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Public vs Private vs Hybrid Cloud: Differences and What’s Best for Your Business?

As businesses continue to migrate to cloud solutions, the decision between public, private, and hybrid cloud infrastructures becomes increasingly pertinent. With each type offering distinct benefits and challenges, understanding the differences is crucial for making an informed choice that aligns with your business needs.

Public vs private vs hybrid cloud

Below, we’ll take a look at these questions in an attempt to help organisations that are still in the process of choosing the best solution for their business, but in a nutshell:

Public cloud is a cloud computing model in which the services and infrastructure are provided by a third-party provider and accessible to the public over the internet.
Private cloud is a cloud computing model in which the services and infrastructure are dedicated to a single organisation for their exclusive use.
Hybrid cloud is a cloud computing environment that combines both public and private cloud services, allowing organisations to leverage the benefits of both while maintaining control over their data and applications.

Public Cloud: Cost-Effective and Scalable

Public cloud is the most widely known solution of the three listed here. According to Flexera's State of the Cloud Report 2024 51% of all workloads are in the public cloud today, with an additional 7% expected in the next twelve months.

The public cloud is a popular choice for many businesses due to its cost-effectiveness and scalability. Managed by third-party providers like Amazon Web Services (AWS), it allows companies to use computing resources over the internet, paying only for what they use. This model eliminates the need for significant upfront investment in physical infrastructure, making it an attractive option for businesses looking to minimise costs.

Before the rise of cloud computing, a company in need of more storage or more computing power would need to purchase physical infrastructure (e.g. servers, cabling, power) as well as the technical support needed to back up those additional resources. Public cloud, on the other hand, is typically pay-as-you-go. In the situation described above, the company could simply purchase more storage or computing power through their cloud service provider, giving them a similar end result in a fraction of the time at a fraction of the cost.

Data in a public cloud deployment is logically separated from other users in the cloud, but still all technically housed on the same network, and usually the same physical hardware. This differs from an on-premises solution where data would be physically separated.

Public cloud is extremely scalable and relatively inexpensive, but is technically less secure than the private cloud or colocation because your data occupies the same space as other users. When proper precautions are taken, however, the public cloud is much more secure than many people realise.

What are the advantages of Public Cloud?

Low Entry Costs: With a pay-as-you-go model, public cloud services are accessible without a large initial investment.
High Scalability: Resources can be adjusted quickly and easily to meet changing demands.
Speed to Market: Deployment can be rapid, often within hours, facilitating faster project launches and updates.

What are the disadvantages of Public Cloud?

Security Concerns: Shared resources mean data is housed on the same physical hardware as other users, potentially increasing vulnerability.
Compliance Issues: Meeting specific compliance requirements can be challenging in a public cloud environment.
At times, difficult to manage: though not unique to public cloud deployments, public cloud does still need management. In fact, IDC estimates that 50% of U.S. organisations lack the headcount for effective cloud management. If your organisation isn’t structured for it, managing a public cloud deployment can be tedious and time-consuming.

With the public cloud under our belts, next, let's move to the private cloud.

Private Cloud: Secure and Controlled

A private cloud offers dedicated infrastructure for a single organisation, either managed on-premises or hosted by a data centr e.

The obvious benefit of private cloud over a public cloud deployment is security. The business operating the private cloud has complete ownership, control, and maintenance of all the data within the private cloud environment. This is advantageous to companies that have stringent compliance requirements or other concerns about the security of their data.

Enterprises have a few options when deploying a private cloud. While some enterprises choose to purchase their own resources and manage them in their own data centre, many more companies deploy private clouds with cloud service providers. In the latter situation, the cloud service provider offers a user fully dedicated hardware, shared hardware, or some combination thereof. So-called “virtual private clouds” use shared hardware, while fully-dedicated hardware more closely mimics an enterprise purchasing and managing its own resources.

Deploying a private cloud within your own data centre means that you’ll be faced with many hardware, software, and architectural decisions, as well as challenges pertaining to resources and different skill sets. Colocation data centres provide an ideal solution for organisations looking to deploy a private cloud without the hefty investment and complexities of building and managing their own data centre. By renting space in a colocation facility, businesses can enjoy the benefits of a private cloud—such as enhanced security and control over their IT infrastructure—while also leveraging the advanced facilities, robust security measures, and high bandwidth provided by the colocation provider. This arrangement not only reduces capital expenditure but also allows organisations to focus on their core business operations, with the assurance that their data is securely housed and maintained in a professionally managed environment.

What are the advantages of Private Cloud?

Enhanced Security: Data is stored within a controlled environment, reducing the risk of unauthorised access.
Customisation: Infrastructure can be tailored to meet specific business needs and compliance requirements.
Control: Organisations maintain control over their environments, which can be crucial for meeting industry-specific standards.

What are the disadvantages of Private Cloud?

Higher Costs: Initial setup and ongoing management of a private cloud can be costly, especially if managed in-house.
Resource Intensive: Requires significant investment in hardware and expertise to manage and maintain.

Which brings us to the final option: the hybrid cloud.

Hybrid Cloud: Flexibility and Balance

Think back to the overviews of private cloud vs public cloud above. A public cloud is scalable and quick-to-market, while a private cloud, managed internally, is more secure but less scalable. Unsurprisingly, hybrid cloud environments combine the benefits of both public and private clouds by allowing data and applications to move between them. This flexibility makes hybrid cloud an ideal solution for businesses that need to keep certain data secure on-premises while leveraging the scalability of public clouds for less sensitive operations.

A business, for example, could keep its sensitive data on-premise or in a colocated data centre, then deploy resources on the public cloud when it needs computing power quickly. Alternatively, it could host the majority of its resources in a public cloud environment and only use colocated space in a data centre for those few things that must remain fully separated.

What are the advantages of Hybrid Cloud?

Versatility: Businesses can keep critical data secure in a private environment while enjoying the scalability of public cloud for other tasks.
Cost Efficiency: By allocating resources between public and private clouds, companies can optimise costs based on their specific needs.
Strategic Flexibility: Allows for a phased approach to cloud adoption, adjusting the mix of solutions as business needs evolve.

What are the Disadvantages of Hybrid Cloud?

Complexity: Managing a hybrid environment can be complex, requiring robust systems and expertise.
Integration Issues: Ensuring seamless operation between public and private components can be challenging.

Choosing the Right Cloud Solution: Public Cloud vs Private Cloud vs Hybrid Cloud

The decision between public, private, and hybrid cloud should be based on specific business requirements:

Public Cloud is ideal for businesses looking for flexibility, cost efficiency, and ease of use, particularly when security and compliance are less of a concern.
Private Cloud suits organisations that prioritise security and have specific regulatory compliance needs.
Hybrid Cloud offers a balanced solution for businesses that require both security and scalability, providing a flexible and cost-effective environment.

Ultimately, there is no one-size-fits-all answer when it comes to choosing between public, private, and hybrid clouds. Each business must assess its unique needs, considering factors like data sensitivity, regulatory requirements, and scalability needs, to determine the most suitable cloud deployment model.

For more insights into which cloud model fits your business needs, or to explore the cloud solutions we offer, feel free to reach out through our contact page or connect with us on social media. We’re here to help you navigate your cloud journey.

Frequently asked questions

Which is an example of hybrid and private cloud?

An example of a hybrid cloud could be a company that stores sensitive customer data on a private cloud and uses a public cloud for non-sensitive operations like email and document sharing.

An example of a private cloud is a company setting up its own data centre and infrastructure to host and manage its own cloud services and resources solely for internal use.

What is hybrid cloud computing?

Hybrid cloud computing is a combination of both public and private cloud infrastructure. It allows organisations to leverage the benefits of both types of clouds, such as scalability and cost-effectiveness of public clouds, and the security and control of private clouds.

Is Azure a private cloud?

Azure is a public cloud platform offered by Microsoft. It is not a private cloud as it is owned and operated by Microsoft, which makes it publicly accessible to users.

Which cloud is better public or private?

The choice between public and private cloud depends on the specific requirements and priorities of the organisation. Public clouds generally offer more scalability, cost-effectiveness, and accessibility, while private clouds provide greater control, security, and customisation. The decision should be based on factors like data sensitivity, regulatory compliance, resource demands, and budget constraints.

Should I use private or public cloud?

The decision to use private or public cloud depends on several factors such as data sensitivity, compliance requirements, resource demands, budget, and specific business needs. Organisations should evaluate their requirements and priorities to determine which type of cloud is more suitable for their needs.

What is the difference between public, private, and hybrid cloud?

Public Cloud: Services and infrastructure are provided off-site over the Internet and shared across multiple users.
Private Cloud: Services and infrastructure are maintained on a private network for the exclusive use of a single organisation.
Hybrid Cloud: Combines both public and private clouds, allowing data and applications to move between the two environments.

Which cloud model is the most secure?

Private clouds offer the highest level of security and control, making them ideal for organisations with stringent regulatory compliance needs or sensitive data. However, hybrid clouds can also provide robust security by allowing sensitive data to be kept on a private cloud while other data is processed in the public cloud.

How do I choose the right cloud solution for my business?

Consider your business’s specific needs such as data sensitivity, compliance requirements, scalability needs, and budget. Public clouds are generally more cost-effective and scalable, private clouds offer more control and security, and hybrid clouds provide a balance of both. Assessing these factors will help determine the most suitable cloud deployment model for your organisation.

Can I switch from one cloud model to another?

Yes, businesses can switch between cloud models as their needs evolve. Many organisations start with public clouds due to lower costs and easier setup, then migrate to private or hybrid models as they grow or as their needs for security and control increase.

What are the main benefits of using a hybrid cloud model? Hybrid clouds offer flexibility, cost-efficiency, and scalability. They allow businesses to manage sensitive data securely in a private cloud while taking advantage of the computational power and cost-effectiveness of the public cloud for less sensitive tasks. This model also supports a phased approach to cloud adoption, accommodating changing business needs over time.

How does a colocation data centre support private cloud deployments?

Colocation data cents offer space, power, cooling, and physical security for the server, storage, and networking equipment of other firms. By utilising a colocation data centre, organisations can deploy their private clouds without the need to invest in physical infrastructure, while still maintaining control over their private cloud environment. This setup helps reduce capital expenditures and operational costs while providing the benefits of a private cloud.