When we talk about cloud computing, it’s common to make jokes and analogies with the clouds in our sky — instead of carrying water, they carry data. We can use transportation analogies to talk about the different cloud service models you can choose from. In our business, we transport data, but the logic works much the same way as transporting people.
To start, you should know there are three main types of cloud, and each is designed for a specific purpose. Choosing the wrong cloud model means either overpaying for capacity you don’t use, or locking sensitive data behind infrastructure that can’t scale.
Migrating to the cloud is a challenge, especially in Latin America. In this article, we’ll walk through public cloud vs private cloud vs hybrid cloud so you can find the best cloud deployment for your project.
The Types and Key Differences Between Cloud Computing Models
Based on the deployment model, there are three types of cloud: public cloud, private cloud, and hybrid cloud. Learn about the key differences that make each cloud computing model distinct, and which one fits your business operations.
| Aspect | Public Cloud | Private Cloud | Hybrid Cloud |
|---|
| Infrastructure ownership | Owned and managed by a third-party provider (e.g., AWS, Azure, GCP) | Owned/managed by a single organization, either on-premises or on dedicated third-party hardware | Combination of private and public infrastructure |
| Resource sharing | Shared, multi-tenant environment (isolated accounts on shared physical infrastructure) | Dedicated, exclusive resources for one organization | Mix — some workloads shared, some dedicated |
| Cost | Lower, pay-as-you-go pricing | Higher upfront investment (hardware, software, staff) | Can share some infrastructure costs while retaining dedicated capacity elsewhere |
| Control & customization | Limited to settings the provider allows | Full control over infrastructure and security policy | Full control over the private portion; less over the public portion |
| Best suited for | On-demand access, scalability, general workloads without owning hardware | Regulated/sensitive data, strict compliance needs | Organizations wanting to keep sensitive data private while gaining public cloud flexibility |
| Scalability | Fast and reliable, spread across multiple data centers | Can become outdated without ongoing maintenance | Can extend into the cloud when on-premises growth is limited |
| Business continuity | Reliable due to distributed infrastructure | Depends on the organization’s own setup | Supports failover between environments for disaster recovery |
| Analogy used in article | Public transportation (bus/train) | Owning your own car | Uber (temporary exclusive use) |
| Typical users | Individuals, businesses needing flexible shared resources (e.g., Gmail, Google Drive) | Businesses with regulated data | Government organizations, businesses balancing privacy and flexibility |
Each model changes who manages infrastructure, how you pay for computing services, and how much control you have over IT resources. Some models offer on-demand access to shared capacity; others hand you dedicated, isolated infrastructure you manage yourself.
1) Public Cloud
In Summary:
- Infrastructure owned and managed by a third-party provider (AWS, Azure, GCP)
- Multiple organizations share physical hardware, but accounts/data stay isolated
- Accessed over the internet — no hardware ownership required
- Lower cost, pay-as-you-go pricing
- Fast to scale, spread across multiple data centers
- Avoids vendor lock-in since capacity can be resized or migrated easily
- Examples: Gmail, Outlook, Google Drive
As the name suggests, public cloud is a shared system where a cloud service provider owns the physical infrastructure, and any internet user can access it over the public internet.
Inside a public cloud provider’s infrastructure, the data storage of all users sits on the same physical infrastructure, but each account is kept in an isolated environment. Multiple organizations share the available computing resources, while operating systems and data stay separated between accounts.
Access to public cloud services is usually through the internet, so any person or company can reach shared resources with nothing more than an internet connection. Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform are widely known public cloud providers that work this way. Closer to everyday use, Gmail and Outlook are public cloud services too — your inbox lives on shared servers, but only you can open it.
Google Drive is another public cloud service, used for data storage of documents, spreadsheets, and other files online. Public cloud computing resources like these are attractive because multiple users get on-demand access without owning any physical hardware, since the underlying infrastructure is entirely managed by the provider.
Public cloud doesn’t mean unprotected. Even though you share computing resources with other public cloud users, the space you use to store your customer’s data is secured, and no other user has access to it. Organizations can also customize privacy settings within the parameters the cloud provider manages.
Public cloud infrastructure is typically spread across multiple data centers, which is part of why public cloud environments tend to be reliable and fast to scale. Public cloud deployments also avoid the vendor lock-in risk some teams worry about with a single dedicated cloud vendor, since capacity can often be resized or migrated on demand.
Think of public cloud as public transportation, where you pay a lower price and share the vehicle with other users — a bus or train, instead of a private car or taxi. You can see EdgeUno’s public cloud services for an example of a complete cloud platform with transparent, pay-as-you-go pricing and no contracts.
2) Private Cloud
In Summary:
- Dedicated infrastructure reserved exclusively for one organization
- Can be on-premises or hosted by a third party on non-shared hardware
- Full control over customization, security, and compliance
- Higher upfront cost — hardware, software, and skilled staff needed
- Requires ongoing maintenance or it can become outdated
- Best fit for sensitive data or strict regulatory requirements
In contrast to public cloud, private cloud is an exclusive service, usually at a higher cost. With a private cloud setup, you no longer share computing resources with other users — dedicated infrastructure and dedicated resources are reserved exclusively for you.
A single organization operates a private cloud, which allows for more flexible cloud deployment with corporate-grade computing services and enhanced security. Private cloud environments give you complete control over customization, which matters most when you’re handling sensitive data or strict compliance requirements.
Private cloud infrastructure can be built on-premises in your own data center or hosted by a third-party service provider on dedicated physical hardware that isn’t shared with anyone else. Either way, you — not a public cloud provider — manage infrastructure, from operating systems to security policy.
That control comes at a cost. Private cloud deployments require a bigger upfront investment in physical infrastructure, software, and skilled engineering staff, and private cloud infrastructure can become outdated over time without ongoing maintenance from your own team or a third-party provider.
Private cloud services suit businesses and private cloud users that need an isolated environment for regulated data, rather than the shared, multi-tenant setting of public cloud. In a private cloud setting, some teams manage everything in-house; others lean on third-party providers to run the hardware while keeping the environment dedicated.
Continuing the transportation analogy, private cloud is like owning your car — every seat and every component is there for you alone, and nobody else touches it.
3) Hybrid Cloud
In Summary
- Combines private and public cloud to balance control and flexibility
- Sensitive data can stay private while other workloads use public cloud
- Helps cut costs by sharing some infrastructure where it makes sense
- Useful when on-premises growth hits a limit — can extend into the cloud
- Supports business continuity/disaster recovery through failover between environments
- Requires more security planning since data moves between environments
- Common among government organizations balancing privacy and public access
Organizations use hybrid cloud to describe a service that mixes the capabilities of private and public cloud, building a stronger solution by combining the best of both.
In other words, with a hybrid cloud environment, you can keep certain services in a private cloud while letting a public cloud handle other data, or interact more easily with customers and other organizations. This way, you get the benefits of both cloud models and can share some infrastructure costs with other clients where it makes sense, adding up to real cost savings.
So when it’s impossible to grow locally within your own data center, you can extend into the cloud instead. Many organizations choose a hybrid cloud approach specifically to keep sensitive data private while gaining public cloud flexibility elsewhere.
Different hybrid cloud models exist depending on how much you split between environments. Hybrid cloud security needs more planning than a single model alone, since data and traffic move between a private cloud and a public cloud provider’s network.
Done well, a hybrid cloud strategy also helps maintain business continuity: if one environment has an outage, workloads can often fail over to the other, supporting disaster recovery goals. Government organizations are common examples of hybrid cloud users — they tend to use private cloud to store sensitive data, and public cloud to share information with the public.
In our analogy, hybrid cloud is the equivalent of an Uber — you don’t own the car, but for the length of the ride, it’s yours alone.
If your hybrid cloud strategy depends on fast, reliable links between environments, EdgeUno’s Cloud Connect is built for exactly that kind of connectivity.
Frequently Asked Questions
What is the difference between public, private, and hybrid cloud?
Public cloud uses infrastructure shared across multiple organizations and managed by a provider like AWS, Azure, or Google Cloud. Private cloud uses dedicated infrastructure reserved for a single organization, either on-premises or hosted by a third party. Hybrid cloud combines both, keeping some data or workloads private while using public cloud for the rest.
Which cloud model is the most cost-effective?
Public cloud is generally the most cost-effective, since it runs on pay-as-you-go pricing without requiring hardware ownership. Private cloud costs more due to dedicated infrastructure and staffing. Hybrid cloud can lower costs by sharing some infrastructure publicly while keeping only what’s necessary private.
Is public cloud secure enough for business use?
Yes, most of the time. Even though public cloud shares physical infrastructure across users, each organization’s data is kept in an isolated environment that other users cannot access, with privacy settings that can be customized within the provider’s framework.
When should a business use private cloud instead of public cloud?
Businesses with sensitive data or strict compliance requirements should use private cloud, since it offers dedicated infrastructure and full control over security policy — something public cloud’s shared, multi-tenant model doesn’t provide.
Why do organizations choose hybrid cloud?
Organizations choose hybrid cloud to keep sensitive data private while gaining the flexibility, scalability, and cost savings of public cloud for other workloads, often improving disaster recovery through failover between environments.
Choosing the Right Cloud Deployment for Your Business
Every company is different and has different business operations and needs. Before implementing any cloud solution, you need to understand your organization’s current status and what you expect from the services you’re offering — to your users, or internally within your company.
By 2024, Gartner projected that 75% of the world’s population would have its personal data covered under modern privacy regulations. That’s one more reason to weigh where sensitive data lives before choosing between a public cloud provider and a private cloud model.
The key benefits of each cloud model come down to a tradeoff: public cloud tends to win on cost efficiency and speed, while private cloud wins on control and compliance. Hybrid cloud exists precisely to let you capture cost savings on one side without giving up dedicated infrastructure on the other.
EdgeUno offers cloud by design as a service. Through guidance and advice, we help you develop the best cloud deployment for each project, based on your unique needs and business goals. Whether that means public cloud services, a private cloud setup, or a hybrid cloud approach, our team works alongside you to architect the right-sized solution — with more than 50 Tier III and Tier IV data centers across Latin America, the USA, and Europe, and delivery times under 15ms.
If you want to know more about the types of cloud and the most cost-effective solution for your project, talk to an expert — we’ll be happy to help. Or get started with EdgeUno Cloud directly from our self-service portal.
