Choosing a Cloud to Suit your Business: Assessing the Benefits of Public, Private and Hybrid Cloud

Some companies choose to employ a mix of outsourced computing and networking services with in-house resources, known as hybrid cloud. This allows businesses to take advantage of the scalability and cost-effectiveness of a public cloud computing environment without exposing data to third party vulnerabilities.

A key benefit is the spread of risk as many companies feel that by storing data and running applications in multiple areas, this protects against the risk of downtime or data loss. This article will discuss the advantages and disadvantages of both public and private cloud computing, while also examining the reasons why companies choose to select the hybrid cloud approach.

Assessing the Benefits of Public and Private Cloud Computing
The main difference between a public and private cloud is that while private clouds are built from software that runs on hardware within an organisation, public clouds are provided by third parties who host and manage the system externally. There are a number of advantages and disadvantages to both, which often means that a combination of the two is selected, known as the hybrid cloud approach.

The use of private cloud requires an upfront investment due to the hardware that is needed to run the software. However this is significantly less than traditional data management systems in which all data is stored and accessed from physical storage as in the case of private cloud, one physical server provides access to a number of virtual servers. This saves both money and space in the office environment. In addition to this, as the hardware is on-site, companies often feel that they have more control over their data as they have the responsibility to monitor it.

Furthermore, private cloud is deployed inside the firewall on an organisation's intranet, meaning that transfer rates are usually increased. Read access can be as fast as 100mbps, improving productivity and the user experience.

That said, private cloud computing is subject to a number of shortcomings. Unlike public clouds that are handled off-site, private clouds require hardware, maintenance personnel and a system administrator to manage the system, creating additional costs. Further costs are added as adequate power and cooling of the system is necessary.

One major concern associated with private clouds is that there is a risk of physical damage to the unit when it is hosted on-site. For example, fires, power surges and water damage can all result in data loss, while theft is also an issue. In contrast, public cloud services are typically hosted within secure data centres where the premises and the data is monitored 24/7 by engineers to eradicate any issues. Secure firewalls are also in place to protect against data corruption.

Further to this, one of the key benefits of utilising a public cloud is that the IT infrastructure and storage capacity is easy to scale up or down depending on a business’s requirements at any given time. There is no need for Capital Expenditure (CAPEX), removing the requirement for large upfront costs and making it easier for businesses to implement. The operating expenditure (OPEX) model also helps with ongoing budget planning. Companies can customise their clouds with specific storage parameters and security options so that they only pay for what they need.

Public cloud systems take the time burden out of computing as things such as technology updates and alterations to hardware or software configurations can all be dealt with by an external provider. This keeps downtime to a minimum and reduces any disruption to business operation.
One disadvantage of public cloud is that while initial cost savings are made by reducing the need to invest upfront, there is little capital gained. Owning items such as servers and network equipment can pay off for businesses in the long run due to assets and tax advantages.

Hybrid Cloud: The Best of Both Worlds?
A hybrid cloud is a composition of at least one private cloud and at least one public cloud, which involves the combination of both in-house and outsourced resources. Although some companies would recommend the migration of operational data to the cloud, many others find the hybrid approach of keeping the data local and the analytical processing in the cloud to be more practical.

Many companies currently use public cloud services to archive data, while in-house storage infrastructure is used for customer data being used on a daily basis as there is a perception that it is easier to access. If more companies are to use public cloud to store day-to-day data, there is a need for providers to offer clear data extraction policies to ensure that it is no more difficult to extract data from the cloud than it is to take data from traditional physical racks in data centres.

Public and private clouds complement each other as while the latter is difficult to scale, public cloud can be rapidly implemented to grow the IT infrastructure when necessary without upfront costs. At the same time, public cloud capacity can be reduced in the event that the private cloud alone is sufficient.

Hybrid computing also acknowledges the fact that the sole use of public cloud services is not always realistic. While many providers offer firewalls and security measures such as 24/7 support, personal monitoring and security systems, the compliance requirements of certain businesses do not always allow for this approach.

Conclusion
Public cloud is often favoured by small to medium sized businesses (SMEs) due to its flexibility to grow or shrink depending on requirements and the cost savings that can be generated by removing the need to purchase hardware and manage the system in-house. In contrast, private cloud is typically preferred by larger enterprises who have the resource and skills to manage their systems in-house and are more reluctant to move to the public cloud due to the perception that this makes data more difficult to access. The reality is that there are many benefits to using both public and private cloud to run applications and safely store data.

Businesses today require more than just a one size fits all service and it is important to consider the individual needs of each company before selecting whether a private, public or hybrid cloud approach is most appropriate. The one thing that is for certain is that cloud computing, whether this is public or private, will continue to evolve to adapt to the needs of small and large businesses alike.