Comparing the Benefits of the Public, Private, and Internal Clouds

Cloud choiceCorporate IT managers have many choices when considering IT infrastructure and data storage requirements: the public cloud, the private cloud, and/or in-house cloud solutions. As cloud solutions have matured, earlier reservations that some had about reliable access and data security have been reconciled, and most recognize the cloud’s many benefits, especially it’s easy access, lower costs, and flexibility.

Companies can use the cloud for the provision of software (Software as a Service), as a virtual data center, or–among other options–as a software platform to develop unique software solutions. Each cloud solutions has its distinct benefits.

The Public Cloud

Public cloud services are offered on a subscription basis. These services are invariably shared by multiple users and are usually used to provide SaaS solutions.

Some of the benefits of this approach include the following:

  • Minimal up-front expenditure that eases entry for smaller companies.
  • Flexible charges based on actual usage.
  • Scalable solutions that can be readily ramped both up and down in response to needs.
  • Minimal IT staffing requirements.
  • Provision of advanced data security management, including data backups and disaster recovery processes.

The cloud has enabled outsourcing like never before. In 2013, according to the Wall Street Journal, it was expected that outsourcing of IT services globally would amount to $483 billion.

Private Cloud

The private cloud differs in that services are not shared and are usually used by large companies as an extension of their own in-house data centers or in place of them. IT services in a private cloud are frequently outsourced but are for the exclusive use of the organization.

The main benefits of a private cloud are these:

  • Possibly, there will be no need for the purchase of expensive IT hardware. Although total costs still have to be carried by the company utilizing the private cloud, this can be on a subscription basis.
  • Companies have full control of access.
  • The private cloud is inside the corporate firewall.
  • Users provide, run, and manage their own software applications using a dedicated in-house IT team.

The real benefit of a private cloud is that organizations retain full control over their IT environment but have the benefit that the facilities are outsourced.

The Internal Cloud

The internal cloud is often also referred to as a private cloud, but in this context, it is taken to refer to a data center that is owned and run by the user. Usually, it is structured in much the same manner as a private cloud.

Benefits of the internal cloud include the following:

  • Full control of all aspects of internal cloud.
  • No reliance on outside agencies.
  • Full responsibility for security and backups.

Although the organization benefits from full control, it also carries the full cost of the infrastructure and typically has to finance the purchase of hardware and software.

Which Solution?

Each solution offers benefits but also disadvantages. The choice largely depends upon the extent to which the organization desires full control over its IT infrastructure against the greater flexibility and usually lower cost of a public cloud solution.

In many ways, the private cloud and internal cloud are very similar, but what they do offer is complete choice when it comes to software selection, control, and customization; with the public cloud, choices are more limited.

The Advantages of Colocation Market Growth

collocationFrom large corporations to small companies, businesses today are crossing over to colocation services. This trend continues to grow due to the need to quickly and efficiently access new technological advances while reducing business expenses. Colocation also reduces the stress of constant employee training as technologies change.

In general, there is an overwhelming drive in today’s business world for more IT capabilities to stay productive and ahead of the pack. But what exactly is driving the growth in the colocation industry? Analysts point to the following qualities businesses must have in order to survive and prosper in today’s ever-changing markets:

Power and Efficiency

A center designed to merge technology and house it off-site allows companies to focus on other employee needs and expenses. Colocation not only provides independent outsourced business access to more power, it also improves networking capacity. It eliminates the need to plan and build a data center on site that must be efficiently run and safeguarded.

Safety and Security

Whether it’s tornadoes, earthquakes, or floods, any crippling disaster can compromise the safety of data. Often, data might be completely lost forever. Off-site data centers act as a protective backup for company data and networking needs in the event of fire or other natural disasters.

Security breaches are another major problem. In fact, experts say concerns about security are the main factor behind the growth of the colocation market. Colocation offers an expert solution to security issues because, through this system, businesses can have access to a range of professionals who manage threats, contain security breaches, and make the required repairs. This means that company managers are freed from the burden of keeping private data or other information safe, and can focus exclusively on productivity.

Budget and Expenses

Colocation provides a great budget-cutting solution when it comes to data usage, storage, and maintenance. The option allows businesses to pay only for the networking and storage they require. Thus, they don’t have to use either generic or expensive exclusively-tailored bundle packages to fit their needs.

A colocation solution also relieves companies of the costs of having to build, staff, and maintain data centers of their own. The fees for this technological option far outweigh the expenses of having a company data center on site.


As technology moves forward, the colocation option is becoming more popular. Companies now have a choice between hiring highly skilled workers who can deal with new technological trends or adopting the colocation solution to handle and maintain off-site date and equipment. Colocation solutions, managed by an off-site provider, eliminate the expense of an in-house specialist. Also, it resolves the problem of continual employee training as data storage and networking solutions change with the times and trends.

Whether in the context of cost-effectiveness, networking, or staffing advantages–colocation allows a business to have more for less. Industry experts have projected statistics that predict a Compound Annual Growth Rate (CAGR) of 13.59% through 2018. The increasing demand for this alternative is fueling growth and innovation as it benefits all types of business models. In return, the efficiency of such an option saves money not only for companies but also for consumers due to a trickle-down effect. In this situation, everyone wins.

If you’re considering colocation solution for your business, now is the time to take the plunge, merge your technological needs and move them safely and efficiently off-site.