While there is a momentum in the market regarding public cloud ERP platform, many enterprises still prefer to have a private cloud platform. This is specifically true for mid-market and large organizations that have tremendous data storage requirements and have a lot of sensitive business information.
Customers choosing private cloud do so to ensure that their data is not shared on open public platforms. It provides them more information security, privacy and control over their data. Each customer has its own database and a highly scalable infrastructure. Like public cloud customers, by choosing a private cloud platform, customers can offload technical support, maintenance, monitoring, servers, operating systems, and databases.
Public and private cloud vendors
Despite the luring benefits offered by private cloud platforms, there are certain challenges faced by private cloud vendors. Before opting for a private cloud, customers should carefully analyze their requirements and alignment with provider’s goals.
Public cloud vendors make significant amount of investment in software and infrastructure to keep pace with the demands of the market. Third party software vendors are able to gain benefits by making applications that functional and can be integrated with other applications on public clouds. The investment of public cloud vendors is obviously funded by the renters of their platforms making it easier for them to develop a robust platform and upgrade its capability frequently.
The security concerns are also mitigated as owing to a large customer stake on the platform, public cloud providers will never take security concerns lightly. Third party software developers build applications that can be easily operated on their cloud and its capability can be enhanced from time to time.
On the contrary, there are private cloud vendors who have a command in the private cloud market and afford to provide robust platform for its selected customers. Security arrangements are up-to-mark to match the public cloud. But the same does not hold true for other small private cloud providers. They can provide a private cloud but providing robust environment and security becomes a challenge for them. They have to work out their cost depending upon the customers they have. Small private cloud providers fail to provide robust software development tools for third party vendors.
Advantages of private cloud vendors
Enterprises seeking private cloud providers have an advantage as well. Private cloud providers can offer great degree of customization to suit their customers’ needs. If an enterprise is choosing to adopt private cloud, it should conduct a comprehensive analysis of their business including their future requirements. The analysis will allow them to determine what kind of private cloud vendor they need.
The vendor should be able to take care of all their business requirements. The enterprise should seek information about R&D investment of the vendor. Whether the vendor has plans to develop platform, enhance ERP functionality or develop its own set of applications, the enterprise must be fully aware of the long-term consequences of associating with the private cloud vendor.
Nonetheless, the enterprise seeking private cloud enjoys the advantage of having an individual database with complete control over data. They can independently determine the application, platform and infrastructure set up. The software is under control as users can decide when to upgrade it. Furthermore, there are dedicated servers and guaranteed resources without comprising the speed and operation of the system.