Differences between Private Cloud and Public Cloud


Cloud storage is a computing service paradigm that allows a user to access data stored in a remote location at any point in time on any device through the internet. As we see more and more companies shifting towards the cloud, they also have their own set of requirements and needs they use the cloud for. Depending on these needs, the cloud is divided typically into Private Cloud and Public Cloud.

To understand the differences between private and public clouds, we first need to understand what they are and what they offer.

What is Public Cloud?

Essentially, public cloud means the data is hosted on a public data center, typically provided by the cloud service companies. This means all the users share a single database but function independently, much as different people may withdraw money from the same bank but only from their account.

Public Clouds can be better understood as your data living in a hostel, where you periodically pay for it, and all the other services are provided to you by your Cloud Provider.

Examples − AWS, Google Cloud, Azure, IBM, etc

Advantages of Public Cloud

  • Drastically decreases the upfront cost
  • Easier to set up
  • Easier to scale

What is Private Cloud?

Private Cloud storage means the data is hosted in a data center on your own infrastructure or on someone else’s infrastructure but reserved specifically for you. A single enterprise maintains a private Cloud, and data is shared over a private network.

Private Cloud can be better understood as your data living in a rented/bought house. You pay your Cloud Provider only for the house, and any additional cost that you have is yours to bear.

Examples − Red Hat, Oracle, VM Ware, Microsoft, etc

Advantages of Private Cloud

  • Increased Reliability
  • Security is usually very high
  • Having Dedicated servers ensures high performance.

Differences between Private Cloud and Public Cloud

The following table highlights the major differences between the private cloud and public cloud −

Basis of Difference Private Cloud Public Cloud
Cost Private Clouds tend to cost more than Public Clouds for reserving/constructing the data center. Public Clouds tend to cost less than Private Clouds, as you use pre-made data centers.
Security Connection is possible only via a private network, which makes them extremely secure Connection is open on the internet, making them more vulnerable and less secure.
Performance Very high performance because of private networks Performance is moderate
Reliability Reliability is very high Low to Moderate Reliability
Architecture Hosted by the company on their infrastructure Hosted by the Provider
Scalability Limited Scalability, you may need to upgrade/expand the hardware. Practically Unlimited Scalability since the cloud provider has near infinite resources.
Servers Dedicated Servers Shared Servers
Control Your enterprise owns the infrastructure, hence very high control. Very little control, as the computers are shared between enterprises.


To summarize, Private Clouds are where your data is stored in a data center sectioned specifically for you, which may or may not be on your infrastructure, and Public Clouds are where your data is stored over public data centers which are on the infrastructure of your Cloud Service Provider. Hybrid Cloud is the technology that combines both to achieve the best of both worlds.