Public vs. Private Cloud Computing

Whether a public cloud or private cloud, the cloud computing key benefits include scalability, instant provisioning, virtualized resources and ability to expand the server base quickly. The majority of public cloud Infrastructure as a Service (IaaS) deployments are generally used for web servers or development systems where security and compliance requirements of larger organizations and their customers is not an issue.Private cloud computing, on the other hand, by definition is a single-tenant environment where the hardware, storage and network are dedicated to a single client or companyGenerally Infrastructure as a Service (IaaS) can be obtained as public or private infrastructure or a combination of the two. “Public cloud” is considered infrastructure that consists of shared resources, deployed on a self-service basis over the Internet.

“Private cloud” is infrastructure that emulates some of Cloud Computing features, like virtualization, but does so on a private network. Additionally, some hosting providers are beginning to offer a combination of traditional dedicated hosting alongside public and/ or private cloud networks. This combination approach is generally called “Hybrid Cloud”.

The “Public cloud” is defined as a multi-tenant environment, where you buy a “server slice” in a cloud computing environment that is shared with a number of other clients or tenants. Public clouds such as Amazon EC2 and Rackspace Cloud have a number of trade-offs:

  • Utility Model – Public Clouds typically deliver a pay-as-you-go model, where you pay by the hour for the compute resources you use. This is an economical way to go if you’re spinning up & tearing down development servers on a regular basis.
  • No Contracts – Along with the utility model, you’re only paying by the hour – if you want to shut down your server after only 2 hours of use, there is no contract requiring your ongoing use of the server.
  • Shared Hardware – Because the public cloud is by definition a multi-tenant environment, your server shares the same hardware, storage and network devices as the other tenants in the cloud. Meeting compliance requirements, such as PCI or SOX, is not possible in the public cloud.
  • No Control of Hardware Performance – In the public cloud, you can’t select the hardware, cache or storage performance (SATA or SAS). Your virtual server is placed on whatever hardware and network, the public cloud provider designates for you.
  • Self Managed – with the high volume, utility model, self managed systems are required for this business model to make sense. Advantage here for the technical buyers that like to setup and manage the details of their servers. Disadvantage for those that want a fully managed solution.
  • The majority of public cloud deployments are generally used for web servers or development systems where security and compliance requirements of larger organizations and their customers is not an issue.



Business Efficiency Private Cloud

Business Efficiency Private cloud hosting, on the other hand, by definition is a single-tenant environment where the hardware, storage and network are dedicated to a single client or company. Private cloud computing also has a number of trade-offs:

  • Security – Because a Business Efficiency private cloud will be dedicated to a single organization, the hardware, data storage and network can be designed to assure high levels of security that cannot be accessed by other clients in the same data center.
  • Compliance – Sarbanes Oxley, PCI and HIPAA compliance can not be delivered through a public cloud deployment. Because the hardware, storage and network configuration is dedicated to a single client, compliance is much easier to achieve.
  • Customizable – Hardware performance, network performance and storage performance can be specified and customized in a  Business Efficiency private cloud environment.
  • Hybrid Deployments – If a dedicated server is required to run a high speed database application, that hardware can be integrated into a private cloud, in effect, hybridizing the solution between virtual servers and dedicated servers. This can’t be achieved in a public cloud.
  • Dedicated Hardware – As opposed to public clouds, private clouds are not delivered through a utility model or pay-as-you-go basis because the hardware is dedicated. Private clouds are generally preferred by mid and large size enterprises because they meet the security and compliance requirements of these larger organizations and their

Business Efficiency Cloud (Private IaaS)?—It can be the difference in beating compet ition to market Infrastructure as a service (IaaS) from BES. We offer a choice of open cloud infrastructure services for IT operations. We work with major providers such as IBM, HP, Rackspace and other topt 10 IaaS providers to configure an appropriate solution for an organization. Whether to use a self-service IaaS or our fully managed IaaS to deploy both virtual and dedicated bare metal servers, develop applications and run production-ready workloads, our Business Efficiency Cloud services can guide organizations in choosing the appropriate IaaS.

Managed cloud services for critical enterprise workloads
We can assist in determining the cloud optimized for critical enterprise workloads and negotiate SLAs with up to 99.95% virtual server uptime and many advantages of a managed private cloud.

About Infrastructure as a Service (IaaS)
Infrastructure as a Service (IaaS) is a way of delivering Cloud Computing infrastructure – servers, storage, network and operating systems – as an on-demand service. Rather than purchasing servers, software, datacenter space or network equipment, clients instead buy those resources as a fully outsourced service on demand.  There are some core characteristics which describe what IaaS is. IaaS is generally accepted to comply with the following;

• Resources are distributed as a service
• Allows for dynamic scaling
• Has a variable cost, utility pricing model
• Generally includes multiple users on a single piece of hardware

There are a several IaaS providers from the largest Cloud players like Amazon Web Services and Rackspace to more boutique regional providers to choose from. As mentioned previously, the line between PaaS and IaaS is becoming more blurred as vendors introduce tools as part of IaaS that help with deployment including the ability to deploy multiple types of clouds.

Where Private IaaS Makes Sense:  IaaS makes sense in a number of situations and these are closely related to the benefits that Cloud Computing bring. Situations that are particularly suitable for Private Cloud infrastructure (both Dedicated machines and Virtual Servers)include;

• Where demand is very volatile – any time there are significant spikes and troughs in terms of demand on the infrastructure
• For new organizations without the capital to invest in hardware
• Where the organization is growing rapidly and scaling hardware would be problematic
• Where there is pressure on the organization to limit capital expenditure and to move to operating expenditure
• For specific line of business, trial or temporary infrastructural needs

Where IaaS May Not be the Best Option: While IaaS provides massive advantages for situations where scalability and quick provisioning are beneficial, there are situations where its limitations may be problematic. Examples of situations where we would advise caution with regards IaaS include;

• Where regulatory compliance makes the offshoring or outsourcing of data storage and processing difficult
• Where the highest levels of performance are required, and on-premise or dedicated hosted infrastructure has the capacity to meet the organization’s needs

NOTE:   Increasingly, a number of countries are passing laws restricting the movement and storage of data.  On-premise applications were able to leave most of the issues around the location of the data to the customers.  Many countries have strict laws regulating where data can be stored and moved beyond their national boundaries. The recent trend is to have many more unique requirements from a single country or a block of countries such as the European Union (EU).  In the United States, even some states have their own regulations. These regulations are a greater problem for the Cloud providers since the vendor must operate in each region rather than have the customer be responsible for the operation under each jurisdiction. EU regulators are creating increasingly strict regulations on the location of data used in their countries and the privacy protection of their citizens.

Compliance with governmental regulations are the greatest risk and complexity for Cloud vendors.  Failure to comply can result in the failure of a company or the imprisonment of the executives.