For companies with budgetary requirements in mind, the most affordable solution is often seen as the best. And, to many companies, this means public cloud access by default. Public cloud infrastructure is easy to implement and cheap to start with, especially for those with only a handful of employees. However, ease of use does not necessarily mean that public clouds are always the most cost-effective option.
When most people think of private clouds, they picture private clouds that are established and managed by a company, much like how traditional servers are owned and operated. This is certainly one form of private cloud, and can be a popular choice for larger enterprises with unique storage needs and the resources to construct and manage a web-based infrastructure. This infrastructure option isn’t common for those who don’t need this kind of platform as there is virtually no difference between the costs and demands of owned private clouds and traditional servers. However, this isn’t the only form private clouds can take.
Arguably more popular is the hosted private cloud. These clouds are maintained by a third-party provider but are unique to one company. Cloud storage isn’t partitioned between users as is the case with standard public clouds; instead, each cloud is for the use of an individual customer. This arrangement provides the same benefits as a public cloud – no on-site resources needed to manage cloud storage – with the added security and flexibility of a private cloud.
In spite of the additional services that come with a private cloud, there actually isn’t a significant price gap between a private cloud environment and a public cloud. It may seem this way on the surface – and it’s true, the per user cost for a private cloud is higher on average – but just looking at costs does not provide a true apples-to-apples comparison. A hosted private cloud like Avatara’s CompleteCloud solution goes beyond simple storage. Users also receive hands-on security resources, around-the-clock access to IT resources, and utility coverage, providing an all-in-one solution that encompasses a lot of extraneous expenses.
When these factors are taken into account, the total cost of ownership of managed private clouds can actually be cheaper than public alternatives.