Public vs. Private Cloud, Which Is Better for Your Business

Cloud computing has revolutionized the way businesses manage their IT infrastructure. Global cloud spending is expected to reach $118 billion by 2025. From traditional small businesses to big enterprises, the cloud is everywhere. However, despite its overwhelming presence, the understanding of cloud technology is still somewhat limited. Discussions on data centers and cloud computing are often shrouded with obscure jargon, which makes it incredibly challenging for a layperson to understand the fundamentals. But, as a business owner, one must get the hang of it to make an informed decision that works best for their business. 
Let’s look at Public vs. Private cloud.

While planning the cloud strategy for your business, the first thing you need to decide whether to opt for a public cloud service or set up a private cloud infrastructure. In this blog, we will demystify the concept of public cloud vs. private cloud for you so that it becomes easier to choose the right option. 

What Is the Difference Between Public Cloud and Private Cloud?

The prime difference between public and private cloud is for the former, the computing resources are shared among multiple users while, for the latter, dedicated cloud infrastructure is reserved for a single organization. 

In the public cloud model, a third-party service provider offers cloud computing infrastructure delivered over the internet. Typically, pre-configured and pre-published infrastructure is offered to multiple tenants based on the pay-as-you-go subscription model.

Here, the service-providing company owns all the resources, including the hardware, software, and other supporting infrastructure for the data hosting services. Your data and apps are stored off-site on a server shared by multiple tenants.

On the other hand, in a private cloud deployment model, your data and applications reside on your own exclusive infrastructure. The resources are not shared, and the service is distributed via a secure private network.

The resources can be hosted on your own data center dedicated server, at a colocation data center, or via a private cloud provider. You have complete control over the cloud environment and can customize the network to suit your business need.

Public Cloud vs. Private Cloud: How Do They Compare?

Now, as we have discussed the basic infrastructural differences between public and private clouds, let us go deeper and analyze how these two models compare based on cost, performance, scalability, security, and other critical aspects. 

Cost Difference between Public and Private Cloud

There is a general notion that the public cloud is way more affordable than the private cloud. The public cloud enables you to take all the advantages of the cloud without having to deploy your own expensive infrastructure. It is often considered a more budget-friendly option, where the resources are shared, and you pay only for what you use. When this is generally true for a start-up or a business with limited traffic and simple applications; things can get complicated as the business grow. 

Hosting the data on the public cloud is not expensive. However, the bill you receive from your public cloud service provider involves several other charges, including data transfer costs. Thus, the invoice is always changing, and it is extremely difficult to track the expenses. 

In the private cloud model, the initial cost is comparatively much higher than in the public cloud model. You have to purchase or rent the server and other equipment to host the infrastructure. If you plan to host it on-site, you must invest a lump sum to build the on premise data center. However, you can reduce this cost by hosting your private cloud infrastructure in a colo data center. In fact, Colocation costs are often much lower than what you pay for a public cloud service.    

Performance and Scalability

While adopting a cloud-first strategy for your business, two critical things to consider are the performance and scalability of the cloud infrastructure. A private cloud system is typically high-performing due to its exclusivity. Here, as you are not sharing the server with any other user, the performance level of your cloud infrastructure remains consistent. With the public cloud, the performance can fluctuate due to the presence of competing users.

However, when it comes to scalability, public cloud infrastructure is preferred over private cloud. It’s true that the private cloud can be more easily scaled up as compared to traditional on premise infrastructure, but it doesn’t let you shift workloads as easily as the public cloud does. So, if you experience sudden and rapid growth, it might be difficult for you to enhance the infrastructure immediately. 

Management and Maintenance

Public cloud providers are responsible for managing the cloud infrastructure. The management and maintenance costs are included in your monthly bill. Thus, you can run your cloud infrastructure smoothly without a team of IT experts. 

However, if you decide to host your data on a private cloud, you and your team have to take the entire responsibility of management and maintenance unless you go for a private cloud service offered by a third-party vendor. You can also consider getting managed colocation services to reduce your team’s workload.  


In this age of growing threats of cyber-attacks, it is critical to keep your cloud infrastructure secure. A small lapse in security measures can cause irreparable damage to your business and reputation. 

The public cloud’s security depends on the service provider. Well-reputed public cloud providers usually deploy robust security measures to protect your data. However, that may not be sufficient for you, especially if you deal with sensitive financial data or medical information. The private cloud offers more security in this regard. As you are not sharing the resources with other users, security concerns are less. Besides, depending on the nature of your business, you may have to host a part of the infrastructure on a private cloud to ensure compliance with regulatory demands. 

At a Glance

Public CloudPrivate Cloud
 Infrastructure is shared between multiple tenantsInfrastructure is exclusively used by a single entity
 The initial deployment cost is low, and the recurring cost depends on the size of your businessThe initial cost is higher, but can be proved to be more cost-effective in the long run
Performance is low to medium; performance can be affected by competing usersPerformance is high and consistent
Easily scalableScalability is limited and requires more investment
Maintenance and management are taken care of by the providerDepending on the type of service you choose, you may have to take the responsibility
Moderate security and compliance can be an issueHighly secured, help you meet compliance requirements

Take Away

Both public and private clouds have certain advantages and downsides. Which model will suit you best depends on the size and nature of your business. You may also consider incorporating colo services in your cloud adoption plan for infrastructure reliability, cost-effectiveness, and enhanced security. 

Coloco offers affordable colocation services that perfectly complement your cloud adoption strategy. You will get to exploit the advantages of a private cloud at a much lower cost when you choose colocation for your cloud infrastructure. Coloco services also help you scale up your IT infrastructure at a minimal cost. Here, you only have to pay for the equipment, space, and extra bandwidth you use. Coloco also offers managed colocation, which helps you bring down your management and maintenance costs. Besides, its 24/7 human monitoring service ensures the highest performance and improved security for your private cloud servers. 

You may also like