What is a private cloud and when is it the right choice?

Whether you are a small business, a medium-sized business, or even a large enterprise business, you are likely managing a large amount of data and applications to sustain your daily business processes. As more companies join the online marketplace, applications and software solutions continue to develop and improve, but managing these solutions can be challenging without having a place to store all of this information. This is where a public or private cloud service comes in.


One of the most popular cloud-based tools for small to medium-sized businesses is a private cloud ERP system. An ERP system allows for easy customization and access to your information when and wherever needed to ensure your day-to-day operations run smoothly and efficiently.


Not all businesses will want the same type of cloud service, and finding the right solution for your business can be challenging. Here we will explore private and public clouds and detail the benefits private clouds bring to your business.


What Is a Private Cloud?

According to the National Institute of Standards and Technology (NIST), a private cloud, sometimes called an internal or corporate cloud, is a cloud of resources only for use by a single organization. This means that only the individuals in that organization can access the resources stored in the private cloud. A private cloud allows a business to share resources with its employees and select individuals without making them available to the entire internet.


Private vs. Public Clouds

So, what exactly is the difference between private and public clouds? Where a private cloud offers your organization cloud computing resources that only your business can access, a third party owns and manages a public cloud. This means that a public cloud is not owned by the business using it, as yours would be; instead, the third-party company provider owns it. You access the tools and resources of the public cloud over the internet, typically on a web browser.


It is important to note that public clouds are typically the most common type of cloud resource. They can bring the benefits of having access to a cloud without breaking the bank or worrying about server maintenance. But not all businesses may be comfortable using a public cloud, which means someone could access their information externally. Don’t worry, while public clouds do have some benefits, private clouds have many advantages for SMBs (small and medium-sized businesses) as well as large companies alike.


Advantages of a Private Cloud

As mentioned before, private clouds can bring many benefits to your business regarding managing your data and infrastructures online. Here are five of the most significant advantages of using a private rather than a public cloud for your business.



You can customize private clouds to offer precisely what you need. With a private cloud, you can tailor your cloud to offer precisely what you need. You can include specific software solutions, infrastructure configuration, storage solutions, and networking features your business requires to function smoothly. This is crucial for companies because, realistically, there is no “one size fits all” solution for your cloud and infrastructure. Each business operates differently, and each team will have its own preferences based on size, industry, and objectives. With private cloud ERP systems, this customization means that you have complete control over your data. Since the cloud is private, you can pick the exact features and functionalities you need to solve your specific business problems. As your company changes, you can easily change your ERP system to suit your new situation.



When you use a private cloud, you control your business’s data, infrastructure, and applications. This means that you can easily manage and change anything that needs to be altered, and you can more effectively handle larger workloads by adjusting how you allocate computing resources. With a private cloud, you can also ensure that you are making good use of your resources and not have to worry about sharing these resources with other businesses because they are private.


Privacy and Security

It seems logical that a private cloud would be more secure than a public cloud. This increased security is one of the most crucial advantages of private clouds because it allows you to better protect your and your customer’s information from security threats. Unfortunately, as technology advances, so do hacking and cybersecurity threats.


To safeguard your business and your customers from potential security breaches, you need to be confident in your security systems. When you use a public cloud, you depend on the security systems the third-party provider offers with the solution. If you use a private cloud, you can control these areas and ensure that you have high-quality security and a detailed disaster-recovery plan should something happen. Private cloud ERP systems process your business’s most sensitive and confidential data. You cannot afford to risk this data getting stolen or damaged. In a private cloud, your ERP system and data is processed entirely on private machines. This is far more secure than a public cloud, where your data is processed on systems that are shared with many users.



While public clouds may appear less expensive than private clouds at first glance, over time, they may end up costing you more than you expect. Typically, public clouds charge you an amount based on your usage of cloud services. While this may not be too much in the beginning, as your business grows and your cloud grows with you, these costs can soar.


A private cloud can give you exactly what you need without paying for services and tools you do not want. This can reduce your overall cost of ownership for your cloud solutions. However, keep in mind that private clouds can also be quite expensive, so you may need to compare and implement automation tools that can help streamline your business processes and help reduce your private cloud costs.



No matter what industry your business is in or what size your business is, you need to comply with national and international laws and regulations. A private cloud can help you do this because you can customize it to account for any of these regulations and provide improved security for your data. This is crucial when processing and storing sensitive data, such as customer information.

Businesses that use public clouds rely on a third-party provider to maintain security and keep their data safe. With a private cloud, you can control this data and your security and ensure your customers’ data is safe. One of the best private cloud tools for improving compliance is an ERP system. A platform like this makes it easy to track critical compliance data and can help reduce errors. Furthermore, an ERP solution also makes it easier for you to be audit-ready by regularly performing audits of your organization.


Why Choose Acumatica as a Cloud ERP for SMBs?

Enterprise resource planning (ERP) is one of the most crucial pieces of cloud business software because it helps you to manage your day-to-day business processes efficiently. However, finding the right ERP for small to medium-sized businesses can be challenging, as they create many solutions with large businesses in mind. But, a cloud ERP, like Acumatica, can help you dramatically improve your business processes by focusing on your individual needs and putting the power to choose the deployment method (public or private cloud) that makes sense for your business.


If you want to learn more about Acumatica and find out which type of cloud ERP is best for your business, visit this page.

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