Private Cloud and On-Premise SAP in 2025: Where the Real Value Lies

Enterprises are increasingly reconsidering the rush to public cloud, especially for mission-critical SAP workloads. While public cloud platforms provide convenience and speed, many organizations are discovering that private cloud and on-premise deployments better align with their business priorities around control, performance, and compliance.

In 2025, the conversation shifts from “cloud-first” to “cloud-fit.” Companies are assessing which infrastructure offers the best value based on workload needs, security standards, and operational objectives. For many, the solution is private cloud or hybrid environments that combine the flexibility of cloud architecture with the governance and predictability of dedicated infrastructure.

Rethinking the Public Cloud Push: Why Some Enterprises Are Returning to Private or Hybrid SAP Models

While the public cloud market continues expanding, some SAP customers are shifting course or adjusting their cloud strategies. According to TechTarget, more organizations are participating in cloud repatriation—the process of moving workloads from public cloud back to private or on-premise environments—due to issues with cost overruns, performance problems, and regulatory concerns. In fact, many enterprises find that certain workloads, especially those linked to ERP or legacy systems, perform more reliably and cost-effectively outside the public cloud.

For SAP landscapes with extensive customizations or strict regulatory standards, public cloud can present challenges. These include latency problems, inflexible architecture, and unpredictable billing models. Conversely, private cloud deployments provide more consistent performance, lower latency, and better support for legacy SAP modules.

Organizations also encounter fewer integration issues when managing older SAP environments or custom extensions in a private or on-premises setup. This infrastructure allows better alignment with internal security policies, change management procedures, and availability expectations.

Furthermore, hybrid models enable companies to balance flexibility and control. Sensitive workloads can stay in a dedicated environment, while less critical tasks take advantage of cloud elasticity. This strategy fosters innovation while reducing operational risk.

Cost Predictability and Long-Term Value in Private Cloud Infrastructure

Public cloud cost structures are often misunderstood or underestimated. Although initial provisioning may seem affordable, ongoing charges for compute, storage, bandwidth, and support often accumulate unpredictably. For SAP environments, where uptime and performance are critical, this unpredictability becomes a budgeting risk.

Private cloud, on the other hand, allows enterprises to manage costs with greater clarity. Fixed resource pools, bundled support, and defined SLAs create a more predictable TCO over time. Many organizations have seen up to 25% cost reduction compared to equivalent public cloud setups, driven by reduced data egress, better workload optimization, and more efficient support for legacy systems.

More importantly, private infrastructure helps organizations avoid hidden costs from compliance breaches, integration downtime, or suboptimal performance. These costs often become apparent only after they impact the business.

Security, Compliance, and Data Residency: Priorities That Public Cloud Can’t Always Satisfy

Security and data governance remain top concerns for enterprises operating in regulated industries or managing global SAP environments. Private cloud gives organizations control over architecture, enforces security policies consistently, and ensures data stays within chosen locations.

A McKinsey report highlights that while cloud adoption continues to accelerate, only 20% of surveyed organizations say they have achieved their expected value from cloud investments. In particular, data residency and sovereignty remain top concerns in highly regulated industries such as finance, healthcare, and manufacturing. Although public cloud providers offer compliance certifications, the shared responsibility model means enterprises still bear the burden of securing applications, data, and user access at the platform level.

Private cloud and on-premise solutions enable complete control over access, encryption, logging, and user roles across SAP layers. They also simplify compliance with region-specific regulations, such as GDPR, HIPAA, or industry-specific mandates.

Performance Tuning and Uptime: Key Advantages of Private Cloud and On-Premise SAP

High-performance SAP environments demand consistent throughput, fast query response, and guaranteed uptime. While public cloud services offer scalability, they often fall short in predictability and performance tuning. Shared environments can introduce latency, especially during peak usage or when relying on virtualized hardware.

Private cloud allows teams to tune infrastructure directly to SAP system demands. Custom VM sizing, memory prioritization for HANA, and proximity to local resources give SAP Basis administrators tighter control over runtime behaviors. This results in better system stability and faster processing.

A client improved SAP batch processing times by 30% after transitioning from a general public cloud setup to a dedicated private cloud instance. That kind of optimization becomes critical during cloud migration, especially when processing thousands of transactions or managing large datasets daily.

In addition, private cloud supports high availability without relying on external failover zones or shared platform constraints. For industries where even brief downtime results in financial loss or regulatory exposure, having full control over the infrastructure is not just valuable—it’s essential.

Supporting SAP Customization, Legacy Integration, and Complex Uptime Requirements

SAP deployments rarely operate in isolation. Custom integrations with manufacturing systems, logistics platforms, or legacy databases remain part of the architecture, especially for enterprises that have evolved their SAP investments over decades. Public cloud solutions may require extensive reconfiguration or added middleware to support these legacy touchpoints.

Private cloud simplifies integration by allowing tailored networking, consistent OS-level support, and application-layer flexibility. Organizations can maintain their unique configurations without conforming to rigid public cloud service limitations.

This also enables sustained support for older SAP versions that may not yet be migrated to S/4HANA. For example, clients running ECC with custom ABAP code often find private cloud offers more continuity during phased migrations. When combined with strong SLAs and dedicated SAP-certified teams, this model supports long-term resilience and operational control.

Tailored Deployment Models Designed Around Your SAP Environment

Modern SAP infrastructure planning is no longer about fitting everything into one box. It’s about selecting the model that best supports workload needs, regulatory goals, and business continuity. Whether enterprises require private cloud, hybrid setups, or specialized on-premise support, flexibility and strategic fit remain essential.

Providers with experience across SAP ECC, S/4HANA, and HANA help enterprises assess technical debt, migration timelines, and compliance exposure. A managed services partner with 24/7 support and dedicated SAP infrastructure ensures stable operations while internal teams stay focused on strategic priorities. Explore flexible deployment options that align with your SAP footprint and future growth. Work with a partner that values performance, compliance, and long-term results.

Discover more at Approyo or connect with our SAP architecture experts for a tailored recommendation.

Is On-Premise Outdated? Untangling the Private Cloud Advantage

The demand for agile and scalable IT solutions is skyrocketing. With 95% of enterprise workloads projected to shift to the cloud by 2025, the evolution of IT infrastructure is undeniable. As businesses navigate this digital era, the debate between private cloud innovation and the stagnation of on-premise solutions takes center stage.

In this article, we'll dissect the advantages of private cloud solutions and unravel the limitations of on-premise setups, shedding light on the critical considerations for businesses aiming to future-proof their IT infrastructure.

The Evolution of IT Infrastructure

The rapid evolution of IT infrastructure is reshaping the way businesses operate. This seismic shift underscores the pressing need for agile and scalable solutions that can adapt to the dynamic demands of the digital era. As organizations strive to embrace innovation and efficiency, the traditional paradigms of on-premise infrastructure are challenged by cloud-based environments' unparalleled flexibility and potential.

The cloud has emerged as a game-changer, offering businesses the ability to scale resources on demand, optimize performance, and drive innovation. Cloud solutions' agility and elasticity empower enterprises to swiftly respond to market fluctuations and customer demands, fostering a competitive edge in an increasingly dynamic business environment.

Challenges of On-Premise Solutions

The limitations of traditional on-premise solutions are increasingly conspicuous, posing significant challenges to meeting modern business demands. Consider a scenario where a company experiences sudden spikes in website traffic due to a successful marketing campaign. A traditional on-premise setup needs help to swiftly accommodate the surge in demand, leading to performance bottlenecks and potential downtime. This inability to seamlessly scale resources to match fluctuating workloads underscores the inherent inflexibility of on-premise infrastructure in addressing dynamic market conditions.

The rigidity of on-premise solutions further manifests in innovation and agility. Businesses reliant on traditional infrastructure often need help adopting and integrating emerging technologies. The intricate and time-consuming nature of on-premise upgrades and expansions hinders the rapid deployment of innovative solutions, impeding the organization's ability to stay ahead in a competitive landscape driven by technological advancements. Moreover, the capital-intensive nature of on-premise infrastructure necessitates substantial upfront investments, constraining financial resources that could otherwise be allocated to strategic initiatives and growth opportunities.

As the digital era propels businesses toward unprecedented dynamism and scalability, the constraints of on-premise solutions in adapting to these evolving demands become increasingly pronounced. The need for a more agile and responsive infrastructure is compelling organizations to reevaluate their technological foundations and explore alternative paradigms that can effectively address the challenges of the modern business landscape.

Security and Compliance Considerations

Private cloud solutions offer a paradigm shift, introducing advanced measures surpassing traditional on-premise environments' capabilities. Let's explore the critical considerations that underscore the superiority of private cloud solutions in safeguarding data and ensuring regulatory compliance:

Advanced Security Measures:

• Private cloud environments integrate robust security protocols and encryption mechanisms, fortifying data against unauthorized access and potential breaches.
• Implementing multi-layered security controls, intrusion detection systems, and proactive threat monitoring elevates the security posture of private cloud solutions, instilling confidence in the protection of sensitive business information.

Seamless Compliance Management:

• Private cloud solutions streamline compliance management through automated processes and comprehensive auditing capabilities, enabling businesses to adhere to industry-specific regulations and standards.
• The centralized governance and compliance frameworks inherent to private cloud environments facilitate the seamless management of regulatory requirements, mitigating the complexities associated with maintaining compliance in diverse and dynamic regulatory landscapes.

Future-proofing with Private Cloud Adoption

Private cloud adoption emerges as a pivotal strategy for future-proofing IT infrastructure and driving digital transformation in the evolving business landscape. Let's explore the compelling proposition of how businesses can fortify their operations and embrace the future-ready nature of private cloud adoption:

Agility and Innovation:

• Private cloud adoption empowers businesses to embrace agility and innovation, enabling rapid deployment of new services and applications to meet evolving market demands.
• Private cloud environments' inherent flexibility facilitates seamless integration with emerging technologies, positioning businesses at the forefront of innovation and digital transformation.

Scalability and Resilience:

• Private cloud adoption equips businesses with the scalability and resilience needed to navigate dynamic market conditions and easily accommodate fluctuating workloads.
• The ability to swiftly scale resources and maintain operational continuity in the face of unprecedented challenges underscores the resilience and future-ready nature of private cloud adoption.

Strategic Alignment:

• Private cloud adoption aligns businesses with a strategic IT framework that fosters adaptability, efficiency, and responsiveness, laying the foundation for sustained growth and competitive advantage.
• The strategic alignment afforded by private cloud adoption enables businesses to pivot swiftly in response to market dynamics, technological advancements, and evolving customer expectations, positioning them for long-term success in the digital landscape.

Embracing Private Cloud: The Strategic Imperative for Future-Ready Businesses

Private cloud adoption emerges as a transformative catalyst, offering unparalleled scalability, agility, security, and compliance management, positioning businesses to thrive in the dynamic and competitive digital landscape. The future belongs to those who can swiftly adapt, innovate, and scale, and private cloud adoption stands as a beacon of resilience and strategic alignment, empowering businesses to future-proof their operations and drive digital transformation. Embracing the future-ready nature of private cloud adoption is not merely a choice but a strategic imperative for companies seeking to thrive and lead in the digital era.

Visit Approyo for more information on SAP’s private cloud solutions. For insight on how SAP can transform your business processes, please message us at info@approyo.com or call us at 877-277-7696.

Private Cloud or On-Premise: Making the Right Choice

Navigating the complexities of business IT infrastructure is a significant feat. The decision between on-premise and private cloud solutions presents a critical dilemma for organizations. Understanding each option's distinct advantages and drawbacks is essential for making informed decisions that align with business objectives.

This article will delve into the intricacies of on-premise and private cloud solutions, exploring their performance, cost implications, and security considerations. By evaluating these key factors, businesses can gain valuable insights to guide their IT infrastructure choices for optimal operational efficiency and scalability.

Exploring On-Premise Solutions

On-premise solutions have long been the traditional choice for housing business IT infrastructure. This approach involves deploying and maintaining servers, storage, and networking equipment within the organization's physical premises. Let's dissect the critical aspects of on-premise solutions to understand their implications for businesses comprehensively.

Benefits of On-Premise Solutions

• Control: Organizations have complete control over their hardware, software, and data, allowing for tailored configurations to meet specific business needs.
• Data Sovereignty: By storing data on-site, companies can ensure compliance with data sovereignty regulations and maintain a higher level of control over sensitive information.
• Predictable Costs: Upfront capital expenditure provides a clear understanding of the total cost of ownership over the hardware lifecycle.

Drawbacks of On-Premise Solutions

• Capital Intensive: Procuring and maintaining hardware infrastructure requires substantial upfront investment and ongoing operational expenses.
• Scalability Challenges: Scaling up or down can be cumbersome and time-consuming, potentially leading to underutilization or overprovisioning of resources.
• Maintenance Responsibility: Organizations are responsible for hardware maintenance, software updates, and system monitoring and demand dedicated IT resources.

On-premise solutions offer unparalleled control and data sovereignty but have significant capital investment and maintenance responsibilities. As we explore the private cloud alternative, we must weigh these factors against the benefits of on-premise infrastructure.

Unveiling Private Cloud Capabilities

Private cloud solutions have emerged as a compelling alternative to traditional on-premise infrastructure, offering a blend of flexibility and control. Let's delve into the advantages and challenges of implementing private cloud solutions for business IT.

Advantages of Private Cloud Solutions

• Scalability: Private clouds enable organizations to scale resources dynamically, accommodating fluctuating workloads and business demands without physical hardware limitations.
• Resource Optimization: Private clouds optimize infrastructure utilization through virtualization and resource pooling, driving cost efficiencies and enhancing overall performance.
• Enhanced Security: Private clouds provide dedicated, isolated environments, offering enhanced security controls and compliance capabilities crucial for safeguarding sensitive data.

Challenges of Private Cloud Solutions

• Initial Investment: Implementing a private cloud infrastructure requires a significant initial investment in hardware, software, and skilled personnel for setup and management.
• Ongoing Maintenance: Organizations must allocate resources for ongoing maintenance, updates, and monitoring to ensure the seamless operation of the private cloud environment.
• Complexity: Managing a private cloud environment demands specialized expertise, and the complexity of integrating various components can pose operational challenges.

Private cloud solutions offer unparalleled scalability and resource optimization but require substantial initial investment and ongoing maintenance. As we delve deeper into the comparison between on-premise and private cloud solutions, it's essential to weigh these advantages and challenges against the organization's specific needs and objectives.

Photographer: Lila DK

Cost Analysis: On-Premise vs. Private Cloud

When evaluating IT infrastructure options, the financial implications play a pivotal role in decision-making. Let's conduct a comprehensive cost analysis to compare the economic considerations of on-premise and private cloud investments for businesses.

Cost Considerations for On-Premise Solutions

• Capital Expenditure: On-premise solutions typically involve significant upfront capital expenditure for procuring hardware, software licenses, and infrastructure setup.
• Operational Expenses: Organizations must account for ongoing operational expenses, including maintenance, power consumption, cooling, and physical space requirements for housing the infrastructure.
• Total Cost of Ownership (TCO): Calculating the TCO over the hardware lifecycle is essential to understanding the long-term financial commitment associated with on-premise solutions.

Cost Considerations for Private Cloud Solutions

• Initial Investment: Implementing a private cloud infrastructure requires a substantial initial investment in hardware, virtualization software, and skilled personnel for setup and configuration.
• Operational Efficiency: Private cloud solutions offer potential cost efficiencies through resource optimization, scalability, and reduced physical footprint, impacting ongoing operational expenses.
• Pay-as-You-Go Models: Some private cloud providers offer flexible pricing models, allowing businesses to pay for resources based on actual usage, potentially optimizing cost management.

Conducting a thorough cost analysis helps businesses gain insights into the financial implications of on-premise and private cloud investments, enabling informed decision-making aligned with their budgetary considerations and long-term financial objectives.

Performance Evaluation: Workloads and Infrastructure

Assessing the performance disparities between on-premise and private cloud workloads and infrastructure is crucial for understanding their operational impact on businesses.

Performance Evaluation for On-Premise Solutions

• Resource Utilization: On-premise infrastructure may face challenges in resource utilization, leading to potential underutilization of hardware and limited scalability.
• Latency and Accessibility: The physical location of on-premise infrastructure can impact latency and accessibility, especially for geographically dispersed teams or customers.
• Customization and Control: Organizations can customize hardware and software configurations to optimize performance based on specific workload requirements.

Performance Evaluation for Private Cloud Solutions

• Scalability and Elasticity: Private cloud solutions offer dynamic scalability, enabling businesses to adjust resources based on workload demands and enhancing overall performance.
• Geographical Redundancy: Private clouds can be designed with geographical redundancy, mitigating latency issues and ensuring high availability and accessibility for distributed users.
• Automation and Orchestration: Automation capabilities in private cloud environments streamline workload management, enhancing operational efficiency and performance optimization.

Evaluating the performance aspects of on-premise and private cloud solutions can help businesses gain insights into the operational efficiencies, scalability, and accessibility of their IT infrastructure, which are crucial for meeting the demands of modern digital business operations.

Security Considerations: On-Premise and Private Cloud

Security is a paramount concern for businesses when it comes to IT infrastructure. Let's examine the distinct security features and considerations for both on-premise and private cloud solutions.

Security Considerations for On-Premise Solutions

• Physical Security: On-premise infrastructure requires robust physical security measures to safeguard servers, networking equipment, and storage devices from unauthorized access.
• Access Control: Organizations have direct control over access permissions and security protocols, enabling them to implement tailored security measures based on specific requirements.
• Compliance Management: Organizations leveraging on-premise solutions are directly responsible for maintaining compliance with industry regulations and data protection standards.

Security Considerations for Private Cloud Solutions

• Isolation and Segmentation: Private cloud environments offer isolation and segmentation of resources, enhancing security by minimizing the risk of unauthorized access and data breaches.
• Managed Security Services: Some private cloud providers offer managed security services, including threat detection, encryption, and identity management, augmenting the environment's overall security posture.
• Regulatory Compliance: Private cloud solutions can assist organizations in meeting regulatory compliance requirements through built-in security features and adherence to industry standards.

Understanding the security features and considerations of on-premise and private cloud solutions allows businesses to make informed decisions aligned with their security requirements and compliance obligations, ensuring the protection of sensitive data and critical business operations.

Informed Decisions for Business IT Solutions

The decision between on-premise and private cloud solutions hinges on thoroughly evaluating various factors. While on-premise infrastructure offers control and data sovereignty, it comes with significant capital investment and maintenance responsibilities. On the other hand, private cloud solutions provide scalability, resource optimization, and enhanced security features, albeit requiring initial investment and specialized expertise. By conducting a comprehensive analysis of performance, cost implications, and security considerations, businesses can make informed decisions tailored to their specific needs and long-term objectives.

Ultimately, choosing on-premise and private cloud solutions should align with the organization's strategic IT goals, operational requirements, and regulatory compliance, ensuring a robust and agile IT infrastructure to support business growth and innovation.

Visit Approyo for more information on SAP’s private cloud solutions. For insight on how SAP can transform your business processes, please message us at info@approyo.com or call us at 877-277-7696.

Is On-Premise Outdated? The Compelling Case for Private Cloud

The debate between on-premise infrastructure and private cloud solutions has become increasingly pertinent. As businesses seek to optimize their IT infrastructure for enhanced scalability and agility, these two approaches' cost implications and operational advantages come into sharp focus. This article delves into the pivotal question of whether on-premise infrastructure needs to be updated in the face of the compelling case for private cloud adoption.

The Evolution of Infrastructure: Adapting to Private Cloud

The historical evolution of infrastructure management has witnessed a profound shift from traditional on-premise setups to the dynamic realm of private cloud solutions. The imperative has driven this transition for businesses to adapt to the ever-changing demands of modern digital environments. The scalability and agility inherent in private cloud solutions have emerged as pivotal factors in this evolution, enabling organizations to respond to market fluctuations and technological advancements swiftly.

Private Cloud Evolution:

• Adaptability: Private cloud solutions have evolved to offer unparalleled adaptability, allowing businesses to adjust their IT resources in response to changing demands swiftly.
• Scalability: The historical trajectory showcases a clear shift towards scalable infrastructure, with private cloud solutions providing the flexibility to expand or contract resources as needed.
• Agility: The evolution towards private cloud solutions underscores the increasing importance of agility in modern business environments, where rapid deployment and resource optimization are critical for staying competitive.

This historical shift reflects the strategic imperative for businesses to embrace private cloud solutions, as they offer the agility and scalability necessary to navigate the complexities of today's digital landscape. The evolution of infrastructure management underscores the need for adaptable, scalable, and agile solutions, positioning the private cloud as a compelling choice for businesses seeking to future-proof their IT operations.

Cost-effectiveness: The Financial Advantages of Private Cloud

The financial implications play a pivotal role in decision-making processes. When comparing the total cost of ownership (TCO) between on-premise and private cloud solutions, the cost-effectiveness of private cloud adoption becomes evident. Private cloud solutions offer specific examples and tangible cost-saving benefits that underscore their financial advantages over traditional on-premise infrastructure.

Cost Comparison:

• Initial Investment: While on-premise infrastructure often requires substantial upfront capital for hardware and software procurement, private cloud solutions typically operate on a pay-as-you-go model, minimizing initial investment requirements.
• Operational Costs: Private cloud solutions can significantly reduce operational costs associated with maintenance, upgrades, and system administration, as the cloud service provider often manages these responsibilities.
• Scalability Impact: The scalability of private cloud solutions allows businesses to align their IT expenses with actual usage, optimizing resource allocation and minimizing unnecessary expenditure.

Examining the TCO and cost-saving benefits helps businesses understand the financial advantages of private cloud solutions. This comparison highlights the potential for long-term cost-effectiveness and operational efficiency, making private cloud a compelling choice for companies aiming to optimize their IT expenditure while maximizing performance.

Scalability and Agility: Overcoming On-Premise Limitations

In infrastructure management, the limitations of on-premise infrastructure have become increasingly apparent in the face of evolving business demands. Real-world scenarios vividly illustrate how the scalability and agility of private cloud solutions outperform on-premise infrastructure, addressing critical operational limitations.

On-Premise Limitations:

• Resource Constraints: On-premise infrastructure often faces resource constraints, making it challenging to adapt swiftly to fluctuating workloads or sudden spikes in demand.
• Flexibility: The lack of inherent flexibility in on-premise setups can hinder businesses from rapidly deploying new applications or scaling resources in response to evolving requirements.
• Operational Delays: The lead time associated with provisioning and configuring on-premise infrastructure can result in operational delays, impacting the organization's ability to respond promptly to market dynamics.

Real-world scenarios vividly illustrate how the scalability and agility of private cloud solutions outperform on-premise infrastructure, addressing critical operational limitations. By overcoming these constraints, private cloud solutions empower businesses to achieve operational resilience and responsiveness, positioning them as a strategic choice for modern infrastructure management.

Performance Metrics: Private Cloud's Operational Advantages

The comparison between private cloud and on-premise infrastructure reveals distinct operational advantages that underscore the superiority of private cloud solutions. By delving into specific metrics, case studies, and operational benefits, businesses can comprehensively understand the performance differentials between these two approaches.

Operational Advantages:

• Scalability: Private cloud solutions exhibit superior scalability, enabling businesses to adjust resources to meet evolving demands seamlessly, optimizing performance and cost-efficiency.
• Reliability: Private cloud infrastructure's reliability, often backed by robust service level agreements (SLAs), ensures consistent performance and availability, mitigating the risk of downtime and operational disruptions.
• Security: Private cloud solutions offer advanced security measures, safeguarding sensitive data and applications, thereby enhancing operational resilience and regulatory compliance.

By examining specific performance metrics and real-world case studies, businesses can discern the operational advantages of private cloud solutions, positioning them as a strategic choice for achieving enhanced performance, reliability, and security in the digital landscape.

Embracing the Future: Strategic Imperative for Private Cloud Adoption

The trajectory of infrastructure management underscores the strategic imperative for businesses to embrace private cloud solutions. The compelling case for private cloud adoption, as evidenced by its scalability, agility, cost-effectiveness, and operational advantages, positions it as a pivotal enabler for long-term efficiency gains and operational resilience.

Businesses can confidently navigate the complexities of the digital landscape by leveraging the inherent strengths of private cloud solutions. This ensures their IT infrastructure is adaptable, scalable, and optimized for sustained performance and strategic growth.

Visit Approyo for more information on improving your IT infrastructure with SAP solutions.

Cloud Computing 101 – Types of Cloud

Cloud computing helps businesses to be more efficient and save on software and hardware that are important for different operations. The definition of cloud computing varies depending on your source but what is generally agreed is that it involves access of software or hardware that are in the “cloud” i.e. use of software or hardware remotely. If your company is using specialized applications where you did not have to set up server or buy hardware or software to run them, then you are probably using a cloud application.

Companies can use cloud computing to increase their IT functionality or capacity without having to add software, personnel, invest in additional training or set up new infrastructure.

Public Cloud
Public clouds are the most common way of deploying cloud computing. The cloud resources (like servers and storage) are owned and operated by a third-party cloud service provider and delivered over the Internet. Microsoft Azure or the Google Cloud are examples of a public cloud. With a public cloud, all hardware, software, and other supporting infrastructure is owned and managed by the cloud provider. In a public cloud, you share the same hardware, storage, and network devices with other organizations or cloud “tenants.” You access services and manage your account using a web browser. Public cloud deployments are frequently used to provide web-based email, online office applications, storage, and testing and development environments.

Private Cloud
A private cloud consists of computing resources used exclusively by one business or organization. The private cloud can be physically located at your organization’s on-site datacenter, or it can be hosted by a third-party service provider. But in a private cloud, the services and infrastructure are always maintained on a private network and the hardware and software are dedicated solely to your organization. In this way, a private cloud can make it easier for an organization to customize its resources to meet specific IT requirements. Private clouds are often used by government agencies, financial institutions, any other mid- to large-size organizations with business-critical operations seeking enhanced control over their environment.

Hybrid Cloud
Hybrid clouds combine on-premises infrastructure, or private clouds, with public clouds so organizations can reap the advantages of both. In a hybrid cloud, data and applications can move between private and public clouds for greater flexibility and more deployment options. For instance, you can use the public cloud for high-volume, lower-security needs such as web-based email, and the private cloud (or other on-premises infrastructure) for sensitive, business-critical operations like financial reporting. In a hybrid cloud, “cloud bursting” is also an option. This is when an application or resource runs in the private cloud until there is a spike in demand (such as seasonal event like online shopping or tax filing), at which point the organization can “burst through” to the public cloud to tap into additional computing resources.

Community Clouds
Community clouds are a recent variation on the private cloud model that provide a complete cloud solution for specific business communities. Businesses share infrastructure provided by the Cloud Service Provider for software and development tools that are designed to meet community needs. In addition, each business has its own private cloud space that is built to meet the security, privacy and compliance needs that are common in the community.

Community clouds are an attractive option for companies in the health, financial or legal spheres that are subject to strict regulatory compliance. They are also well-suited to managing joint projects that benefit from sharing community-specific software applications or development platforms.

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