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Difference between public, private, and hybrid cloud

The three general categories of cloud for organizations are public, private, and hybrid. Learn about the similarities, differences, and when to use which.

Cloud computing is vast. It encompasses a huge variety of computing systems of different types and architectural designs. This complex computing network has transformed how we work and is a crucial part of our daily lives. For organizations, there are many ways to “cloud”, but let’s start with the basics of cloud computing; the internet cloud. This is generally categorized into three types:

  1. Public cloud: Public cloud is a type of computing where resources are offered by a third-party provider via the internet and shared by organizations and individuals who want to use or purchase them.
  2. Private cloud: A private cloud is a cloud computing environment dedicated to a single organization. In a private cloud, all resources are isolated and in the control of one organization.
  3. Hybrid cloud: a combination of the two. This environment uses public and private clouds.

Cloud computing was created because the computing and data storage needs of organizations have become more business-critical and complex over time. Companies were beginning to install more physical storage and computing space, which became increasingly expensive and cumbersome. Cloud storage removes this burden.

Your confidential data is stored in a secure, remote location. It is “the cloud” to us, but it does live in a physical location. All this means is that it is housed by a third party, not on your premises. In most cases, you don’t know where this cloud is located. You can access programs, apps, and data over the internet as easily as if on your own personal computer.

The most common examples of cloud computing service models include Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). In most cases, organizations will leverage a combination of IaaS, PaaS, and SaaS services in their cloud strategy.

Contents

What is a public cloud?

Anything said to live in the cloud refers to documents, apps, data, and anything else that does not reside on a physical appliance, such as your computer, a server, a hard drive, etc. It lives in a huge data warehouse and is accessed only over the Internet. A public cloud does not mean that just anyone can log in, but it is more accessible than other types of clouds, which makes it the most popular.

A common use in business is document collaboration. You can upload and edit your documents, and give your collaborators an access link. Organizations of all sizes like this format because it provides:

  • High scalability and elasticity: You do not need to worry about “running out of space” as you would with on-prem storage solutions
  • Low-cost tier-based pricing: You can pay for only what you use, instead of needing to pre purchase capacity for future use

Public cloud services offered to consumers are often free or offered as a freemium or subscription-based service. Public cloud services offered to businesses usually carry a per-seat licensing cost. Their computing functionality can range from basic services such as email, apps, and storage to enterprise-level OS platforms or infrastructure environments your team can use for software development and testing (DevOps).

What are the benefits of a public cloud?

Public cloud offerings carry many benefits, enabling organizations to make progress on key business initiatives more quickly and efficiently. Benefits of public cloud adoption include:

  • Saves time: When you use a public cloud, you don’t have to worry about managing hosting. Your cloud solution provider is entirely responsible for managing and maintaining the data center. This means there is no lengthy procurement process, and you don’t have to wait for operations to enable your operating system, there is no need to configure or assemble servers, and you never have to worry about establishing connectivity. Additionally, the technology allows developers to employ Agile workflows, significantly reducing lead times when testing, deploying, and releasing new products and updates.
  • Saves you money: The amount of money organizations can save with the public cloud depends on the size of the operation. Large enterprises save millions a year, but with improper management, cost savings may not be realized at all. Take a look at your IT environment to see how the public cloud can save you money.
  • No capital investments exist: You don’t need expensive equipment or extra physical space. Public cloud subscriptions are inexpensive to set up, and you only have to pay for the resources you use. Your infrastructure is transformed capital expenses into more affordable operating expenses.
  • Most public cloud components are maintained and updated by the host. You are not responsible for any additional costs; everything is included in the subscription’s cost.
  • Pay only for what you use: This eliminates paying for unused resources, and you always have the flexibility to scale up or down, giving you just the computing capacity you need.
  • Lower energy costs: Without powering internal servers, you save money on energy costs.
  • Free up IT time: IT talent can concentrate on more revenue-generating activities, instead of spending all of their time managing a data center.

Operating in the cloud is the best step forward for organizations. In addition to the benefits listed above, the cloud provides greater agility, higher efficiency, and more room to grow. When you are ahead of your competition in these areas, you can also be ahead in the market.

A “public” cloud is only accessible to people with your permission. Security is very tight. As recent history has shown, the majority of data leaks actually originate in-house. The public cloud offers:

  • Strong cyber security: Attracting the most talented engineers in the world takes money. Engaging large security teams and the best security tools available is not a viable option for the average company. Cloud computing solves this problem. You benefit from having highly skilled IT professionals solely responsible for the protection of your public cloud infrastructure.
  • Advanced technology creates more security innovations: More modern technology has led to advanced security services. Security innovations in the cloud are designed specifically for cloud-based solutions.
  • Stringent penetration testing: Public clouds undergo stringent penetration tests and are held to stiffer standards than on-premise solutions or private cloud options. Private clouds are regularly slack in penetration testing because in-house breaches are assumed to be unexpected.
  • Controlled access: The majority of data breaches result from human error. Critics claim that keeping data in-house allows better control, but the opposite is true. Data stored in the public cloud has fewer chances of falling into the wrong hands due to an employee’s mistake. As human control of your information decreases, so does your risk.

Public cloud offers unmatched scalability and cost-efficiency, while private cloud ensures enhanced security and control.

It should be noted that cloud security is a shared responsibility. Your cloud service provider is responsible for the security of the cloud, and you are responsible for your security in-house. Customers using cloud services need to understand they play a large role in securing their data and should ensure their IT team is properly trained.

Drawbacks of a public cloud

While public clouds offer numerous benefits, they do come with certain limitations:

  • Security and privacy concerns: All types of clouds can be vulnerable to data breaches and cyber attacks, as data is stored on third-party servers, which might compromise sensitive information.
  • Limited control: Users have limited control over the infrastructure and resources, making it difficult to customize the environment to meet specific requirements.
  • Reliance on internet connectivity: A stable and reliable internet connection is essential to access public cloud services, and any disruption can affect performance and availability. This can be especially important for business operations in remote locations.
  • Service downtime: Public cloud providers may experience service downtime due to hardware failures or maintenance activities, resulting in temporary loss of access to applications and data.
  • Compliance and regulatory issues: Public cloud services may not meet certain compliance or regulatory requirements, which can create legal or contractual issues for businesses.
  • Cost overruns: Billing is typically on a pay-per-use basis, leading to potential cost overruns if usage exceeds anticipated levels, particularly affecting mid-size to large enterprises.

Who are the largest public cloud providers?

The top cloud computing service providers are Amazon and Microsoft, closely followed by Google, Alibaba, and IBM. Let’s take a closer look at each:

  • Amazon Web Services (AWS): AWS is an Amazon company that launched in 2002. It is currently the most popular cloud service provider in the world. It is the most comprehensive and widely adopted cloud platform that offers more than 165 full-featured services stored and provided by data centers worldwide. Millions of customers use this service globally.
  • Microsoft Azure: Microsoft Azure launched many years later than AWS and Google Cloud but quickly rose to the top. It is one of the fastest-growing clouds of all. Azure offers hundreds of services within various categories, including AI and Machine Learning, Compute, Analytics, Databases, DevOps, Internet of Things, and Windows Virtual Desktop.
  • Google Cloud Platform (GCP): Google’s cloud is similar to AWS and Azure. It offers many of the same services in various categories, including AI and Machine Learning, computing, virtualization, storage, security, and Life Sciences. GCP services are available in 20 regions, 61 zones, and over 200 countries.
  • Alibaba Cloud: Alibaba was founded in 2009. It is registered and headquartered in Singapore. The company was originally built to serve Alibaba’s own e-commerce ecosystem but is now available to the public. It is the largest cloud server provider in China and offers various products and services in a wide range of categories. Alibaba is available in 19 regions and 56 zones around the world.
  • IBM Cloud (IBM): IBM was founded in 1911 and is one of the oldest computer companies in the world. Its cloud platform, developed by IBM, is built on a set of cloud computing services designed for businesses. Similar to other cloud service providers, the IBM platform includes PaaS, SaaS, and IaaS as public, private, and hybrid models.

What is a private cloud?

The private cloud is a cloud solution that is dedicated to a single organization. You do not share the computing resources with anyone else. The data center resources can be located on your premises or off-site and controlled by a third-party vendor. The computing resources are isolated and delivered to your organization across a secure private network that is not shared with other customers.

The private cloud is completely customizable to meet the company’s unique business and security needs. Organizations are granted greater visibility and control into the infrastructure, allowing them to operate sensitive IT workloads that meet all regulations without compromising security or performance that could previously only be achieved with dedicated on-site data centers.

Private clouds are best suited for:

  • Highly sensitive data
  • Government agencies and other strictly regulated industries
  • Businesses that need complete control and security over IT workloads and the underlying infrastructure
  • Organizations that can afford to invest in high-performance technologies
  • Large enterprises that need the power of advanced data center technologies to be able to operate efficiently and cost-effectively

What are the benefits of a private cloud?

The most common benefits of a private cloud include:

  • Exclusive, dedicated environments: The underlying physical infrastructure for the private cloud is for your use only. Any other organizations cannot access it.
  • Somewhat scalable: The environment can be scaled as needed without tradeoffs. It is highly efficient and able to meet unpredictable demands without compromising security or performance; however, not as scalable as public cloud.
  • Customizable security: The private cloud complies with stringent regulations, keeping data safe and secure through protocol runs, configurations, and measures based on the company’s unique workload requirements.
  • Highly efficient: The performance of a private cloud is reliable and efficient.
  • Flexible: The private cloud can transform its infrastructure according to the organization’s growing and changing needs, enabled by virtualization

Drawbacks of a private cloud

As effective and efficient as the private cloud may be, some drawbacks exist. These include:

  • Cost: A private cloud solution is quite expensive and has a relatively high total cost of ownership (TCO) compared to public cloud alternatives, especially in the short term. Private cloud infrastructure typically requires large capital expenditures in comparison to public cloud.
  • Not very mobile-friendly: Many private cloud environments are built with strict security compliance requirements in mind, which may require users to initiate VPN connections in order to access the environment.
  • Limited scalability: The infrastructure may not offer enough scalability solutions to meet all demands, especially when the cloud data center is restricted to on-site computing resources.

What is the difference between a public and private cloud?

A public cloud solution delivers IT services directly to the client over the Internet. This cloud-based service is either free, based on premiums, or by subscription according to the volume of computing resources the customer uses.

Public cloud vendors will manage, maintain, and develop the scope of computing resources shared between various customers. One central differentiating aspect of public cloud solutions is their high scalability and elasticity.

They are an affordable option with vast choices based on the organization’s requirements.

In comparison to legacy server technologies, a private cloud focuses on virtualization and thereby separates IT services and resources from the physical device. It is an ideal solution for companies that deal with strict data processing and security requirements. Private cloud environments allow for allocation of resources according to demand, making it a flexible option.

In almost all cases, a firewall is installed to protect the private cloud from any unauthorized access. Only users with security clearance are authorized to access the data on private cloud applications either by use of a secure Virtual Private Network (VPN) or over the client’s intranet, unless specific resources have been made available via the public internet.

What is a hybrid cloud?

A hybrid cloud is a computing environment that combines a physical data center, sometimes referred to as a private cloud, integrated with one or more public cloud environments. This allows the two environments to share access to data and applications as needed.

A hybrid cloud is defined as a mixed computing, storage, and services environment comprising a public cloud solution, private cloud services, and an on-premises infrastructure. This combination gives you great flexibility and control and lets you make the most of your infrastructure dollars.

What are the benefits of a hybrid cloud?

Although cloud services are able to save you a lot of money, their main value is in supporting an ever-changing digital business structure. Every technology management team has to focus on two main agendas: the IT side of the business and the business transformation needs. Typically, IT follows the goal of saving money. Whereas the digital business transformation side focuses on new and innovative ways of increasing revenues.

There are many differences between public, private, and hybrid clouds. The main benefit of a hybrid cloud is its agility. A business might want to combine on-premises resources with private and public clouds to retain the agility needed to stay ahead in today’s world. Having access to both private and public cloud environments means that organizations can run workloads in the environment that is most suitable to satisfy their performance, reliability, or security requirements.

Another strength of hybrid cloud environments is their ability to handle baseline workloads cost-efficiently, while still being able to provide burst capacity for periods of anomalous workload activity. When computing and processing demands increase beyond what an on-premises data center can handle, businesses can tap into the cloud to instantly scale up or down to manage the changing needs. It is also a cost-effective way of getting the resources you need without spending the time or money of purchasing, installing, and maintaining new servers that you may only need occasionally.

Drawbacks of a hybrid cloud

While hybrid cloud platforms offer enhanced security measures compared to on-premises infrastructures, they do come with certain challenges:

  • Complexity: Setting up and managing a hybrid cloud can be complex, requiring integration between different cloud environments. This often demands specialized technical expertise and additional resources.
  • Cost: Implementing and managing a hybrid cloud can be more expensive than using public or private clouds alone due to the need for extra hardware, software, and networking infrastructure. Additionally, organizations maintaining multiple types of cloud environments must also maintain multiple areas of expertise among technical staff, adding to related costs.
  • Security Risks: All types of clouds can be vulnerable to security risks, such as data breaches or cyber-attacks, especially when there is a lack of standardization and consistency between the different cloud environments.
  • Data Governance: Ensuring compliance with regulations such as GDPR or HIPAA can be challenging when managing data across multiple cloud environments.
  • Network Performance: The reliance on communication between different cloud environments can lead to network latency and performance issues.
  • Integration Challenges: Ensuring compatibility between applications and services across various cloud environments can be difficult.

Security concerns of a hybrid solution

Hybrid cloud platforms use many of the same security measures as on-premises infrastructures, including security information and event management (SIEM). In fact, organizations that use hybrid systems find that the scalability, redundancy, and agility provided by hybrid cloud environments lends to improved cybersecurity operations.

What is multi-cloud?

Having multiple vendors is a common practice these days. A multi-cloud architecture uses two or more cloud service providers. A multi-cloud environment can be several private clouds, several public clouds, or a combination of both.

The main purpose of a multi-cloud environment is to reduce the risks associated with relying on a single provider, and to capitalize on the strengths of different providers. With resources being distributed to different vendors, minimizing the chance of downtime, data loss, and service disruptions is possible. This redundancy ensures that the other services can still operate if one provider experiences an outage. Furthermore, different cloud service providers have different strengths, and having a multi-vendor cloud strategy allows organizations to use different vendors for different use-cases, as aligned with their strengths. Multi-clouds also increase available storage and computing power.

Benefits of multi-cloud environments

Adopting a multi-cloud strategy offers numerous benefits:

  • Increased availability and resilience: If one provider’s services experience downtime, the workload can be shifted to another, minimizing the risk of complete downtime.
  • Optimized performance: Cloud providers excel in their own areas. A multi-cloud approach allows you to optimize its performance by using the best service from each provider.
  • Avoid vendor lock-in: By not being tied to a single provider, you can avoid lock-in and gain competitive pricing benefits. Cheaper services can be used for the less important tasks.
  • Advanced regulatory compliance: A multi-cloud strategy allows you to scale workloads while allowing you to run workloads in the environment that best suits you from the perspective of regulatory compliance.
  • Innovative capabilities: Different cloud providers will invest in different innovative products. A multi-cloud strategy allows you to leverage these innovations from each provider.

Challenges of multi-cloud environments

While multi-cloud environments provide significant advantages, they also present challenges such as:

  • Complexity in management: It can be difficult to manage multiple cloud environments. You need expertise in handling integrations and monitoring.
  • Interoperability issues: You must be able to achieve seamless interoperability. Applications and data need to move freely between cloud environments without facing compatibility issues.
  • Cost management: Tracking and managing your costs across multiple cloud providers can be challenging. You need an effective strategy in place to avoid unexpected expenses. 

Making the right cloud choice

Understanding the differences between public, private, hybrid, and multi-cloud is crucial for selecting the best cloud strategy for your organization. Each strategy offers distinct advantages and challenges, from the scalability and cost-efficiency of public clouds to the security and customization of private clouds and the flexibility and control of hybrid clouds. By carefully evaluating your unique needs and objectives, you can make informed decisions that enhance your operations, bolster security, and drive innovation. As cloud technology advances, staying informed and adaptable will keep your organization competitive and efficient.

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Author
By Nicholas Doane
Sr. Sales Engineer, LogicMonitor

Subject matter expert in AWS, hybrid cloud architectures, and hybrid cloud observability with 20+ years of experience in IT Operations and Solution Engineering.

Disclaimer: The views expressed on this blog are those of the author and do not necessarily reflect the views of LogicMonitor or its affiliates.

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