.

Deployment Options

Cloud deployment is the process used for hosting applications in the cloud. It includes the following methods:

Software-as-a-Service (SaaS). Software licensed and accessed online by authenticated users
Platform-as-a-Service (PaaS). Used for developing, testing, operating, and managing applications
Infrastructure-as-a-Service (IaaS). On-demand computing services including computation, storage, networking, and virtualization

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