Public vs. Private Cloud — The Pricing Question

Finance and accounting have a significant role to play in every business decision for companies. Hence, it’s no surprise that during cloud adoption, enterprises want not only the best fit but also the most cost-effective solution. The pricing debate of whether public cloud or private cloud is best for business starts here. In this post, we analyze how pricing works in both cloud models and how to make the right decision.

Basics of Public and Private Cloud

With a public cloud, companies can access a seemingly limitless amount of infrastructure resources, along with the best in technology that governs the industry. There are no upfront investments or set-up costs as well. Companies believe that there is a tradeoff when it comes to the level of customization and security.

A private cloud can provide companies with more control over the infrastructure. This control means that there is more flexibility in terms of customization and additional security protocols. Private clouds can also help enterprises deal with regulations on data storage and processing. A possible drawback is that companies will still have to be involved in certain aspects of the infrastructure management if they choose to customize beyond what the cloud provider sets up.

Pricing in Public Cloud

Public clouds are often viewed as a great model for the cost-efficiency benefits they give. The on-demand resource positioning of public clouds makes it the least wasteful in terms of resources. This factor is a major plus for many companies as they can avoid investments or capacity planning exercises. Enterprises also save money with public clouds by avoiding management and support-related expenses. Cloud providers might also offer discounts for long-term public cloud contracts.

Pricing in Private Cloud

For private clouds, a key consideration in cost-efficiency lies in the management and use of resources. If the enterprise has continuous, large workloads and strict security requirements, private clouds are the ideal solution. It also makes sense in terms of long-term spending and provisioning of resources, considering the nature of this almost-steady-but-high workload. Fully managed private clouds can also help reduce the spending on IT infrastructure and specialized teams.

In Conclusion

Overall, cloud architectures vary from company to company, and they should have long-term goals in mind during cloud adoption. The choice between public and private cloud should ideally come from their desired business outcomes. Pricing will start making sense regardless of the cloud model if the business goals and objectives are met. An experienced cloud provider can point companies in the right direction and give the proper pricing for their choice.

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VEXXHOST is a Canadian cloud computing provider offering cloud services and solutions to a vast array of clients globally. We are committed to the growth of technology, including AI, and always support projects that foster humanity’s advance. Reach out to our expert team if you would like to check out our cloud offerings, including private clouds.