{"id":1332,"date":"2019-04-25T15:47:55","date_gmt":"2019-04-25T15:47:55","guid":{"rendered":"https:\/\/www.cloudnowtech.com\/blog\/?p=1332"},"modified":"2022-03-30T18:27:38","modified_gmt":"2022-03-30T12:57:38","slug":"public-cloud-vs-private-cloud-the-cost-factors","status":"publish","type":"post","link":"https:\/\/www.cloudnowtech.com\/blog\/public-cloud-vs-private-cloud-the-cost-factors\/","title":{"rendered":"Public Cloud Vs Private Cloud – The Cost Factors"},"content":{"rendered":"

Now that <\/span>most companies<\/span><\/a> from around the world have a cloud presence, a new debate has surfaced. Should your company go for a <\/span>public cloud or a private cloud hosted on a data center<\/span>? Considering that cost is one of the most important factors affecting this decision, let\u2019s look at a few factors that affect the cost of both the options. <\/span><\/p>\n

Direct and Hidden Costs<\/b><\/p>\n

A <\/span>private cloud<\/span> is often considered to be more expensive as it comes with its own dedicated consultation and management team for any type of architecture. This prompts most companies to go for a <\/span>public cloud platform<\/span> like Google Cloud<\/a> or Microsoft Azure or Amazon\u2019s AWS. However, these<\/span> public cloud platforms<\/span> come with several hidden costs. For example, a charge is levied by public cloud companies for simply moving traffic between the virtual machines using your application. In addition to this, <\/span>public cloud companies<\/span> charge an additional 20% towards background management and maintenance charges. <\/span><\/p>\n

Server Utilization and Resource Efficiency<\/b><\/p>\n

The cost also depends on an organization\u2019s ability to manage its infrastructure and hardware resources. Organizations which efficiently optimize server utilization across numerous servers can have a Total Cost of Ownership (TCO) advantage by choosing <\/span>private clouds<\/span>. On the other hand, if the expected load is clearly dynamic, variable and significantly smaller, <\/span>public clouds<\/span> can be financially more attractive.<\/span><\/p>\n

Another important consideration is the number of virtual machines which can be managed per engineer. If the number of virtual machines an engineer can manage is more than 400, then a <\/span>private cloud<\/span> would be more budget-friendly. <\/span><\/p>\n

In case the infrastructure is utilized only for half its capacity, your engineer would be required to manage at least 1000 virtual machines to have a TCO advantage. If your organization is unable to achieve that level of efficiency, it would be financially better off with a <\/span>public cloud<\/span>.<\/span><\/p>\n

When it comes to on-demand provisioning of resources, the <\/span>public cloud<\/span> is the least wasteful. This eliminates the need for organizations to worry about capacity planning, which in itself could be expensive in terms of resource spend.<\/span><\/p>\n

Ultimately, it all comes down to finding the sweet spot of utilization management and resource efficiency rates to decide whether a private or public cloud platform is right for your organization.<\/span><\/p>\n

CloudNow Technologies is a <\/span><\/i>cloud consulting company<\/span><\/i><\/a> with a host of services for every cloud requirement. We offer comprehensive <\/span><\/i>cloud consultation services<\/span><\/i><\/a> which include analyzing requirements, optimizing solutions and delivering results, whether it is on the <\/span><\/i>public or private cloud<\/span><\/i>. Get in touch with us<\/a> to know more about our services and how it will help your organization. <\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Now that most companies from around the world have a cloud presence, a new debate has surfaced. Should your company go for a public cloud or a private cloud hosted on a data center? Considering that cost is one of the most important factors affecting this decision, let\u2019s look at a few factors that affect […]<\/p>\n","protected":false},"author":10,"featured_media":2476,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[279,28],"tags":[96,232,236],"class_list":["post-1332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud","category-cloud-computing","tag-cloud-consulting-services","tag-private-cloud","tag-public-cloud"],"yoast_head":"\nPublic Cloud Vs Private Cloud - The Cost Factors - Discover Better Value Faster<\/title>\n<meta name=\"description\" content=\"Choosing between a public and a private cloud is an important financial decision. 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