The Simple Reason Companies are Abandoning the Public Cloud

Many companies, including Apple and Dropbox are leaving public cloud hosting (like AWS) in favor of private cloud hosting and bare-metal/dedicated servers. The kicker? There’s one simple reason for the exodus from public cloud hosting:

The performance of public cloud hosting setups in terms of network speed, disk speed, and CPU performance are quantifiably worse than other hosting options. At the same time, the cost of public cloud hosting has simply gotten out of hand, with comparable hosting options being as much as 4X cheaper than cloud hosting.

Stories of Companies Leaving the Cloud Highlight Increased Performance and Decreased Cost.
Tiingo made the switch from AWS to a bare-metal/dedicated server setup recently, and ran a few benchmarks when they switched. They found that their network was significantly faster, more stable, and 15-44% cheaper. Additionally, they found that their CPU was 30-40% more powerful and 15% cheaper. Lastly, they discovered their hard disk was better performing and was 92% cheaper.

Tiingo had been experiencing a bottleneck by using AWS and by switching was able to offer a better user experience at a lower cost.

Should You Reconsider Your Cloud Hosting Setup?
There are a couple of scenarios in which you’d want to move away from a public cloud and begin to run on a private cloud, bare metal, or dedicated server setup.

One instance in which you’d want to switch would be if the number and size of your workloads grow. Many cite the scalability of the public cloud as a reason to go with that setup, but when it comes time to scale up, the pricing often becomes prohibitively expensive. Costs begin to rapidly exceed that of a dedicated server or private cloud as you utilize more resources and features. This is why we are seeing companies like Apple and Dropbox drop AWS. I expect that we’ll see many more companies ranging from SMBs to enterprise come to the same conclusion and switch away from the cloud in the coming years.

Other Reasons to Leave Cloud Hosting:
Even though the primary reason to leave cloud hosting setups is price and performance, there are many other reasons you may wish to leave.

For one, you may encounter compliance issues with public cloud hosting, this is why many companies within the financial, medical, and legal sectors are sticking with private clouds, bare metal servers, and dedicated servers.

Another reason is the requirement of proprietary knowledge that is often necessary in public cloud setups.

Lastly, it’s important to consider the lack of control when choosing AWS vs Dedicated Servers (or similar hosting options). With a dedicated server, you’re given full root control, the ability to customize hardware, and more. These benefits result in a more tailored experience and shouldn’t be taken lightly.

Written by Peter Perez

Peter Perez is the Founder and CEO of PCe Solutions, a Full Service IT Support & Consulting Company based out of Alberta and serving both Calgary, Edmonton and their surrounding areas. Contact us toll free at 1-(855)-423-3183 or send us an email at [email protected] for more information.

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