Is A Private Cloud Really A Cloud?

Is a Private Cloud Really a Cloud?

We essentially have two implementation models for cloud computing: the Public cloud, what people call the real cloud, and the Private cloud, which is an implementation of the same elements and infrastructure of a Public cloud on a private level. There are a lot of arguments to be made here but let’s take things at face value. The words private and public are already biased, and private clouds were actually made because people wanted to be more secure with their data.

If you think that it will take more time and effort for the Public Cloud market to mature, meaning that Private Clouds are a better option for large companies. You are dead wrong. If you focus on the business benefits that the Cloud offers, you would certainly believe that Public Clouds are better for business and that there is little to absolutely no solid business reason to even consider a Private Cloud, much less build one.

To truly understand the limitations of the Private Cloud model, we must take the business perspective. What are the business benefits of migrating to the Cloud?

  • Cloud lowers expenses. The cloud will shift this particular IT expense from capital to operational expense. This means that instead of investing in hardware, software, installation and personnel, you can pay as you go for what you need and use as an operational expense. This is not the case for Private Clouds where you need to invest on the infrastructure which might increase capital expenditure altogether.
  • Cloud increases utilization while dealing with usage spikes, giving the illusion of infinite resources. The Cloud is designed to distribute resources across many users, so unless you want to setup a data center that will only be fully utilized once a month or every time an indecent picture of a celebrity is leaked, then a Private Cloud is not for you. Private Clouds are rarely fully utilized unless the company is particularly large and most or all of its divisions use this Cloud thoroughly. You might end up using only $10,000 worth of service per month from your $1 million data center, a huge waste of resources. With a Public Cloud, you can set the service to automatically scale depending on usage, so if it spikes, resources are allocated in an instant to cope with it. It’s elastic, limitless. But compare that to Private Clouds where you have an exact limit, now what happens when all of a sudden, every single computer and mobile device starts accessing the Private Cloud and it might not be able to cope because it has no links to other clouds where it may borrow resources.
  • The Cloud deals in economies of scale. Large Cloud Computing providers are able to sell their services inexpensively because they are serving so many clients that the user-base actually already pays for everything, and so they can operate at razor-thin margins. But your Private Cloud does not have that luxury; you are paying for everything, even the resources that go unused.

Some of us have another term for the Private Cloud: traditional data center. We are not in the data center business, so there is no reason for us to build one, not in terms of economy, not in terms of technical, and certainly not in terms of security.

By Abdul Salam

About Abdul

Abdul is a senior consultant with Energy Services, and author of numerous blogs, books, white papers, and tutorials on cloud computing and accomplished technical writer with CloudTweaks. He earned his bachelor’s degree in Information Technology, followed by an MBA-IT degree and certifications by Cisco and Juniper Networks.

He has recently co-authored: Deploying and Managing a Cloud Infrastructure: Real-World Skills for the CompTIA Cloud+ Certification (Wiley).

View All Articles

One Response to Is A Private Cloud Really A Cloud?

  1. The private cloud is definitely more costly and requires more resources.  The reason that organizations choose the private cloud is mostly due to security concerns.  As the public cloud continues to advance and becomes more secure, it will become less of an issue.

Consequences Of Combining Off Premise Cloud Storage and Corporate Data

Consequences Of Combining Off Premise Cloud Storage and Corporate Data

Off Premise Corporate Data Storage Cloud storage is a broad term. It can encompass anything from on premise solutions, to file storage, disaster recovery and off premise options. To narrow the scope, I’ve dedicated the focus of today’s discussion to the more popular cloud storage services—such as Dropbox, Box, OneDrive—which are also known as hosted,…

Using Big Data To Analyze Venture Capitalists’ Ability To Recognize Potential

Using Big Data To Analyze Venture Capitalists’ Ability To Recognize Potential

Big Data To Analyze Using Big Data to Analyze Venture Capitalists’ Ability To Recognize Potential For those who are regularly involved with SMEs, venture capital, and company valuations, it is common knowledge that start-ups that exit for more than $1 billion dollars are extremely rare – often termed ‘unicorn’ companies. Despite their rarity, it should…

Cloud Infographic – Big Data Analytics Trends

Cloud Infographic – Big Data Analytics Trends

Big Data Analytics Trends As data information and cloud computing continues to work together, the need for data analytics continues to grow. Many tech firms predict that big data volume will grow steadily 40% per year and in 2020, will grow up to 50 times that. This growth will also bring a number of cost…

5 Reasons Why Your Startup Will Grow Faster In The Cloud

5 Reasons Why Your Startup Will Grow Faster In The Cloud

Cloud Startup Fast-tracking Start-ups face many challenges, the biggest of which is usually managing growth. A start-up that does not grow is at constant risk of failure, whereas a new business that grows faster than expected may be hindered by operational constraints, such as a lack of staff, workspace and networks. It is an unfortunate…

Explosive Growth Of Data-Driven Marketing

Explosive Growth Of Data-Driven Marketing

Data-Driven Marketing There is an absolute endless amount of data that is being accumulated, dissected, analyzed with the important bits extracted and used for a number of purposes. With the amount of data in the world has already reached into multiple zettabytes annually. A Zettabyte is one million petabytes or one thousand exabytes. With data…

Do Small Businesses Need Cloud Storage Service?

Do Small Businesses Need Cloud Storage Service?

Cloud Storage Services Not using cloud storage for your business yet? Cloud storage provides small businesses like yours with several advantages. Start using one now and look forward to the following benefits: Easy back-up of files According to Practicalecommerce, it provides small businesses with a way to back up their documents and files. No need…

Disaster Recovery And The Cloud

Disaster Recovery And The Cloud

Disaster Recovery And The Cloud One of the least considered benefits of cloud computing in the average small or mid-sized business manager’s mind is the aspect of disaster recovery. Part of the reason for this is that so few small and mid-size businesses have ever contemplated the impact of a major disaster on their IT…

Cloud Computing Then & Now

Cloud Computing Then & Now

The Evolving Cloud  From as early as the onset of modern computing, the possibility of resource distribution has been explored. Today’s cloud computing environment goes well beyond what most could even have imagined at the birth of modern computing and innovation in the field isn’t slowing. A Brief History Matillion’s interactive timeline of cloud begins…

Cloud Computing Price War Rages On

Cloud Computing Price War Rages On

Cloud Computing Price War There’s little question that the business world is a competitive place, but probably no area in business truly defines cutthroat quite like cloud computing. At the moment, we are witnessing a heated price war pitting some of the top cloud providers against each other, all in a big way to attract…

Containerization: The Bold Face Of The Cloud In 2016

Containerization: The Bold Face Of The Cloud In 2016

Containerization And The Cloud “Right now, the biggest technology shift in the cloud is a rapid evolution from simple virtual machine (VM) hosting toward containerization’’ says the CTO of Microsoft Azure, Mark Russinovitch, a man who deals with the evolving cloud infrastructure every day. In his words, containerization is “an incredibly efficient, portable, and lightweight…