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Cloud computing - private or public option

We've all heard or read about private and public cloud. AWS by Amazon stands out as a synonym for public cloud. Amazon has become a leader in this space. Amazon clearly having the first mover advantage, rest of the providers are still catching up. I must admit with AWS, it clearly inspired a entrepreneurial spirit as small entrepreneurs find it easy to host their nascent applications on AWS and then use the freebies offered as joining credits to do more.
Public cloud gave large enterprises to explore uncertain and spiky application needs. A business unit who wants to create a PoC of an business application, needn't wait for the captive IT to commission a server in production environment, provide access et.al. Public cloud with it's PaaS component makes it way too easy to setup a instance, test the PoC and make a business decision in the time it would have taken the traditional IT to commission the requirements.

With more penetration of cloud or businesses having a cloud first strategy, hybrid cloud came into existence where private cloud bursts into pubic cloud during peaks making it easy for business to go on business as usual without worrying about IT becoming a limiter.

The major question is the costs. Public cloud looks attractive but as you start running it, the monthly bill might add up to more than what the actual piece of hardware, software and the utility bills might come up to. The strategy to not to fall into the trap is to have a clear usage pattern following up into accounting principles. The usage pattern needs to be clear, concise and accurate to the limit that the additional costs doesn't leave you undone for all the efforts.

Operational lease, capital lease or utility based billing are the options that most the enterprises take up. Setting up a private cloud could so be so much expensive if its not planned well. The strategy has to be crafted application class by class to regions the enterprise operates. Say for example. setting up websites on a public cloud is a very cost effective option to hosting a business critical application. There is well too much of thinking needed in terms of usage patterns to the contracting model.
As large organizations go, hosting the cloud in-house is cost effective, provides utmost control and is right under their nose to operate it to the dynamics of their business keeping option of off-loading non business critical functions on public cloud to make the cost savings.
Nitin Keshav

Nitin Keshav

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