Cloud Hosting – Private Cloud vs. Public Cloud

The trend toward Cloud Computing is growing rapidly to the stage where today, most businesses have already moved to the cloud or are in the final phase of operating systems on their own premises, and planning to move to the cloud in the future.  In effect, on-site networks are now obsolete.

At the moment 85% of all new business systems are being implemented on a hosted cloud basis.

Do you operate your own electricity generators or water supply?  Probably not.  With advancing technology the same factors govern the decision about where to host your network.  There is seldom a valid reason for on-site networks in the modern age.  On-site or on-premise networks are obsolete.  Net2 has more than 20 years experience implementing cloud hosted business systems to take the information technology worries off your hands.

Private cloud v. Public Cloud

There are some genuine concerns about the security of cloud technology, and for this reason there are a range of different cloud options to suit every purpose and budget.

It is important to realise that the issue is not black and white, i.e. whether or not to transition to the cloud. There is a spectrum of choices and options ranging from hosting on your own premises for some services, to private cloud hosting and public cloud hosting.  The real question is what type of cloud hosting would be most appropriate for your business?

If you are concerned about the risks of cloud hosting then you may be well suited to a private cloud hosting service. In most cases shortcomings of public cloud hosting can be overcome by following a implementing a private cloud hosting plan.

Net2 provides the full spectrum of cloud hosting options including data centre, hybrid systems, private cloud as well as hosting on public data centres including Microsoft Azure and Amazon Web Services.


Shared Spectrum v. Private Servers

Another complication of cloud hosting is the issue of shared spectrum versus private servers. When you are evaluating hosting arrangements it is important to understand the difference between Shared Spectrum versus Private Servers so you can make a fully informed decision.

There is a trend towards Shared Spectrum servers due to cost factors.  The sole advantage of the Shared Spectrum method is cost saving.  With a Shared Spectrum cloud hosting arrangement you are using a section of a network server that provides services for many organisations.

There are however some disadvantages that can apply to Shared Spectrum serving arrangements.  These disadvantages will vary depending on the type of shared spectrum service, however the following list indicates some of the downsides that may apply to the Shared Spectrum method.

  • Security limitations;
  • Limited ability to customise the system to your own requirements e.g. printers, devices, communication links;
  • Loss of control – from time to time the system will need to be upgraded, and it will be necessary for all of the organisation that are using that service to upgrade at the same time. This timing may not be convenient for you, however the terms of your shared spectrum cloud hosting service will mean that you have no control over when the upgrade takes place.

The trade-off between shared spectrum and private server cloud hosting is best discussed with your Net2 Client Adviser to make sure you are able to make a fully informed decision regarding the best hosting option for your business.

Data Sovereignty

Your business may be subject to contractual obligations to your customers regarding the legal jurisdiction of the organisations that have access to your data.  If this applies to your business, then it may be a bad idea to have your data hosted by an overseas company even though your data (in theory) resides within Australia.  The fact is that overseas companies will only respond to overseas jurisdiction.

The bottom line is that if you are required to sign contracts with your customers under Australian Law, then it is highly likely that the same obligations extend to your IT service providers e.g. IT companies.

You may wish to get specialist advice to interpret your contractual obligations.  It is far preferable to seek clarification of your Data Sovereignty obligations in advance, than to overlook the issue and find out that your business is in breach of contract to your major customers.

This issue is highly relevant to organisations that are government funded or have government clients.