Private Cloud: Data Center vs. Hosted Cloud

Private Cloud: Data Center vs. Hosted Cloud

hosted cloudIn this era of limited finances, business enterprises are focusing on a more operational approach to managing their hosting needs in a way that is cost-effective and scalable. Hosted Cloud is becoming one such trendsetter in the digitalized world. We’ve seen a transition from a pay-as-you-go pricing model to a streamlined process that includes disaster recovery. On the other hand, there are scenarios where purchasing infrastructure and using a private Data Center has its advantages: performance, control, long-term ROI, is just a few of them.  We are going to attempt to provide a high level blog to help address some of the differences between Hosted Cloud and Data Center, so that you can decide which direction may be best for your organization.

Understanding the Basic Difference

Some companies don’t fully understand the basic difference between Data Centers and Hosted Clouds.

On-premise Data Center offerings are in-house solutions that are deployed in the traditional manner where there are servers, installed operating systems and other hardware present at the Data Center itself. These on-premise solutions can be touched as these are tangible, physical assets. Although the clients own the physical infrastructure in the Data Center, the actual physical security and electricity costs may have to be managed by the Data Center Provider.

Coresite, a reliable colocation provider continues to expand direct access to Amazon Web Services with new deployments at its Santa Clara campus. CoreSite data centers take a seat at the intersection of cloud providers, telecommunications, and healthcare industry.

Equinix– The global carrier-neutral data centers and Internet exchange provider, frequently talks about how one can make the enterprise more agile and cloud-connected!

QTS, which has built some of the world’s robust and redundant data centers, continues to be driven by its core business model of delivering a unique integrated services platform.  In fact, its integration with Carpathia helped QTS to overcome the gap that existed between traditional data center needs and cloud providers.

Ten years ago, the $300B data center industry was considered the best option for all enterprises and any outsourcing option were rejected out-of-hand. However, Amazon Web Service (AWS) transformed how computers worked in the enterprise with the introduction of a cloud-based platform. In a recent survey, Gartner estimated that AWS customers deploy ten times more infrastructure on AWS than the combined adoption of the next 14 providers.

Hosted Cloud Solutions, on the other hand, are solutions offered by third-party cloud providers. Contracted for a set time interval, these solutions are built for the enterprises specifically. From providing physical security, computer, to support configuration, everything is provided by the host platform. The cloud providers are solely responsible for ongoing maintenance. Most often, these cloud vendors own infrastructure in multiple data centers in remote locations to secure the data during outages and other Data Center failures.

Datapipe – a secured compliant global leader in managed hybrid IT solutions for AWS, mentioned in one of his blogs regarding how hosted multi-cloud solutions can reduce IT expenses.

As per a study conducted by Rackspace– the open cloud hosting company, about 88 percent of cloud users point to cost savings and 56 percent of the respondents agreed that cloud computing has helped them boost profits.

Is Cloud Hosting Better in Terms of Data Security?

Security is a complex and expensive parameter. It has to be maintained 24×7. The most important thing to understand here is that Data Centers Solutions are accountable for their own security. Since these Data Centers are physically connected to local networks, only authorized equipment can store information in them. Therefore, security is one of the main comforts of a colocation Data Center.

hosted cloud data securityHosted Cloud-based platforms, on the other hand, are also secure as they have the ability to leverage the economies of scale in multiple off-site Data Centers where they house their own infrastructure, thus being able to contribute towards even higher levels of data security where applicable. Research has found that anything that can be accessed from within the enterprise has a higher chance of being attacked than penetrating an off-site location whether it’s with a Hosted Cloud Provider or with a Data Center Provider.

At a high level, the security breaching parameter is fairly equal for both the platforms.

Is Hosted Cloud a more Cost-effective Solution than On-premise Deployments?

Most buyers believe that Data Center Infrastructure deployments involve hefty investments, whereas cloud computing migrations and implementations have a cheaper startup cost. What many forget to consider is the total cost of ownership.  Even though this task of cost comparison can be overwhelming, these few listed points make the decision relatively simple.

  • The Installation Cost

The initial setting up of on-premise servers even without customization requires huge capital. Cloud vendors on the other hand just charge a setup fee.

  • The Maintenance Cost

Cloud servers require less maintenance than that of physical servers because they are owned by the cloud service providers. Many cloud vendors today can also provide a lower bandwidth cost because their bandwidth investment can be distributed among all of their customers. In a Data Center environment, make sure to list all of the equipment with a conservative cost of time to maintain every asset.

  • The Hardware Cost

In-house or Data Center systems require upgraded hardware to properly run the system.  Create a spreadsheet of the cost to upgrade and any licensing upgrades that will be coming in the future.  With cloud vendors, there is absolutely no need for server hardware since they host the software.

After this comparison, Enterprises only need to pay subscription fees for Cloud services, and in-house Data Centers not only are they more up-front capital friendly  to install but also easier to maintain.

Internap – the cloud hosting expert mentions that by deploying an appropriate cloud-hosting model becomes easy to lower the operating costs as well as increase business flexibility.

Is Cloud-hosting more Scalable than On-premise Data Centers?

Hosted cloud data center

The advantage of cloud computing is that it includes resource pooling, which involves multiple clients, customers or “tenants” with provisional and scalable services. They can afford to offer a scale of services you could not provision yourself at any cost.

Even though business enterprises enjoy the cost-savings opportunity and efficiency improvements through cloud-hosting, but they simultaneously trade-off face to face relationships and 24*7 data security check. Thus, it can be concluded that both data centers, as well as cloud computing, have their own set of benefits and organizations built on traditional IT paradigm may or may not adapt well in the digitalized world.

Breeze-Telecom – A San Francisco-based Technology Agency, offers technology and telecom services to help you choose the most ROI-beneficial solution.

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