Public Cloud versus Private Cloud

Public Cloud versus Private Cloud

Companies are leveraging the benefits of the public cloud to increase their effectiveness and efficiency. In the infrastructure-as-a-service (IaaS) segment, Amazon Web Services (AWS) is providing companies with six key benefits. They include: 1) Going global in minutes; 2) Increasing agility, innovation and speed; 3) Lowering costs to less than you could do on your own; 4) Moving scarce resources from undifferentiated work to high-value activities; 5) Scaling up and down as needed to match capacity with demand; and 6) Shifting capital expense to variable expense.

None of the six key benefits above exist in the private cloud for infrastructure. So, why are companies still positioning the private cloud? Companies like AWS are providing IaaS via a high volume, low margin business model, which is very disruptive to the status quo. Old guard companies are used to realizing 60%-80% margins (high margin, low volume). These companies are continuing to position private cloud offerings to defend their existing business and profits. Below is a simple breakdown of the key differences between public and private clouds.

Public Cloud versus Private Cloud

It used to be that IT leaders believed private clouds addressed the top concerns of public clouds; i.e., data control, enterprise security and regulatory compliance issues. While those beliefs still exist today, they are fading because public cloud providers offer enterprise-grade compliance, data privacy/protection and security. In addition, for companies that want or need a hybrid environment, public cloud providers like AWS integrate with on premise IT via direct connect, VPC, etc. Net: If you not leveraging the public cloud, you are operating at a significant disadvantage.

All contents copyright © 2013, Josh Lowry. All rights reserved.


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