![]() Most will move between 30% to 70% to the public cloud and no more. Very few, if any, will move entirely to the public cloud. Most organizations, with multi-decade old IT departments and hundreds or even thousands of home grown applications, are gradually migrating at least some of their infrastructure to public clouds. Some large technology companies operate exclusively in the private cloud because they have the IT sophistication required to do so more efficiently and for less than cost than they would be able to achieve through a hybrid or exclusively public cloud arrangement. However, as they grow larger, some will choose to operate their own private cloud. Some new organizations are "cloud native," that is, they operate exclusively in the public cloud. ![]() With the rise of public cloud computing, led by Amazon's AWS segment, many organizations began transitioning at least some of their storage, computing, and networking infrastructure to a public cloud for the flexibility of more workload capacity (when needed), the simplification of their own IT departments, and cost savings. With these simple examples you can begin to understand the benefits and tradeoffs that go into the cloud infrastructure decisions of businesses and other organizations.Īll organizations originally just had their own private cloud, that is, their own on-premise infrastructure. Your data is stored at a Dropbox run data center somewhere. A greatly simplified example of this is that if you use Dropbox ( DBX) to back up your files instead of an external hard drive, then you are using a public cloud. Public cloud is where the technology company is providing the storage, networking, operating system, and other services through the internet. A greatly simplified example of this is that if you have an external hard drive at home to backup files, then this is essentially your own private cloud. Private cloud or "on-premise" is where the customer has its own data center. But just as a quick refresher, hybrid cloud computing is the combination of private and public cloud computing. You will want to read that letter first, if you haven't already, to get a general background of the cloud computing landscape. In my last Premium Letter I explained why I like Microsoft ( MSFT), namely its strength in hybrid cloud computing which is making it a tough competitor for Amazon ( AMZN) in the cloud infrastructure and platform services market.
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