What to Know When Deciding Between Public and Private Cloud


The cloud market is booming, with revenue for public services estimated to reach $100 billion by 2016, according to a study by IDC. And that total does not take into account the private cloud market, which is expected to achieve a compound annual growth rate of 21.5 percent by 2015.

“By the end of the decade, IDC expects at least 80 percent of the industry’s growth, and enterprises’ highest-value leverage of IT, will be driven by cloud services and the other third-platform technologies,” said Frank Gens, senior vice president and chief analyst at IDC.

Public and private cloud providers differ in their availability to users. Public services are open to everyone, almost without restriction, whereas private clouds are customized for a specific person or organization.

While both have been proven helpful to businesses, they offer very different advantages. Here is a list of three of the biggest benefits of public and private clouds.

Public clouds:

1. Public cloud services are typically more cost-efficient, since the database software is universal and the need for staffing is low.

2. Speed, both in terms of finding a provider and integrating a company’s databases to the cloud, is another advantage.

3. The systems also provide scalability and flexibility, particularly in handling increasing amounts of data.

Private clouds:

1. Security is arguably the top reason to invest in private cloud services. Public cloud providers are more vulnerable to security breaches – such as when Amazon Web Services experienced a major power outage – and are likely slower to respond.

2. The ability to virtualize software is not offered by public cloud services. Custom application tools make up about 37 percent of the private cloud market.

3. Organizations that employ private cloud services have shown a greater ability to generate revenue, as noted in a blog post for Datamation.