By the end of 2023, Gartner estimates the worldwide public cloud use spending will reach nearly $600 billion. If their estimations are correct, it would be a 21.7% increase in spending from 2022.
Despite this significant spending, companies also still use private clouds to host their company data, and some companies even use both. This leads to the question of which is better: a public or private cloud?
While public clouds are becoming more popular and beneficial for companies looking to scale, private clouds still have advantages. In this article, we’ll detail the differences between a private cloud vs public cloud.
What Is a Private Cloud?
A private cloud is a data center hosted on the company’s infrastructure. Companies have complete control over this cloud and can ensure firewalls and secure protocols protect it. Larger companies like enterprises typically have these clouds because they’re the only ones with the infrastructure to support them.
While using private cloud providers is great, not every company can manage it. A company must have a team to ensure the private cloud is securely protected, managed, and supported. The private clouds will also need to be upgraded and replaced occasionally, which can be costly.
What Is a Public Cloud?
On the other hand, a public cloud is perfect for companies that don’t have the infrastructure to support a private cloud. Companies like Google Cloud and AWS are public cloud providers and host the cloud for companies to use.
Companies can use public clouds as a backup in case their private cloud fails, or they might use them to share data in multiple environments. The main benefit of using a public cloud is that the company won’t need an entire team to manage the cloud. However, one downside is that the organization isn’t in total control of the cloud.
A public cloud would be great for companies looking for:
- Supporting business continuity
- Outsourcing IT tasks
- Backing up archival data
- Offloading applications to lower latency
- Reducing the need for on-site infrastructure support
Difference Between Public and Private Cloud
The best way to understand the differences between a private cloud vs. public cloud is this: a private cloud is like listening to music from owned CDs versus streaming music on a shared site like Spotify or Apple Music.
One company will control its private cloud, and no one else can access it. However, a public cloud is one large service that companies will pay to rent space monthly. However, the term public can be misleading.
Even though the cloud might be public, that doesn’t mean that other companies can access another’s information and data. It’s still isolated and protected, but the infrastructure to host that cloud is outside of the company.
A perfect example of a public cloud is INDATA’s iPM Cloud. This cloud-based investment technology is based on a private-cloud architecture and is secure, private, and scalable. Investment managers can access this cloud anywhere while also alleviating resources from the IT, technology, and security teams.
Pros and Cons of Private vs. Public Cloud
Whether to go with a public cloud or private cloud provider will largely depend on the size of the company, its resources, and the infrastructure to support a cloud. Some companies don’t have the resources to manage it, and a public cloud is the best option. Some companies might choose to have both, using the public cloud as a backup in case the private cloud fails.
There are advantages and disadvantages to each option. Below, we’ll look more at some of these pros and cons.
Public Cloud
A public cloud provider costs less upfront than a private cloud would. Many providers offer a subscription model and offer flexible and customizable solutions. A public cloud also helps to save money on the resources needed for a private cloud, such as staff and infrastructure, making public clouds more scalable.
Cloud storage is virtually unlimited, and companies can upgrade to more storage if needed. However, with a private cloud, the scalability will largely depend on how many resources are available in-house. If companies are already using a back-office managed service, they might not have the resources to manage a private cloud either.
One of the disadvantages of a public cloud is less control over security. Security and compliance broadly fall on the provider, so for companies that are subject to compliance and stricter regulations, a private cloud might be a better option.
Private Cloud
With private cloud providers, businesses can fully control the cloud for their data. The private cloud could also perform faster since it is not a shared resource.
Additionally, while public clouds do provide some level of flexibility, private clouds are the most flexible option. Businesses can create the perfect private cloud solution that fits their needs and can update this cloud as their needs change.
However, with a private cloud, finding the absolute perfect fit might be difficult if companies are looking for something specific. It can also be more challenging to access the data from anywhere. A private cloud is accessible via the internet, making it available to anyone in the company.
The Future of Public and Private Cloud
As more companies look to do more with less, hosting private clouds may become less popular. They can be challenging for businesses that want to save resources, cut costs, and scale. However, the need to consider a private cloud vs. public cloud will continue as companies assess what makes sense for them.
Artificial intelligence (AI) also promises exciting innovation for public cloud technology. Generative AI allows public clouds to process data in real time, offering companies valuable insights. Now is the time for companies to find a public cloud solution that works for them.
INDATA excels in providing managed services, technology, and best-of-class software. Our technology is streamlined and easy to use. Thanks to our 20-plus years of business, we have deep subject matter expertise that allows us to serve a wide range of clients. To learn more about our software solutions, schedule a demo with us today.
