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For all its promises of flexible data access and secure data storage, cloud computing technology can be a money sink. Business circles never run out of horror stories of costly failed attempts to “move to the cloud.” When things don’t work out the way business owners hope, adopting cloud technology takes a backseat – sometimes to be forgotten.
However, as the cloud becomes more necessary for growth, mastering the tech will soon be a matter of course. Small businesses may lose the luxury of doing business without it. Last year, the Organisation for Economic Co-operation and Development (OECD) reported that 47% of small businesses in OECD countries used cloud services.
Any business that wants to succeed in cloud adoption must take the first steps correctly. This starts with choosing between a public and private cloud system. Here’s a closer look at what they are and which one best suits small businesses.
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Public Cloud Infrastructure
Money can be tight for small businesses, especially start-ups. Investing in new technology like cloud computing tends to be lower on their list of priorities compared to marketing and sales, at least at this stage of a business’s growth. Think about the requirements:
- Hiring cloud specialists to form an in-house IT department
- Setting up the office to house the necessary infrastructure
- Limited scaling unless the business invests more in upgrades
All these won’t come cheap – and sparing a cent risk being left without a working system.
They often opt to leave the cloud aspect to public cloud technology and services. As firms in the business of delivering quality solutions, public cloud service providers make sense for cash-strapped small businesses. Everything from cloud migration to managed cloud services is within their realm of expertise.
In a public cloud setup, the cloud provider owns all the hardware and software necessary to operate the system. While the client doesn’t have direct control, the provider is liable for ensuring the whole thing runs without hiccups. It’s also liable for technical issues that lead to system downtime or security breaches.
Public cloud deployments are typically multi-tenant, meaning clients share resources such as cloud storage and cloud-native applications. The cloud provider allocates resources to each client based on their needs. For security, it isolates one client’s data from another’s.
If a business suddenly experiences more demand for resources, it can ask the provider to raise its limit at an additional cost. Conversely, if it experiences less demand, it can ask to lower its limit to save on costs.
Private Cloud Infrastructure
In some situations, an on-premises cloud deployment model is inevitable. This typically happens among small businesses in highly regulated industries such as financial services and healthcare. For example, a local clinic in the U.K. is obligated to keep its patient data confidential and secure under the Data Protection Act (DPA).
A public cloud deployment isn’t ideal here because of its multi-tenant architecture. Even with adequate security measures and practices, the risk of a patient’s information falling into others’ hands remains. Keep in mind that no system is immune to cybercrime, but there are ways to reduce your risk.
Small businesses in such scenarios can benefit more from setting up their private cloud system. Here, the company owns, operates, and maintains the infrastructure and is thus responsible for problems that lead to downtime or breaches.
That said, the business has complete control over the cloud system and all its resources (known as single-tenant). Without other companies sharing the resources, the system can better handle any spike in traffic and data requests. It can also impose its own policies on data access to help safeguard its crucial business assets.
Security is more manageable in a private cloud system, but that doesn’t necessarily mean it’s more secure. It falls to maintaining a corporate culture that’s committed to preventing hackers and other criminals from accessing data and assets. Step one here is to develop a habit of adopting security standards.
In many countries, businesses are required by law to disclose a successful data breach to their customers as soon as possible. This way, they’ll be encouraged to take proper steps to avoid this scenario in the future.
Which is Better?
Below is a summary of the pros and cons of both cloud systems.
| Criteria | Public Cloud | Private Cloud |
| Infrastructure Management | Owned, operated, and managed by the cloud service provider | Owned, operated, and managed by the small business itself |
| Cost Efficiency | Lower cost, as the provider pays for the cloud system’s upkeep and upgrades | Higher cost, as the owner is responsible for paying for the upkeep and upgrades |
| Scalability | The provider has the tools and skills to scale a client’s cloud needs up or down | The small business needs to invest in requirements like an on-premises IT team |
| Cloud Architecture | Multi-tenancy: resources are shared among other tenants or businesses | Single tenancy: the system and its resources work for only the owner |
| Data Security | Good security for small businesses that don’t require strict regulation | Required for regulatory compliance with data privacy laws like DPA |
| Liability | The service provider is liable for issues that affect a business’s operations | The small business is liable for problems that affect its activities |
Because cost is a major consideration for small businesses, a public cloud system can be a start. As the company grows, especially in customer count and scale of operations, they may want to start thinking about investing in a private cloud deployment if it’s sensible.
Small businesses in highly regulated industries can better meet their requirements with a private cloud infrastructure. As such, choosing the right cloud provider is key to making such an investment budget-friendly.
Conclusion
Public and private cloud infrastructure can be effective for small businesses when used in ideal situations. Whatever you choose, both entail discussing with a cloud service provider to create the perfect cloud solution. Find one and give them a call today to get started.
