Cloud computing has changed how organizations use IT resources like data storage, software development tools, and applications. Resources to host and manage servers are supplied by providers over the internet, offering greater flexibility and capacity than traditional on-prem infrastructure. 

There are three different cloud environments: public, private, and hybrid clouds. Each model has strengths and limitations, which makes it tricky to figure out which best suits your needs. 

In this guide, we’ll walk through the advantages, disadvantages, and ideal use cases for each cloud deployment model to help you make an informed decision that balances security, scalability, and costs.

What’s a public cloud?

A cloud service provider (CSP) owns a public cloud, making it accessible to anyone via the internet. Public clouds are multi-tenant, meaning users have access to a pool of shared resources like servers, storage, and applications through a self-service interface. Users' data stays separate even though the central processing unit (CPU) runs simultaneously on a shared server.

Advantages of public clouds

• Affordability: Users only pay for resources and services with pay-per-use pricing models or subscriptions. Since users “share” the cloud’s resources, CSPs can offer cloud services to many customers at a lower cost.
• Scalability: Public clouds automatically add computing capacity in response to data or traffic spikes.
• Quick deployment: With a public cloud, you can initiate new servers and resources without hardware or physical infrastructure setups.
• Accessibility: The cloud is accessible from anywhere with an internet connection.
• Automatic software updates: Software doesn’t require manual updates; the CSP executes them.

Disadvantages of public clouds

• Limited control: Users have restricted authority over cloud infrastructure and resources, limiting their ability to customize the cloud.
• Data security concerns: Public clouds are susceptible to breaches and cyberattacks. There’s always a risk of exposure or compromise since data is stored on a third-party server.
• Potential for hidden or rising costs: Ingress (data that moves into the cloud) is free, but egress (moving data out of the cloud) costs are often hidden. CSPs also adjust pricing when they add new features and services, making the cloud more expensive.

What’s a private cloud?

Organizations can own a private cloud environment and operate the necessary IT resources on a private network. Only authorized users have access to the cloud. 

Private clouds are typically deployed in one of two ways: 

1. The cloud’s infrastructure is hosted in an on-prem data center.
2. The cloud is hosted on a third-party vendor’s server, where the organization is a “single tenant.”

Private clouds allow more control and autonomy than public clouds, making them a popular choice for industries managing sensitive data with regulatory compliance. Financial institutions use them to host transactions, while government agencies use them to store confidential information. 

Advantages of private clouds

• Customization: Adjust hardware, software, and infrastructure to meet new requirements. 
• Compliance: Select the location and jurisdiction of data to meet industry standards and laws. Compliance measures can also be tailored on private clouds.
• Control: Internal IT team members maintain cloud computing resources and have the ability to reconfigure them. 

Disadvantages of private clouds

• Higher cost: Dedicated hardware, software, and infrastructure are expensive to purchase and maintain. For those with limited budgets, private clouds are less accessible.
• Limited scalability: Organizations often build private clouds to meet current needs during the design phase, making future scaling difficult.
• Complex management and maintenance: Configuring and operating private clouds requires specialized expertise. Upgrades and maintenance take time and bandwidth that some organizations can’t afford. 

What’s a hybrid cloud?

Hybrid clouds are a blend of public and private cloud environments, connected to enable data and application sharing. Unlike a multi-cloud architecture, which uses multiple public providers, a hybrid cloud uses automation to move workloads across both the private and public cloud. This flexibility balances scalability with data security and compliance.

Some examples of hybrid architecture use cases include:

• Cloud bursting: Cloud bursting occurs when resources from public clouds step in to handle excess workloads during demand spikes that exceed private cloud capacity.
• Disaster recovery: Organizations store data in a private cloud and replicate it to a public cloud for backup.
• Dynamic scaling: Third-party public clouds allow organizations to scale resources, while private clouds maintain security and control over important workloads. 

Advantages of hybrid clouds

• Flexibility: Cloud bursting uses public clouds to handle traffic spikes and peak demands.
• Workload optimization: Workloads are allocated to optimize operations. The public cloud is used for acute, short-term needs, while sensitive data is protected on the private cloud.
• Regulatory balance: Sensitive data is kept on-prem or in a hosted private cloud, but it can be scaled with public cloud resources.
• Fast-tracked application development: Teams can adopt agile and DevOps methodologies by running non-sensitive workloads on the public cloud and storing sensitive data securely on the private cloud. 

Disadvantages of hybrid clouds

• Complexity: Hybrid cloud environments are complicated to set up and manage and require considerable technical expertise. 
• Potential integration challenges: Integrating public and private cloud infrastructure may pose problems. Different applications and services often have compatibility issues.
• Security: Hybrid clouds are vulnerable to data breaches and cyber attacks when identity management, security policies, or encryption standards aren’t consistently enforced across environments.
• Compliance risks: It’s difficult to manage data compliance with laws and regulations across different cloud environments.

When to use public, private, or hybrid clouds

The differences between public, private, and hybrid clouds make each environment well-suited for specific scenarios.

Public clouds

Public clouds are ideal for organizations with variable or rapidly changing workload requirements. They can run critical applications and services like development and testing environments. They also serve as a backup for peak demand periods.

Private clouds

Private clouds are best suited to organizations with high demands and corresponding resources and budgets. Regulated industries like government and healthcare value private clouds’ secure data storage capabilities, while organizations that require strong control and security value their performance. 

Hybrid clouds

Ideal for enterprise-level organizations, hybrid clouds offer the benefits of both public and private clouds. A hybrid cloud is capable of distributing large workloads while safeguarding data and offering autonomy. They also prevent lock-in with one CSP, avoiding technical inconsistencies, legal problems, and additional costs. 

Best practices when adopting public, private, and hybrid cloud models

So which environment is best for your organization? Here are some helpful guidelines for strategic implementation:

• Assess organizational needs before choosing a model: Public clouds allow for predictable, fast-scaling workloads, while private clouds offer intensive data security and control. Consider a hybrid cloud if both are essential.
• Define transparent governance and security policies: Regulated industries benefit from private or hybrid clouds for rapid compliance adaptation.
• Use automation and monitoring tools: Some public and hybrid clouds offer AI automation to improve resource allocation, threat detection, and performance enhancement. 
• Optimize cost and performance: Public clouds’ pay-as-you-go structure is ideal for variable workloads and rapid scaling. Private clouds are expensive to implement and maintain but are often economical in the long term. Hybrid clouds offer a balance by allocating workloads to the most suitable environment.
• Plan for data integration and migration: Public, private, and hybrid clouds all pose different integration and migration challenges. Specialized platforms can ease this transition. 

How Fivetran streamlines data integration across cloud environments

Deciding between a private, public, or hybrid cloud model depends on your business goals and infrastructure needs. But moving and integrating data across environments is rarely straightforward.

‍Fivetran can help. As a fully managed data movement platform, Fivetran simplifies cloud migrations and unifies data across cloud architectures with zero maintenance.

Fivetran’s automated ELT pipelines connect data from public, private, and hybrid environments, ensuring consistent, secure, and high-performance movement across systems. With hybrid deployment options, you can keep data within your preferred infrastructure — without sacrificing speed, scalability, or compliance.

Start for free or book a demo to see how Fivetran simplifies cloud data integration.

FAQs

Should I choose a private cloud or a public cloud?

If your organization needs greater control of data security, architecture, and infrastructure, a private cloud is the best option. But if predictable workloads and rapid scaling are what’s needed, a public cloud is a better choice.

What’s the difference between hybrid clouds and on-prem solutions?

The key difference lies in flexibility and scalability. On-premises solutions are fully managed within a company’s own data center, offering maximum control but limited scalability and high maintenance overhead.

Hybrid clouds, by contrast, combine on-premises infrastructure with public or private cloud services. This allows organizations to keep sensitive workloads on-prem while taking advantage of cloud scalability, cost-efficiency, and modern services for other workloads. Hybrid models also support phased migrations and help avoid vendor lock-in.

What are the 4 main cloud services?

The four primary cloud service models are:

• Software as a Service (SaaS): Cloud-hosted applications accessed via a web browser or API (e.g., Salesforce, Google Workspace).
• Platform as a Service (PaaS): A development environment with tools and frameworks to build, test, and deploy applications (e.g., Heroku, Google App Engine).
• Infrastructure as a Service (IaaS): Virtualized computing resources like servers, storage, and networking (e.g., AWS EC2, Azure VMs).
• Serverless computing: A model where cloud providers manage infrastructure automatically, allowing developers to run code in response to events (e.g., AWS Lambda, Azure Functions).

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