Wednesday 21 June 2017

Private Cloud – Is It Still Worth It Even If Public Cloud is Cheaper?

There’s a lot of discussion in big companies about the advantages of making their private cloud with the use of their own server farms, regardless if it’s worthwhile versus the complete move to use the external shared public cloud environment. Of course, the SMEs do not have this dilemma because they do not have much hardware, generally don’t have internal expertise to consider a private version, and so just utilize externally available solutions with no option. More efficient, cheaper, and scalable, many big companies leverage the technology to jump ahead of their less nimble, bigger peers.
So, what are the reasons why you should take for consideration a private cloud? Well, as mentioned in some blogs, it’s the same company faced business decision to consider off-shoring with respect to captive some offshore solutions versus the outsourced offshore solutions. It’s also like the decision companies that make on whether to keep the services in house, ring fence or buy them in a free market. All of such dilemmas come with boring yet important weighing of the pros, disadvantages, benefits, and costs.

Ultimately, it’s the fear to lose data security and control that’s pushing the private cloud concepts combined with particular amount of job protection in the IT teams. As results, it isn’t surprising that the concepts of the private clouds emerge, primarily in highly regulated parts of financial sector, but there are also similar debates in retail data emerging from the store cards and some sectors. In such companies, there’s a big fear of putting the data out to the providers even with the security safeguards as well as data compliance controls. Naturally, the companies don’t want regulatory or reputation risk of several kind of client data exposure. Therefore, the idea of using internal hardware farms that might be substantial to reap several benefits of technology advances without the risk of allowing data outside the corporate networks.

Private cloud offers companies comfort on data security, yet what is lost? Correctly built, their systems may scavenge CPU power that’s unused nowadays within their server environments in maximizing the use of internal capacity, which is an obvious benefit. Nevertheless, the costs to downsize or upsize after that aren’t feasible without huge investment. With the use of public cloud, you will get what you want on demand. You don’t have to pay more. You don’t even need to pay less because it’s there instantly.

Unit cost is actually the second issue. Again, there could be a one-off advantage from enhanced efficient usage of the current environments, yet without the scale of the economies of massive environments in public domain internal unit costs that are guaranteed to exceed external unit prices.
There are other reasons why private cloud is a good investment. If you want your company to be more productive and efficient, it’s something that you should take for consideration. Just make sure that you choose the right provider for your private cloud services.


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