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What is the cost difference of Private Cloud vs. Public Cloud? (Webinar Attendee Question)

This question was asked by an attendee during the Proformative webinar "What's Stopping CFOs from Moving Accounting To The Cloud" held on February 20, 2013.  Please join the discussion and add your insights below.

A video of the webinar can be viewed here


Topic Expert
Donald Koscheka
Title: Principal
Company: Bluecloud Communications
(Principal, Bluecloud Communications) |

Private cloud generally means that you OWN the servers and software which are then housed and managed by an external datacenter. Because you need to purchase or lease separate hardware and software, private cloud is generally more expensive. You would consider this option if you are planning to host your own cloud services.

Public cloud provide services independent of how the servers and software are deployed (the technical trick that is being played here is that the vendor is using virtual machines to host their services). Because the vendor can control server configurations, etc; they can achieve economies of scale that are difficult to achieve in private clouds - which often translates to lower prices for the services.
Public cloud is a good option when you are buying just the service and don't care how it's deployed or managed in the datacenter (accounting services are a good example of this).

Greg Pierce
Title: VP, Tribridge Concerto Cloud Services
Company: Tribridge
(VP, Tribridge Concerto Cloud Services, Tribridge) |

It’s difficult to say exactly what the difference would be as it would depend upon the solution. For software implementations, if you look at it over time, the least expensive option is public cloud, followed by private cloud, with on-premise being the most expensive. So, you should really determine if you need specialized security, customizations, or have complex integrations. If that’s the case, private cloud makes sense for you.

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