Private vs. Public Cloud: Which one is right for your business?

As more and more companies migrate their data and operations to a cloud-based infrastructure, experts predict that widespread adoption is just on the horizon. In Southeast Asia alone, the International Data Corporation (IDC) forecasted that 70% of enterprises in the region will be moving towards a hybrid cloud strategy¹ . Such an approach addresses the limitations of using solely a private cloud or public cloud structure, and combines the best of both worlds. (See "The growing significance of the Hybrid Cloud" for more about its advantages.)

That said, this doesn't imply that a purely public or private cloud solution should be disregarded. If you're on the fence as to whether or not a purely public or private cloud solution is better-suited to your business, here are a few points to consider:

Go for private cloud when…

● Your type of business requires a high and stable performance, allowing low latency and speedy access to its database.
● Security is a top concern for your business, in which large amounts of sensitive information may be possessed, stored or transferred. There could also be regulation standards required to comply.
● The cloud infrastructure and system need to be customized for a unique internal structure and needs, especially if the applications are not compatible with existing public cloud systems.

This approach is more commonly adopted among the financial services, government and healthcare sectors.

Go for public cloud when…

● Usage pattern or demand for capacity is relatively unpredictable, for instance, when a new application is first launched. Public cloud solutions provide flexible options to rapidly scale up or down after implementation.
● A limited budget is allocated, making it unfeasible to deploy any private or hybrid cloud systems, and hence sharing a cloud infrastructure with other users can be more economical.
● A lack of in-house expertise or resources for management and implementation of the cloud infrastructure, while professional vendors are able to provide readily-made, easy-to-use hardware, software and support that suit the business demands.

This approach is more commonly adopted among SMEs and companies in the retailing and manufacturing sectors.

In cloud, there is no one-size-fits-all approach. Even though the majority of companies are looking at hybrid cloud nowadays, and this trend seems to be accelerating, it may just not be right for your business. A purely public or private cloud strategy still provides unique values to many companies regardless of industry or size. The key is to evaluate the options realistically based on actual user demands and usage situations, as well as the company’s IT infrastructure, support, objectives and plan.

¹https://www.idc.com/getdoc.jsp?containerId=prAP41538916