Difference Between Private and Public Cloud

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Private Cloud versus Public Cloud

Public clouds enable virtual machines, apps, and storage to be run on shared physical servers. Google, AWS, and Azure are examples of public clouds. Many public clouds offer pay-as-you-go pricing. As a result, you will be charged per use. A payment model like this is a good choice for businesses, especially if you don’t want to waste resources.

Multi-tenant public clouds let hundreds of users share the same servers, power, cooling, and other resources. Public clouds can scale immediately to handle an increase in traffic, but you will still be charged the same price if you fail to scale down your resources. Provisioning is unlimited, regardless of whether it has been used. In the event of a large data spike, you would have to pay for input-output, data input, data output, and power.

Private cloud computing is a form of cloud computing that serves only the needs of a particular business or client. The public cloud has similar benefits such as scalability, but the private cloud offers greater security and control via a single architecture. Private clouds are often used by businesses seeking greater security.

A private cloud, for example, would suit industries like finance and government that have complex computing requirements. It is used to manage environments and comply with regulatory and security requirements.

Cloud Computing

Cloud computing lets you access and store apps, programs, and data via the Internet rather than on your hard disk. Cloud computing allows you to only pay for the services you use. And this helps lower operating costs, scale your business more efficiently, and reduce your overhead. No cloud computing service is the same. In order to find the right solution for you, you have a variety of options and types of services to choose from.

It is important to first decide what type of cloud deployment or architecture you want to use. There are three ways to deploy cloud services: public cloud, private cloud, and hybrid cloud. Each of these deployments has distinctive advantages.

What is a Public Cloud?

A public cloud is an IT model that allows on-demand computing services managed by third-party providers and shared with other organizations via the public Internet. Public cloud service providers may offer cloud-based services such as platform as a service (IaaS), SaaS, and platform as a service (PaaS). You can pay either a monthly or peruse fee. And this eliminates the need to host these services in their data centers.

Cloud providers use data centers divided into virtual machines that tenants can share. In addition to software development tools and storage, virtual machines can be rented or paid for as an additional cloud-based service. Public cloud services are used by many companies to store data that isn’t frequently accessed or for less-sensitive applications that are subject to unpredictable spikes in usage.

The Pros and Cons of Public Cloud


  • Cost savings: Companies can reduce their IT operations costs by moving to a public cloud. These costs are being outsourced to third-party vendors who can better manage them. Public clouds are typically less expensive than private ones, as the cloud provider can maximize their hardware usage and make more money by selling their services to multiple clients at once.
  • There is less server management: An organization that uses a public cloud doesn’t need to manage servers as much as legacy data centers on-premises or internal private clouds.
  • Security: Small and medium-sized businesses might not have the funds to implement robust security measures. They can use a public cloud service to outsource certain aspects of cyber security to a more extensive provider with more resources.


  • Multi-Tenancy can pose security and compliance issues for businesses that must adhere to strict regulatory compliance standards. Multi-Tenant cloud service has a slight risk of data leakage. Which may not be something that companies in highly specialized areas can afford to risk. The risk of data leakage is shallow as most cloud providers adhere to rigorous security standards. It can be challenging to apply the same security policies for internal resources as public clouds, mainly when a cloud migration occurs.
  • Vendor lock-in: This is a problem with cloud technology. While the cloud can help organizations save money and make their operations more flexible, they may also become dependent on the services of cloud vendors – virtual machines, storage, apps, and other technologies they offer – to keep their business running.

What is a Private Cloud?

Private cloud computing provides unique benefits to one business entity. Private clouds are similar to other cloud computing environments. It provides virtualized computing resources as well as physical components stored on-premises or in the vendor’s data center.

Private cloud deployment offers several advantages. One is the increased control that the company has over the environment. A single company can only access the private cloud to customize the background and manage it according to its specific computing requirements.

Private cloud strategies may include hosting hardware locally at a company’s facility or hosting a cloud service provider. In spite of the fact that virtual private clouds are usually paid for on an ongoing basis, one can still use provisioned storage configurations and hardware to ensure the security of a private network.

Private Cloud – The Pros & Cons

Private cloud solutions can add value to your enterprise by abstracting computing processes more efficiently than traditional virtualization. Some of the main benefits include:


  • Compliance and Security: Compliance is essential for businesses that operate in highly regulated industries. Because sensitive data is stored on hardware inaccessible to others, private cloud infrastructure allows organizations to adhere to stringent regulations. One can achieve this advantage through both hosted services and on-site hardware installations.
  • Organizations can customize the solution. A cloud architect creates a fully private cloud, so stakeholders can choose the environment best suited to their applications. Hosted private clouds offer the same benefits without requiring any on-site setup. Cloud services are set up and managed by vendors for exclusive use by companies.
  • Hybrid Integration: If an application requires additional computing resources, hybridization expands the resources of a private cloud into a publicly accessible cloud. This allows for uptime and eliminates the need to purchase different servers. Integrating private and public clouds in a hybrid manner can be a cost-effective solution for companies that need the security of a private cloud, but want the same functionalities of a public cloud.


If an organization doesn’t have consistent computing requirements, a private cloud could pose problems. The inability of private clouds to scale efficiently when resource demand changes can cause problems for organizations and raise costs over time. IT stakeholders should consider these key points:

  • Costs upfront: Private clouds hosted on-site will require significant capital investment before they can be of any value to an organization. Investing in private clouds can be quite expensive. To reduce these costs significantly, cloud architects will need to create, manage, and maintain private clouds.
  • Capacity utilization: The private cloud computing model places the responsibility on the organization to maximize capacity utilization. A cloud deployment that is not used to its full potential can lead to significant business losses.
  • Scalability: It may be more expensive and time-consuming to scale up private cloud resources if the business requires additional computing power. This process is typically slower than scaling a virtual computer or asking for other resources from a private cloud provider.

The Differences at a Glance

Private Cloud Public Cloud
The Private Cloud is a cloud-based service hosted on private servers within an organization. A public cloud allows anyone to purchase computing resources. Multiple users usually share a public cloud.
Protect your most sensitive data. Application testing and disaster recovery for public-facing companies.
You can manage it at home. Extreme performance – Fine-grained control of both storage and compute. It all depends on the Service Level Agreement, but it is usually simple via self-managed software that the customer will use.
High performance, security, customization, and control options. Solutions are affordable and allow for growth
Single Tenant: Your business’s dedicated network and hardware, managed by technical staff. Multi-Tenant: A shared network that is hosted offsite and managed by your service provider.
Your technical managers. The technical team at Cloud Service Provider.
Implementing hardware, software, or staff resources can be costly upfront. It must include maintaining and growing ongoing expenses. An affordable option that charges a monthly fee. Pay as you go, scale up or down according to your needs, and charge per minute.
Isolated Network environment. Increased security to comply with data protection legislation. Basic security compliance. Some might offer bolt-on security options.
A dedicated server provides high performance. Performance levels can be reduced by competing users.

Let’s conclude

It doesn’t matter which cloud solution you choose. You need to thoroughly research all options and make sure you select the right cloud solution for your workload. Many factors influence the choice between private and public cloud solutions. The reality is that there is no either-or solution. Cloud solutions offer distinct value propositions, which explains why organizations tend to utilize all three types.

It is good to be familiar with the differences, and keep in mind that a hybrid solution may offer advantages of both.

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