In the last ten years, the cloud revolution caught on like wildfire in the tech industry. Most businesses were looking to adopt cloud technology in one way or another. Tech giants such as Amazon Web Services (AWS), and Microsoft Azure led the way in offering public cloud services.
But, many businesses are beginning to migrate from public cloud to managed enterprise hosting due to security and cost concerns. Not all businesses need to be on the public cloud, and the surrounding hype can be somewhat misleading. There’s even a term for it now, called cloud repatriation.
It is becoming clear that the public cloud is not the right solution for all businesses. In this article, I will explore why more and more businesses are moving away from the public cloud. I will also share the advantages of managed hosting over the public cloud.
- Why Are Businesses Moving Away From Public Cloud?
- Examples Of Notable Companies Moving Away From Public Cloud
- What Are The Differences Between Public Cloud And Managed Hosting?
- What Are The Advantages Of Managed Hosting vs. Public Cloud?
- Conclusion: The Way Ahead
Why Are Businesses Moving Away From Public Cloud?
While the public cloud is an incredible tool, the ‘cloud dream’ isn’t for everyone. Public cloud providers typically charge businesses based on their usage. This can be great in the short term, but quickly becomes expensive as usage increases.
Many businesses found that the public cloud didn’t deliver promised cost savings. The public cloud is more cost-efficient when catering to occasional demand spikes. But, it can become expensive while handling huge, year-round workloads. Especially when you factor in management fees and non-fixed billing models.
Unpredictable monthly bills can be frustrating, especially when the amount fluctuates wildly due to changes in website traffic or activity. This not only creates anxiety but also makes it hard to plan for financial stability and can result in buyer’s remorse.
Also, not all businesses need the same level of scalability and flexibility provided by public cloud providers. Businesses with regulatory compliance issues require more privacy and control.
Additionally, public cloud providers have faced outages recently. This has caused entire infrastructures to go down.
Due to all the reasons mentioned bove, Managed enterprise hosting has recently found takers again.
Examples Of Notable Companies Moving Away From Public Cloud
Several companies have switched from public cloud to managed hosting in recent years.
One of the primary reasons why public cloud services may not be the right solution for every business is the cost. Although the upfront cost of public cloud services may be low, the ongoing costs of storage can add up quickly
The examples below highlight the type of cost savings companies experienced after moving away from Public cloud.
- Dropbox saved $75 million by moving away from cloud hosting. Dropbox (despite ironically being founded on AWS) cited issues with data sovereignty, and regulatory compliance as reasons for moving to their own servers. By building its own data centers, Dropbox was able to reduce costs and gain greater control over its data.
- Ahrefs, a Singapore-based firm, claims to have saved $400 million by not migrating to the cloud. The company decided to not opt for the public cloud due to its data and security concerns and eventual migration cost.
- Basecamp is one of the world’s biggest project management tools. Basecamp’s founder, David Heinemeier Hansson, explains here why the company preferred to run its own data center. He adds that they did not appreciate the public cloud’s one-size-fits-all model.
What Are The Differences Between Public Cloud And Managed Hosting?
What is public cloud, exactly? According to Cloudflare
“A public cloud is a cloud service offered to multiple customers by a cloud provider. The term “public cloud” is used to differentiate between the original cloud model of services accessed over the Internet and the private cloud model. Public clouds include SaaS, PaaS, and IaaS services.”
While public cloud infrastructure is hosted in shared data centers, managed hosting is hosted in private data centers. You essentially move to a private cloud with managed enterprise hosting.
With managed hosting, the user doesn’t have to share server resources or bandwidth. This allows for greater customizability, control, and scalability than in public cloud services.
In a nutshell, the main difference between public cloud and managed hosting is the level of control and customization available to the customer. Managed hosting solutions offer greater control over costs and more predictable pricing models.
Note: When deciding how to host a server, the above are generally the two options that come to mind, but it’s important to consider a third option: hosting your own servers.
While creating your own storage space does require a significant investment of time and capital, it’s worth noting that some teams choose to do this as a viable choice. One downside is that it calls for becoming an expert yourself and investing thousands of dollars in infrastructure.
What Are The Advantages Of Managed Hosting vs. Public Cloud?
Managed hosting is not the silver bullet for every business. But it does offer solutions where public cloud providers fall short.
Below are the 3 main advantages of managed hosting vs. public cloud:
#1. Long term costs
One of the primary advantages of managed hosting over the public cloud is the cost savings. Managed hosting may cost more initially, but it becomes more cost-effective long-term. Managed hosting typically has a fixed monthly cost. This is more predictable than the variable costs associated with the public cloud. While public cloud services may be cheaper in the shortterm, the ongoing costs of storage, transfer, and computing can quickly add up. The usage costs of these public cloud servers over the long term are also being questioned by many, as these are big tech, publicly traded companies that sometimes prioritize stockholder profits before their customers.
#2. Security concerns
Besides cost concerns, businesses are also worried about security and control. When data is stored in the public cloud, there is a risk that third-party vendors may have access to sensitive customer information.
Rather than risking a data breach or security incident, companies are now turning to managed hosting solutions that offer greater control and more options to customize their solutions.
Managed hosting providers typically offer better security options than public cloud providers, allowing customers to have peace of mind knowing that their data is secure and protected.
#3. More control and customization
Finally, managed hosting providers offer more control and customization options than public cloud services. This solution can be invaluable for businesses that need a tailor-made hosting plan.
Conclusion: The Way Ahead
As your business grows, so does its need for more secure servers. There are many benefits to managed hosting. Your business will enjoy greater control over costs, security, and infrastructure.
But, managed hosting may not be the right fit for every business. Some businesses benefit greatly from the scalability that public cloud services offer.
It is important to weigh the pros and cons of both options to figure out which one best suits your needs. Managers need to consider their business’s specific needs, budget, and long-term scalability goals.
If managed hosting is the right solution for your business, be sure to check out Namehero. Our secure, scalable infrastructure and dedicated 24/7 support helps businesses across the world.
Contact us to learn more about our enterprise hosting plan and find out how your business can benefit from our expert services.
Nirali has over a decade of experience working in marketing with startups in a variety of sectors, including e-commerce, ed-tech, and SaaS. She has a keen understanding of the unique challenges and opportunities facing early-stage companies and a track record of developing effective content strategies that drive growth and engagement.