Cloud adoption keeps growing, and cloud computing services now underpin everything from data analytics to disaster recovery. The trend was strong before 2020, and the Covid-19 pandemic accelerated cloud migration worldwide. The reasons are clear: the cloud shortens time to market, reduces operational costs, gives on-demand access to computing power, scales easily, and enables faster, data-driven decisions with real-time insights. No wonder cloud migration is a priority on many Boards’ agendas.

Moving to the cloud opens up new possibilities, but it also raises a practical question: which setup is right for your business? Public cloud, private cloud, hybrid cloud, and multicloud offer different approaches to balancing cost, scalability, security, and control.

Together with Łukasz Marcinek, our Head of Cloud Engineering, we break down the key differences, benefits, and trade-offs of each approach. Explore the comparison to find the setup that aligns with your business priorities.

What is a cloud deployment model?

A cloud deployment model is the cloud computing model that defines who has access to the infrastructure and who uses it: whether it is for your exclusive use, shared with others, or a combination of both.

Do not confuse it with a cloud service model (IaaS, PaaS, SaaS). A service model describes how much control and responsibility you have over the infrastructure and your data, while a deployment model describes where and for whom the infrastructure runs.

Below, each model is broken down into pros and cons across cost, ease of setup, security, control, and scalability.

Public cloud

What is a public cloud and how does it work?

A public cloud is hosted by a third-party cloud service provider that manages the entire cloud infrastructure, including physical infrastructure, underlying hardware, network infrastructure, and software. Public cloud services such as Microsoft Azure and Google Cloud share computing resources among many customers. You can configure parts of it, but not to the extent possible in a private cloud.

The name can be misleading. “Public” means the service is available to the public, not that your data is. Under the shared responsibility model, providers supply security and compliance tools, access management and data protection features, and it is up to you whether and how you use them. For example, you can set up a virtual private network (VPN) in public cloud environments, but only if you configure it.

You can configure and manage the network, load balancing, and routers to some extent, but you cannot choose which physical machine is allocated to you. That is the provider’s decision.

Public cloud benefits

  • No local hardware to buy or maintain. A high SLA means the provider keeps the hardware and data center up to date, which lowers your operational costs.
  • Cost efficiency with pay-as-you-go pricing. Pay only for the public cloud resources you use, for example switching them off at night to save money.
  • Almost unlimited scalability. Scaling multiple virtual machines and computing power is often a matter of a few clicks. Some safeguards exist to prevent accidental scaling, but limits are very high.
  • Regulatory compliance. It is a common misconception that public cloud is less secure than private cloud. Providers offer tools that help you meet standards such as PCI DSS or HIPAA/HITECH.
  • Global data placement. Need your data stored in Australia? If the provider offers a region there, you can do it. Multiple regions also support disaster recovery.
  • Software licences often included. For many managed services, such as a database in Microsoft Azure, the licence is part of the usage price.

Public cloud disadvantages

  • Some security or legal requirements cannot be met. Certain government policies, industry standards, or legal rules may prohibit using a public cloud for sensitive data or sensitive workloads.

Private cloud

What is private cloud and how does it work?

In a private cloud, the infrastructure is dedicated exclusively to your business. Servers are typically provided by third-party providers, such as a data centre, and private cloud environments can also run on-premises. Private cloud services of this kind give you dedicated infrastructure and greater control over data security. “Private” refers less to who owns the hardware and more to exclusivity of use.

Private cloud benefits

  • Customisation and control. You can tailor the whole private cloud, from physical hardware to network infrastructure, to your specific business solution.
  • Support for very specific requirements. More flexible configuration options let you meet strict security, regulatory compliance, or legal demands that a public cloud may not cover.

Private cloud disadvantages

  • Longer, more demanding setup. Often you receive only a virtual machine and network access, and you configure and manage the rest yourself. The SLA can be lower than in a public cloud, and there are fewer pre-built services.
  • You need IT specialists. Configuration and management require expert knowledge, which can raise start-up and running costs.
  • Limited scalability. Hardware extension is restricted, so scaling on demand is not always possible.
  • Fixed costs. You usually pay a contractual price regardless of actual usage.
  • Extra software licence costs. In most cases, you must buy licences for the software applications you run.

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Hybrid cloud

What is a hybrid cloud and how does it work?

A hybrid cloud combines private and public cloud, or a cloud with on-premise infrastructure. The environments are connected so data and applications can flow between them, ideally through a unified management platform with centralised management. A well-designed hybrid cloud architecture (or enterprise hybrid cloud architecture) lets a hybrid cloud environment work as one hybrid cloud system.

Hybrid cloud benefits

  • Cost flexibility. When you do not need high scalability, keep resources in a private cloud or on-premise infrastructure. When demand grows, add capacity in the public cloud.
  • Smoother cloud migration. You can move in small steps: part of the workload goes to the cloud while the rest stays on-premise, integrated through a VPN or dedicated network. This protects business continuity without a hard cut-over and supports a gradual hybrid cloud strategy and hybrid cloud adoption.

Hybrid cloud disadvantages

  • Tricky setup. Linking environments reliably, for example, through a VPN, requires expert skills.
  • Combined risks. You inherit the risks of both private and public cloud, or of on-premise storage.

Multicloud

What is multicloud and how does it work?

Multicloud means using more than one cloud from multiple vendors. Multicloud setups mix various cloud services from different cloud providers, such as Microsoft Azure and Google Cloud. It is worth considering when one provider offers a service another lacks, or offers it at a significantly lower price.

Multicloud benefits

  • Cost optimisation. Combine services from providers with the best prices to cut cloud costs.
  • Competitive advantage. Solution A may fit one provider best, while solution B fits another, so you can choose the best tool for each job, for example, a specialised platform for data analytics.

Multicloud disadvantages

  • Complex cross-cloud connections. Implementing and managing multicloud is a task for an experienced team that knows each platform in depth.

Is a private cloud more secure than a public cloud?

The rules are the same in both: you must verify that the right security procedures and standards are in place. Good cloud security depends on data protection, access management, and regulatory compliance in both models, especially for sensitive data.

Public cloud providers are very large organisations with deep security expertise and access to advanced security solutions, so their standards are often among the highest. For this reason, a public cloud can be more secure than a private cloud or on-premise infrastructure. However, because of the shared responsibility model, providers give you the tools, and you must know how to use them correctly.

Private cloud, public cloud, hybrid cloud, or multicloud: which one should you choose?

No model is universally better. It depends on your business needs. A sound cloud strategy weighs cost-effectiveness, security and compliance, and the computing resources you need.

When to use a private cloud?

Choose a private cloud if you need a tailor-made solution with maximum customisation and control, if you must meet business, governance, legal or security requirements that a public cloud does not cover, or if you run certain legacy applications.

When to use a public cloud?

Choose a public cloud if you want fast setup and near-limitless scaling. Despite common misconceptions, it offers strong security options and tools for compliance with local and international regulations.

When to use a hybrid cloud?

Choose a hybrid cloud model if you want a smooth, low-risk migration, or if you want the customisation of a private cloud together with the scalability of a public one.

When to use multicloud?

Choose multicloud if other providers offer services you need at much lower prices, or if combining platforms makes your product or service more competitive.

Ready for cloud adoption?

Cloud migration is a complex process, and expert help can save you from costly detours, whether you move to public and private clouds or to a hybrid cloud infrastructure. Our experienced cloud engineers can advise on the best migration method and handle the entire process, including code and documentation review and high-level architecture design.

Explore our cloud services or contact our cloud team to discuss your project.

FAQ

The four main models are public cloud, private cloud, hybrid cloud, and multicloud. They differ in who can use the infrastructure, how much control you have, and how costs and scalability work.

A public cloud is run by a third-party provider and shared by many customers, with pay-as-you-go pricing and very high scalability. A private cloud is dedicated to a single organization, offering more customization and control, but with higher setup effort, fixed costs, and more limited scaling.

It depends on your usage. Public cloud is often the most cost-efficient for variable workloads because you pay only for what you use. Private cloud has fixed costs, which can make sense for stable, predictable workloads. Hybrid and multicloud can reduce costs further if managed well, but they add complexity.

Often yes. Major providers offer tools for compliance with standards such as PCI DSS and HIPAA/HITECH. Under the shared responsibility model, though, you must configure them correctly. Some legal or industry requirements may still rule out public cloud.

Hybrid cloud combines different environment types, such as private or on-premise with public cloud. Multicloud uses services from several cloud providers. They can also be combined.

A hybrid cloud is a good fit when you are migrating gradually, when part of your data must stay on-premise or in a private cloud, or when you need public cloud scalability for peak demand.

To take advantage of better prices or unique services from different providers, to match each workload to the best platform, and to gain a competitive edge.

A deployment model (public, private, hybrid, multicloud) describes who uses the infrastructure and where it runs. A service model (IaaS, PaaS, SaaS) describes how much control and responsibility you have over the infrastructure and data.

Public cloud is the easiest to start with. Private, hybrid, and multicloud setups are more complex and typically require experienced cloud engineers.

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Małgorzata Kruszyńska

Małgorzata Kruszynska

Business Researcher

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