04 August 2021

The different types of cloud computing services and how they influence your business

Cloud computing is a service that is based on remote sharing of computing power. Its main advantage is the availability of data stored on it anywhere and anytime. It is also a beneficial solution because of its scalability based on changing needs within the company. There are several types of cloud computing services. Which one is the best option? What impact do they have on the business and its growth?

Private cloud

Private cloud refers to processed resources that are used by only one company or organization. It may be located in the organization's local data center, or hosted by an outside company. In this case, the services and infrastructure are maintained on a private network. Private cloud definitely makes it easier to adapt resources to the requirements of a specific IT infrastructure. It is used especially in financial institutions and government organizations, i.e. everywhere where data availability should be protected at the highest level. A private cloud offers the ability to better customize its environment to meet specific business requirements. Resources located on it are not shared, which translates into their increased security. Private cloud is also characterized by greater scalability.

Public cloud

This is the most popular type of cloud computing deployment. The servers and storage located in the cloud are owned by third-party providers. They are responsible for operating them and making them available to users over the Internet. By opting for a public cloud, you have the same hardware, storage, and networking equipment at your disposal as other organizations and companies using this cloud computing. This type of service can be compared to "lease". It is a popular solution among others because of the low cost, there is no need to purchase hardware and software. We pay only for the services that we use. With a very extensive network of servers, public cloud is distinguished by high reliability and good protection against failure. Any maintenance work is done by the service provider, which translates into savings of time and money. According to the IDC report, public cloud infrastructure spending will grow at a 9.5% CAGR through 2024, equivalent to 67.4% of total spending. Spending on private cloud infrastructure will grow at a CAGR of 9.8%.

Hybrid cloud

The combination of private and public cloud infrastructure is hybrid cloud. We can move data between two environments within it. Companies choose this solution because of data independence and meeting legal requirements. The big plus of this option is edge load. The computing power is moved to the IoT devices, so closer to the data. As a result, devices need less time to communicate with the cloud. This reduces latency and can work very well even during extended periods of offline operation. An organization opting for a hybrid cloud gets more flexibility and plenty of options for security, deployment and compliance. In addition, it can expect to make better use of its existing infrastructure. The company can maintain a private infrastructure for the most confidential and sensitive resources. It is also a cost-effective solution in terms of money. You only pay for additional computing power when you need it. Hybrid cloud is characterized by great flexibility. We can use resources in the public cloud when it is necessary. Private cloud is the best solution for large companies and organizations where all business operations require increased control over the environment. Confidential data is stored on the servers and should have increased protection. The public cloud is a cheaper option and will definitely prove to be the right choice for smaller businesses expecting external support. Hybrid cloud computing is worth choosing if we want both high scalability of resources and flexibility, as well as relatively low costs.

Lukasz Bozek

Lukasz Bozek is a founder and CEO of Softiero, a graduate of the Warsaw School of Economics and MBA at Lazarski University. Lukasz started his career as a FX dealer at Santander Bank. As a passionate of new technologies he founded Softiero which is developing innovative tech startups.


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