Summary: The article explains private, public, and hybrid cloud environments, their pros and cons, and how NordLayer secures these models for performance and protection.
Cloud computing is changing how businesses of all sizes manage IT resources, making it more scalable and flexible. However, as companies embrace the cloud, they face an important decision: which type of cloud is right for them?
Whether it's a public cloud, a private cloud, or a hybrid cloud, each option has its benefits, challenges, and ideal use cases. Choosing the right cloud model isn't just about cost—it's about matching the cloud environment to your specific needs in terms of security, performance, and control.
This guide will help you understand the differences between different cloud models. We'll also look at how cloud security tools like NordLayer can keep your environment safe, whether using a private cloud, public cloud, or a combination of both.
Overview of cloud computing
Cloud computing refers to delivering computing resources—such as storage, processing, and applications—over the internet. Organizations use cloud services instead of physical servers for flexibility, scalability, and cost savings.
Choosing the right cloud service provider and model is vital for businesses and private and public clouds. It impacts operational efficiency and security. To dive deeper into securing your cloud environment, explore this guide to cloud security.
What is a private cloud?
A private cloud is a computing environment dedicated only to a single organization. Managed either on-premises or by a third-party cloud service provider, private clouds are ideal for businesses that need high levels of security and control.
How a private cloud works
Private cloud environments use dedicated infrastructure, either hosted in an on-site data center or operated by a cloud provider. This setup ensures greater control over data and resources.
Benefits of private cloud
When it comes to security, compliance, and customization, private clouds provide businesses with a tailored solution designed to meet their specific needs:
Enhanced security and compliance. Organizations have full control over their private cloud environment, making it easier to meet regulatory requirements.
Customizable solutions. A private cloud can be tailored to meet specific business needs.
Stable performance. Dedicated infrastructure ensures uninterrupted operations, free from resource-sharing issues common in public clouds.
Private clouds are an ideal choice for organizations with advanced security needs because they offer tailored solutions and complete control over data.
Private cloud disadvantages
Although a private cloud can be a secure and reliable solution, it does require a considerable investment in both infrastructure and ongoing management:
High costs: Building and maintaining a private cloud requires a significant investment and ongoing expenses
Complex management: Managing a private cloud infrastructure often demands advanced IT expertise
Scalability challenges: Scaling a private cloud typically involves buying additional hardware, which can slow things down
For companies that prioritize scalability and ease of use, the limitations of private clouds may outweigh their benefits, especially when compared to public cloud solutions.
Use cases
Private cloud environments are ideal for businesses that need strict security, regulatory compliance, and full control over their infrastructure. For example, healthcare organizations rely on private clouds to manage sensitive patient data while complying with regulations like HIPAA. These systems ensure that data is securely stored and accessible only to authorized personnel.
Similarly, financial institutions benefit from private clouds by securely handling sensitive customer information and large transactions, meeting compliance standards such as GDPR or PCI DSS. Enterprises requiring tailored workflows or proprietary applications also choose private clouds because they can be customized. Additionally, private clouds are great for high-performance computing (HPC) tasks, such as scientific simulations or complex analytics, offering consistent and reliable performance.
What is a public cloud?
A public cloud environment is a cloud service shared among multiple organizations. Providers like AWS, Microsoft Azure, and Google Cloud offer public cloud environments on a pay-as-you-go or subscription basis.
How a public cloud works
A public cloud is hosted on the cloud provider's infrastructure, where businesses can access shared resources over the internet. This model allows companies to pay only for the resources they use, providing a flexible and cost-effective solution.
Benefits of public cloud
A public cloud offers several key advantages for businesses:
Affordability. Public clouds have no upfront infrastructure costs, making them accessible for businesses of all sizes.
Scalability. Resources can be scaled quickly to match changing business needs.
Ease of use. Managed by the cloud provider, public clouds require minimal setup or maintenance.
Public cloud disadvantages
While a public cloud offers significant benefits, there are some challenges to consider:
Security concerns: Data in a shared environment is potentially vulnerable to breaches
Performance variability: Sharing resources can slow down performance during peak usage
Limited customization: Public clouds usually can’t adapt to fit specific business needs
Use cases
Public clouds are a great fit for businesses seeking cost-effective scalability and ease of use. Startups and small businesses frequently adopt public clouds because they eliminate the need for upfront infrastructure investment, allowing them to scale resources as they grow. E-commerce platforms benefit from public clouds during peak shopping seasons, as the resources can quickly adjust to higher traffic without disrupting operations.
Public clouds are also popular among developers and tech firms. They offer flexible environments for testing and deploying applications without the overhead of physical servers. Media companies and streaming services use public clouds to distribute content globally, benefiting from their availability and robust delivery networks. Lastly, public clouds are ideal for disaster recovery and backup solutions, providing businesses with an affordable, off-site option to secure their data.
Private cloud vs. public cloud
When choosing between private and public clouds, consider factors like cost, scalability, and security. Here's a quick comparison:
Virtual private cloud vs. private cloud: Key differences in short
There are many similar terms involved in cloud computing, and a Virtual Private Cloud (VPC) is one of them. A VPC is a secure, isolated section within a public cloud where businesses can run their workloads with additional layers of security offered by a cloud provider.
In contrast, a private cloud is a dedicated infrastructure just for one organization. This distinction influences how each is implemented and managed. To learn more about "What is VPC?" and VPC vs. VPN, explore VPC best practices to optimize its deployment for your organization’s needs.
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Hybrid cloud: A middle ground?
A hybrid cloud service provider integrates private and public cloud environments, allowing businesses to use each model strategically.
Benefits of a hybrid cloud
A hybrid cloud seamlessly integrates private and public cloud environments, allowing businesses to use both models strategically.
Flexibility. Critical workloads can stay in the private cloud, while less sensitive tasks use public resources.
Cost efficiency. Hybrid clouds combine the cost savings of public clouds with the security of private ones.
Scalability. Businesses can easily scale their resources using public cloud services.
By adopting a hybrid cloud, businesses can balance performance, security, and cost-efficiency. It’s a way to adapt to evolving demands with greater agility.
Ideal scenarios
Hybrid clouds combine the strengths of public and private clouds, making them suitable for businesses with diverse operational needs. Organizations experiencing fluctuating workloads often benefit from hybrid clouds. They can use private resources for steady operations while accessing public resources to handle demand spikes.
Industries with strict compliance needs, such as healthcare and finance, often adopt hybrid models. In these models, sensitive data is secured in private clouds, while public clouds are used for broader applications like analytics. Companies transitioning to multi-cloud strategies use hybrid cloud setups as a stepping stone, enabling flexibility and resilience through redundancy.
Hybrid clouds also benefit global enterprises with distributed teams, as they provide low-latency access via local public cloud resources while safeguarding core operations in private infrastructure. Furthermore, businesses focused on innovation often develop in public clouds for cost efficiency and later deploy stable solutions in private clouds for reliability and security.
Which cloud model is right for your business?
Considerations based on business size
The size of your business plays a crucial role in determining the most suitable cloud model. Start-ups often benefit from public clouds due to their affordability and the ability to scale rapidly without significant upfront investments. Public clouds enable small businesses to launch and grow without the burden of managing physical infrastructure.
Medium-sized enterprises typically find hybrid clouds most suitable as they balance cost-effectiveness with enhanced security and performance. These organizations can use public cloud resources for routine workloads while securing sensitive data or strategic applications in private cloud environments.
For large corporations with complex operations, private clouds are often the ideal choice. These enterprises require high levels of security, control, and customization to meet their operational needs and regulatory requirements. A private cloud ensures a stable infrastructure for managing large volumes of data and proprietary applications.
Industry-specific needs
The choice of cloud model also depends on the industry and its specific requirements. For instance, industries like healthcare and finance must prioritize compliance with strict regulations such as HIPAA and PCI DSS. These industries typically rely on private or hybrid clouds to secure sensitive data and ensure compliance while benefiting from cloud computing's scalability and flexibility.
Technology and media companies, on the other hand, often require a highly scalable and flexible environment to manage dynamic workloads and unpredictable traffic spikes. These businesses benefit from public clouds for their cost efficiency and rapid scalability or from hybrid clouds that combine the advantages of both models for enhanced reliability and customization.
Long-term goals
Businesses with long-term growth ambitions often lean towards hybrid or multi-cloud strategies to future-proof their operations. Hybrid clouds offer the flexibility to adjust resources as needed, allowing companies to adapt to market demands while maintaining cost efficiency. Multi-cloud strategies provide even greater flexibility by leveraging multiple cloud service providers. This approach helps businesses optimize performance, avoid vendor lock-in, and enhance system resilience.
By considering business size, industry-specific needs, and long-term goals, organizations can identify the cloud model that aligns with their operational priorities and growth path.
Similarities between private cloud and public cloud services
While private and public cloud services have distinct differences, they share several key principles that make them essential for modern cloud computing. These similarities highlight how both models address everyday business needs, offering flexibility, efficiency, and enhanced accessibility.
Virtualization: Both use virtualization to deliver cloud resources
Remote accessibility: Users can access resources from anywhere
Cost efficiency: Both models reduce costs compared to traditional IT
Data backup options: Enable reliable disaster recovery solutions
Cloud adoption trends: Both contribute to increased global cloud integration
Understanding these shared features shows why both types of clouds are widely adopted across industries. They support businesses in optimizing their IT strategies and advancing cloud migration efforts globally.
How NordLayer secures cloud environments
NordLayer offers comprehensive solutions for securing access to private, public, or hybrid cloud environments. NordLayer delivers tools to ensure safe access to VPCs, making public cloud adoption safer for businesses of all sizes.
Key NordLayer’s solutions
Secure Remote Access: Provides secure connections between devices, wherever they are, ensuring smooth business operations.
Whether you're using a private or public cloud, safeguarding access to it is essential. Implement multilayered authentication methods to ensure that only authorized users and devices can access these environments.
Also, use Site-to-Site functionality to ensure employees access these environments only through Virtual Private Gateways, which ensure your remote connections are encrypted.
Enhance your security with robust ZTNA measures by setting access control rules with features like Cloud Firewall and Device Posture Security. Use multiple MFA options to double-check identities and enforce location-specific policies to strengthen overall protection.
Partner Program benefits
By joining NordLayer’s Partner Program, MSPs can offer these advanced solutions to their clients, enhancing their value proposition and increasing profitability.
Selecting the right cloud model can transform your operations. With added security provided by solutions like NordLayer, businesses can confidently embrace cloud services, ensuring performance and protection. Whether you opt for private clouds, public clouds, or a hybrid cloud, securing your cloud environment should always be a top priority.
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Agnė Srėbaliūtė
Senior Creative Copywriter
Agne is a writer with over 15 years of experience in PR, SEO, and creative writing. With a love for playing with words and meanings, she creates unique content. Introverted and often lost in thought, Agne balances her passion for the tech world with hiking adventures across various countries. She appreciates the IT field for its endless learning opportunities.