Software as a Service (SaaS) and public clouds are becoming more popular with organizations looking to streamline operating expenses and improve their financial outlook. This makes it all the more surprising to see a company still using its private data centers, especially with so many low-cost alternatives available.

Owning private infrastructure for data storage can be likened to owning a fleet of private jets. On one hand, one can see such ownership as a way of maintaining data security while keeping company spending in check. On the other hand, it can prove an expensive folly for a typical organization, especially given the tremendous cost of maintaining and operating a private jet fleet.

Why Some Organizations Justify the Private Data Center

The reality of owning and operating private data centers resonates most with mid-sized companies, whose limited resources dictate a more economical form of maintaining private data. After all, a company with just a few dozen employees may not be able to handle the expense of devoting several of its personnel to server operation and maintenance. In addition, those assigned to such tasks are also burdened with maintaining their skillsets in an environment where such skills are not the company’s primary focus.

Larger enterprises, on the other hand, may have already sunk millions into their data center equipment. Compare this particular situation to an organization that’s already purchased a fleet of private jets and the infrastructure needed to maintain them, including hangars, spare parts, and maintenance crews. Despite an objective financial analysis of owning and maintaining private data centers, enterprises are likely to justify the added expense for the following reasons:

• Some enterprises may attempt to justify the need for a private data center on the grounds of security, arguing that private data is safer when contained in private data centers. While this may protect against certain physical breaches, the internet offers a virtual vector of attack that targets both private data centers and public clouds. A public cloud may be better suited towards addressing these and other security concerns.
• Others may argue the difficulty of securing HIPPA and PCI compliance with a public cloud, but those and other standards have evolved to alleviate those concerns.
• Some enterprises prefer the perceived flexibility of the private data center, in the same manner that a private jet offers flexibility in destinations unmatched by any public air carrier. Today’s public cloud offerings include a multitude of products, giving organizations a generous degree of customization that could easily supplant private data center functions.

Cost is another pain point for enterprises, with many arguing that private data centers actually help control costs when compared to the monthly expenses generated by public clouds. However, public cloud usage also reduces costs through economies of scale and the ability to review and adjust usage as needed.

Instead of maintaining that figurative fleet of private jets, it’s more advantageous for large enterprises to embrace public cloud providers — the figurative commercial air carriers — as a more efficient alternative. To learn more about how the public cloud can benefit your organization, contact us at eXemplify today.