Private vs. Public Cloud Security

FactSet
FactSet
Published in
7 min readOct 26, 2023

What is Cloud Computing?

Have you ever created your own server, database, or network with few clicks on a browser window? Did it give you the feel of an IT infrastructure wizard? Then you know what I mean. This magic is called — cloud computing.

Cloud computing transformed the way enterprises operate. Here is why:

  • On-demand availability of computing resources like data storage, processing power, and software applications, via the internet
  • Pay for what you use, not a flat fee
  • Access to a broad range of technologies enables you to innovate faster
  • Cloud providers take over the hard stuff like data centers management and security, reliability, maintenance and updates
  • In the Cloud you can expand to new geographic regions and deploy globally in minutes

Sounds awesome, right? Not so fast.

While opportunities abound with cloud resources, there are challenges and pitfalls, as well as different methods to achieve your desired results. Security is one of the top questions organizations must answer when moving into the Cloud. Things like Data Privacy, Data Security, High Availability, Regulatory Compliance, DDoS Protection all must be considered and balanced.

Cloud security is a set of control-based safeguards, policies, and tools designed to protect resources stored online from leakage, theft, or cloud data loss. Finding a perfect balance between Cloud Security and advantages of the Cloud is what enterprises are challenged with today.

To meet rapidly changing technology needs and security challenges, organizations can choose from several different cloud computing models, types, and services like public cloud, private cloud, hybrid cloud, virtual cloud, and multi-cloud. But the two main concepts are private and public cloud types. Here is a brief overview of these two major types.

Public Cloud

Cloud providers deliver resources as a fully managed service. There is no setup involved as the provider takes care of all of this, and client access is usually accessed via a web browser. You use public cloud for its on-demand computing and self-service provisioning. Public cloud offers a range of infrastructure options at scale, around the globe. You can access customized resources for specific geographies and computing needs. There are no upfront costs or lock-in contracts. You often get to try the services for free before committing to scale.

In a public cloud environment, users must rely on cloud providers to implement security measures to ensure the protection of their data. Public cloud models are vulnerable to certain threats, such as cyber-attacks or data breaches due to the multi-tenant nature of the environment. Security is a shared responsibility between the cloud provider and the public cloud users. The public cloud provider is responsible for securing all hardware and software infrastructure they provide. You’re responsible for the security of your data and applications in the cloud.

Public cloud is multi-tenant, meaning other companies’ data may be stored on the same server as your company’s data. Data in the public cloud may also be stored in multiple locations by the service provider, potentially creating jurisdictional and compliance issues.

Depending on the industry and type of information stored in a public cloud, there may not be enough privacy and security policies in place. These shortfalls contribute to public cloud environments increasing the attack surface for potential hackers, particularly with the use of sophisticated malware. Data loss is a huge concern here.

While firewalls and other cybersecurity measures on a lower level managed by the cloud service provider it also leaves the company’s data at risk of a data breach if there’s a lapse in security procedures on the public cloud providers end or unidentified misconfigurations.

A classic example of this potential issue is the 2019 Capital One data breach (1), involving an attacker accessing sensitive information due to a misconfigured public cloud firewall.

Public cloud computing services are ideal for virtually any application. They handle the heavy lifting of software and hardware infrastructure, allowing you to focus entirely on developing your application.

The major benefit is the availability of serverless computing. What this means is you can create applications without needing to manage IT infrastructure. Even though your applications still run on servers, the third-party provider takes care of all the server management tasks, saving you time and resources.

Another significant advantage is the cost-effectiveness of public cloud resources. They offer the dual benefit of having no maintenance costs and only having to pay for what you use. This makes public cloud computing notably more affordable.

Lastly, expenses are relatively lower and more predictable as a result of the large-scale economies of public cloud computing services.

In summary, public cloud computing services offer various benefits making them highly preferable. They streamline the application development process, provide server management, and offer cost-effective solutions, ultimately making your job easier and more focused.

major providers: Amazon Web Services, Google Cloud, and Microsoft Azure

Private Cloud

Private cloud services are usually more secure than public clouds, data and applications that are stored in a dedicated cloud environment that is isolated from other organizations. A single organization controls and maintains the underlying infrastructure to deliver the IT resources. Such solution provides a higher level of security as compared to a public cloud environment.

A private cloud environment gives better control and visibility over organization’s data. This offers a robust level of control and customization, allowing administrators to tailor a specific security policy for their needs because all security efforts are done in-house. Security tools available with a private cloud include greater levels of authentication, API-enabled protection , additional layers of automation, and the potential for scalability. All the above contributes to a greater level of data protection.

However, private clouds may lack the high-end security features and constant security innovations provided by public cloud vendors.

Private cloud deployment is complex and time-consuming. It requires a significant upfront investment in infrastructure and human resources. You must source teams with advanced coding and engineering expertise.

Security of the physical infrastructure is the organization’s responsibility. Private clouds users can spread the workload over multiple servers but are limited by the amount of server space a company owns or operates. Depending on the configuration and available space on private clouds, a disaster could put key business solutions and security services offline.

While private clouds are great for use in-house, where shared workloads are typical, if the company’s needs expand, they can be challenging to manage in terms of scalability. In strictly regulated industries, such as finance and healthcare, a private cloud is a regulatory requirement. Due to private organization different priorities and budget the private data center infrastructure can get outdated over time.

A hybrid cloud solution — one that involves public and private clouds — could help diversify data storage, protecting assets in the event of a disaster or attack.

The private cloud model proves to be expensive over time. You have to maintain and manage your private infrastructure. IT hardware like servers and disk storage require cooling, electricity, and ongoing physical security. You must also upgrade the system software, and you need IT professionals to do so. You may even have to purchase new hardware regularly.

A private cloud deployment model is only suitable for very large organizations that already have multiple data centers and existing infrastructure management systems in place. They use private clouds to improve existing resource utilization. Even such organizations prefer a multi-cloud approach. They use specialized software to seamlessly move workloads between private and public cloud computing resources as needed.

Hybrid Cloud

A hybrid cloud combines some of the best features of public and private cloud environments, offering higher scalability than can be achieved in a private cloud environment but with greater control than that of a public cloud. In a hybrid cloud environment, organizations have the option to run and scale workloads in the optimal setting, as well as the flexibility to move workloads between different environments quickly and easily.

Virtual Private Cloud

A virtual private cloud is a private cloud that can be deployed within a public cloud infrastructure. It’s a secure, isolated environment where private cloud users run code, host websites, store data, and perform other tasks that require a traditional data center. Virtual private clouds provides the convenience and scalability of public cloud computing resources alongside additional control and security.

Conclusion

The cloud — public, private, or hybrid — is here to stay. Neither public nor private clouds provide superior regarding security. Itt depends heavily upon individual use case scenarios. The choice between the two should align with the organization’s unique requirements, taking into account the nature of data, the need for agility, budget constraints, and available expertise. The solution may lie in hybrid clouds, which incorporate both public and private clouds, offering the security advantages of a private cloud with the scalability and flexibility of a public cloud. As the cloud-service landscape continues to evolve, refining the balance between security and service flexibility will remain an ongoing challenge for businesses.

Choose your cloud business partners with care; your business will depend on the availability of your cloud, whether it’s key data or an application. The right solution for your business may not come from a single cloud provider and it will likely involve a network of partners across multi-cloud environments.

Reference:

https://www.capitalone.com/digital/facts2019/

Author: FactSet Cybersecurity

Editors: Gregory Levinsky (Marketing Content Specialist) & Josh Gaddy (VP, Director, Developer Advocacy)

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FactSet
FactSet

FactSet delivers data, analytics, and open technology in a digital platform to help the financial community see more, think bigger, and do their best work.