{"id":1495,"date":"2010-10-04T00:00:00","date_gmt":"2010-10-04T00:00:00","guid":{"rendered":"http:\/\/otava.test\/private-cloud-outsource\/"},"modified":"2025-11-07T07:40:45","modified_gmt":"2025-11-07T07:40:45","slug":"private-cloud-outsource","status":"publish","type":"post","link":"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/","title":{"rendered":"Private Cloud: Outsource or In-source?"},"content":{"rendered":"<p>In my last blog post, I wrote about some of the trade offs between a <a title=\"public cloud or private cloud\" href=\"..\/public-cloud-or-private-cloud\/\" target=\"_self\" rel=\"noopener noreferrer\">public cloud or private cloud<\/a>.<\/p>\n<p>Once a decision is made to go with a private cloud computing solution, the next decision is whether to outsource with <a title=\"private cloud hosting\" href=\"https:\/\/otavawebsite.wpengine.com\/solutions\/cloud\/\" target=\"_blank\" rel=\"noopener noreferrer\">private cloud hosting<\/a>, or to develop and manage the private cloud internally.<\/p>\n<p>So what are the trade-offs between private cloud hosting and building an internal private cloud?\u00a0 Here\u2019s a couple of though starters:<\/p>\n<p>The private cloud hosting decision is much like any managed server hosting decision.\u00a0 The benefits of private cloud hosting include:<\/p>\n<ul>\n<li><strong>No Capital Expenditures Required \u2013<\/strong> The hosting provider makes all of the capital and staffing investments and the private cloud is delivered at a fixed monthly price.<\/li>\n<\/ul>\n<ul>\n<li><strong>Fully Managed \u2013<\/strong> No need to hire the staff to manage the server hardware, storage, offsite backup, virtual servers or data center infrastructure.\u00a0 A new server can be spun up with a simple phone call.<\/li>\n<\/ul>\n<ul>\n<li><strong>Compliance \u2013<\/strong> If the hosting provider has <a title=\"SAS-70 Hosting\" href=\"https:\/\/www.onlinetech.com\/managed_hosting\/sas_70\/\" target=\"_blank\" rel=\"noopener noreferrer\">SAS-70<\/a> compliance, or has built PCI or HIPAA compliant solutions, you can piggy-back on their compliance work rather than start fresh with your own audits.<\/li>\n<\/ul>\n<ul>\n<li><strong>Offsite Disaster Recovery \u2013<\/strong> Some private cloud hosting providers can provide offsite warm disaster recovery for a fraction of the cost of building it internally \u2013 since they can share the disaster recovery hardware across multiple clients.<\/li>\n<\/ul>\n<p>Internal private clouds give up the advantages of a <a title=\"Cap-ex Free Cloud\" href=\"https:\/\/otavawebsite.wpengine.com\/blog\/business-value-of-cloud-computing-where-does-initial-capital-expenditure-fit\/\">cap-ex free<\/a>, staff free solution, but provide a higher level of flexibility in several key areas:<\/p>\n<ul>\n<li><strong>Hardware selection \u2013<\/strong> Private cloud hosting providers tend to standardize on the hardware platforms that they deliver their private cloud solution on.\u00a0 As a hosting provider, I would argue that the hardware platform used for the cloud doesn\u2019t really matter. However, if you want a higher degree of control over the hardware components, an internal (or <a title=\"colocation hosting\" href=\"https:\/\/www.onlinetech.com\/colocation\/\" target=\"_blank\" rel=\"noopener noreferrer\">hosted colocation<\/a>) private cloud provides a higher degree of hardware flexibility.<\/li>\n<\/ul>\n<ul>\n<li><strong>Capital Expense \u2013<\/strong> In some industries (such as the insurance market), access to capital is not an issue and upfront purchases are preferred over monthly fees.<\/li>\n<\/ul>\n<ul>\n<li><strong>Self Managed \u2013<\/strong> If you or your technical team grooves on managing the day-to-day infrastructure, or need fine-grain control over all of the computing resources, then outsourcing private cloud computing may be difficult to achieve within the organization\u2019s culture.<\/li>\n<\/ul>\n<p>While private clouds are generally preferred by mid-size and large enterprises because they meet the security and compliance requirements of these larger organizations and their customers, different organizations will look differently on whether to build their private cloud internally, or to host their private cloud with a trusted managed data center partner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In my last blog post, I wrote about some of the trade offs between a public cloud or private cloud. Once a decision is made to go with a private cloud computing solution, the next decision is whether to outsource with private cloud hosting, or to develop and manage the private cloud internally. So what are the trade-offs between private cloud hosting and building an internal private cloud?\u00a0 Here\u2019s a couple of though starters: The private cloud hosting decision is much like any managed server hosting decision.\u00a0 The benefits of private cloud hosting include: No Capital Expenditures Required \u2013 The hosting provider makes all of the capital and staffing investments and the private cloud is delivered at a fixed monthly price. Fully Managed \u2013 No need to hire the staff to manage the server hardware, storage, offsite backup, virtual servers or data center infrastructure.\u00a0 A new server can be spun up with a simple phone call. Compliance \u2013 If the hosting provider has SAS-70 compliance, or has built PCI or HIPAA compliant solutions, you can piggy-back on their compliance work rather than start fresh with your own audits. Offsite Disaster Recovery \u2013 Some private cloud hosting providers can provide offsite&#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45],"tags":[],"other_category":[],"class_list":["post-1495","post","type-post","status-publish","format-standard","hentry","category-cloud-computing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Private Cloud: Outsource or In-source? | OTAVA<\/title>\n<meta name=\"description\" content=\"Explore outsourcing your private cloud and how it enables scalability, cost efficiency, and managed infrastructure expertise.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Private Cloud: Outsource or In-source?\" \/>\n<meta property=\"og:description\" content=\"Explore outsourcing your private cloud and how it enables scalability, cost efficiency, and managed infrastructure expertise.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/\" \/>\n<meta property=\"og:site_name\" content=\"OTAVA\" \/>\n<meta property=\"article:published_time\" content=\"2010-10-04T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-07T07:40:45+00:00\" \/>\n<meta name=\"author\" content=\"Irma Brillantes\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Irma Brillantes\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/\"},\"author\":{\"name\":\"Irma Brillantes\",\"@id\":\"https:\/\/www.otava.com\/#\/schema\/person\/35774075f8f4fcdd4eae80cb72034263\"},\"headline\":\"Private Cloud: Outsource or In-source?\",\"datePublished\":\"2010-10-04T00:00:00+00:00\",\"dateModified\":\"2025-11-07T07:40:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/\"},\"wordCount\":434,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.otava.com\/#organization\"},\"articleSection\":[\"Cloud Computing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/\",\"url\":\"https:\/\/www.otava.com\/blog\/private-cloud-outsource\/\",\"name\":\"Private Cloud: Outsource or In-source? 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