INTRODUCTION

Cloud computing is often heard as part of the business jargon today. But in reality, it is the storage of software programs, applications, and data on a network of remote servers on the internet instead of directly on a local server or personal computer. Cloud computing is more efficient, and it fosters faster business operations. Due to this reason, its adoption rate has increased tremendously in recent years. Especially in the face of a global pandemic, more organizations are turning to cloud-based SaaS models.

According to GlobeNewswire, the cloud computing market is valued at US$ 405,295.8 million in 2022 and is expected to reach US$ 1,465,818.2 million by 2028, growing at a CAGR of 23. 9% from the forecast period 2022 to 2028.

Generally, cloud computing is categorized into three types:

• Public cloud
• Private cloud
• Hybrid cloud

In detail, let’s now understand these cloud computing types and their benefits for businesses:

WHAT IS PUBLIC CLOUD?

The public cloud is the most significant solution shared across organizations or cloud tenants. It is operated by a third-party cloud service provider and delivered via the internet.  The  third-party cloud service provider owns and maintains all cloud resources, such as the servers and databases, and provides access based on a subscription model. Some of the most significant public cloud providers are SAP HANA, Amazon Web Services (AWS), VMware, IBM, Google Cloud Platform, and Microsoft Azure. There are primarily three types of public cloud services:

• Software-as-a-Service (SaaS) – With SaaS, an external cloud service provider gives the user access to cloud applications that can be accessed via a web browser or a dashboard or API.
• Platform-as-a-Service (PaaS) – With PaaS, an external cloud service provider caters to the hardware and a basic application-software platform to the user. The user can use this infrastructure as the backbone to develop and maintain applications based on their requirements.
• Infrastructure-as-a-Service (IaaS) – With IaaS, an external cloud service provider rents out cloud infrastructure to a user and is solely responsible for maintaining infrastructure involving the data storage, servers, network, etc. On the other hand, the user handles the software-related resources such as the OS and the applications independently.

Pros

Cons

Reduced costs – No need to purchase hardware or software; instead, you only pay for the infrastructure you use. Controlled access –  Helps secure organizational data. No maintenance – The service provider takes care of configuring and maintaining the infrastructure on the cloud. Highly scalable – Resources can be scaled up or down based on your business needs. This lends flexibility to the resources. High reliability – A vast network of geographically distributed servers with failsafe strategies makes the resources secure and reliable.

Reduced control – Since a third-party provider controls your data storage, you cannot control how and where it is stored. Increased security threats – Due to multi-tenancy and shared security norms among users, there are also shared security threats. Swiftly mounting costs – If you are not careful, subscription or usage costs can swiftly increase with increased cloud usage.

WHAT IS PRIVATE CLOUD?

One organization uses a private cloud exclusively, with all the resources dedicated to one business. The business can either opt to hold their private cloud on-premise, i.e., at the company’s physical data center, or employ a third-party provider to host their cloud. In the case of hosted private clouds, the third-party provider maintains and manages the cloud for a stipulated fee from the organization. One of the primary benefits of having a private cloud is that an organization can customize its resources to meet its requirements.

Pros

Cons

Increased control – Since the cloud is dedicated to one business, the organization can control how its data is stored and managed, both in the case of on-premise or a third-party cloud. More flexible – The organization can configure the cloud and its  specifications as per their requirements and need not make peace with a cookie-cutter cloud. High security — Since there are no shared cloud users, you can specify the type of security you want to have in place. This, in turn, makes your dedicated cloud infrastructure highly secure against unauthorized access or other security breaches. Highly customizable – Businesses can customize all aspects of the private cloud to suit their business requirements.

Higher Cost – Since organizations need to invest in and maintain their cloud infrastructure, the Total Cost Of ownership (TCO) is much higher than a public cloud. Reduced scalability – Scaling the cloud infrastructure is both costly and time-consuming as all resources, including the software, hardware, and network, need to be modified. Complex maintenance – In the case of an on-premise cloud, organizations will have to maintain the entire infrastructure and its resources.

WHAT IS HYBRID CLOUD?

As the name suggests, a Hybrid cloud is a cloud computing ecosystem that combines the use of both public and private cloud services to create a unified, flexible, and cost-effective cloud infrastructure. Based on the user’s needs, a hybrid cloud allows application portability between the private and public parts of the cloud, wherein resources from either cloud type can be used to perform the required tasks. A Hybrid cloud is considered to be considerably better than exclusively using public or private cloud computing since it is more cost-effective and efficient.

Pros

Cons

Increased control, scalability, and flexibility – Companies can maintain a private cloud for susceptible assets and use additional public cloud resources as required. Optimum cost—Since you scale to the public cloud only when required, you can cut costs. High security – Since there are no shared cloud users, you can specify the type of security you want to have in place. Your dedicated cloud infrastructure is secure against unauthorized access or other security breaches. Reduced downtime – There is no downtime due to the ability to move resources between the public and private clouds as required. Data can also be backed up on public servers when required.

Juggling between multiple servers – Organizations must balance multiple resources, vendors, and servers simultaneously. Complex maintenance – Since this model has multiple facets, the overall maintenance becomes complicated and may lead to oversights due to lack of visibility.

Quick Comparison of Cloud Computing Types

Let’s quickly compare the pros and cons of the three cloud computing types to understand better what is best for your business.

Public Cloud	Private Cloud	Hybrid Cloud
Less costly	The Total Cost of Ownership leads to higher cost	Optimal costs
Highly reliable	Highly customizable	Highly flexible and customizable
Highly scalable based on need	Reduced scalability	Extremely scalable
No maintenance-related liability for the user	In the case of on-premise clouds, the user is responsible for the entire maintenance	Maintenance can get increasingly complex due to more resources that are involved
User has lesser control over the infrastructure used	User has complete control over the infrastructure used	Lesser probability of resource downtime
Costs can grow rapidly based on usage	Dedicated resources	Constant juggling between multiple resources
Risk of security threats from shared resources	Extremely secure	Balanced resource optimization

PUBLIC vs. PRIVATE vs. HYBRID CLOUD MODEL – Which one to choose for your business?

Now that we have seen the pros and cons of the different cloud computing systems, the most important question arises – which model should you choose for your business? Well, here are some pointers to keep in mind.

• If your organization has an existing on-premise infrastructure, creating your own private cloud would be an effective investment. However, maintenance, management, and security liability fall squarely on your shoulders. But if your business requires high security, a private cloud is a way to go as you can control all security areas, be it the physical infrastructure or the databases and networks. Private clouds are often preferred by entities such as banks and federal agencies that deal with secure and critical information daily.

• If your business has specific computing needs and has less sensitive data needs that require a predictable set of resources, then you can opt for a public cloud. Public clouds are entirely managed and maintained by a cloud service provider and are constantly kept up-to-date to provide you with high-functioning resources.

• However, if you need the best of both worlds, opt for a hybrid cloud that unifies public and private cloud environments. While you can use the public cloud to perform temporary and less critical tasks. And you can use the private cloud to perform highly secure and confidential tasks. Simply put, hybrid clouds are the best option in highly regulated industries.

CONCLUSION

While we cannot single out a specific type of cloud computing as the best, you can make an informed choice based on your business requirements. To start with, understand the benefits, risks, and costs associated with each cloud solution. Following this, assess your own business and infrastructure capabilities to determine the best cloud computing option to suit the same. However, irrespective of which cloud environment you choose, ensuring that you have the right team and cloud service provider necessary to execute the cloud adoption successfully is critical.

HOW AAKIT TECHNOLOGIES CAN HELP?

AAKIT Technologies deliver consistent and high-impact solutions to help create agile organizations. We are a certified SAP partner, and leading businesses across industries trust us as their long-term partner for implementing SAP solutions to derive immense value. We offer a new SAP-generation product suite to help organizations worldwide solve complex real-time business problems and unlock business value from IT investments.

To know how we can help, write to us at sales@aakit.com or reach out at Contact Us | SAP consulting companies in India – AAKIT Technologies .