White PaperAI & Cloud Strategy

Public vs Private Cloud

“AI's growth is driving tech companies toward public cloud services, offering the scalability and flexibility private clouds can't match.”

After shunning away their private physical CD distribution service in 2007, Netflix realized the potential in public online streaming. This transformation from a private service into a public network culminated in a reported revenue of $9.4 billion within the first quarter of 2024, with over 270 million paid subscribers for the company. Similarly, tech companies that originally adopted a private cloud service, which is where all their IT infrastructure internally bought and managed, are now realizing the true potential of public cloud, a more external approach to IT resources.

The rapid advancement of AI will provoke tech companies to shift their focus towards using public cloud data center services due to the massive amounts of data training, volume, and consumption AI requires. Unlike private cloud services that require huge capex investments, public cloud data centers are a better option as they allow tech companies to quickly adapt to the volatile AI market.

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What's Inside

Key takeaways from the white paper.

Public cloud market valued at $773.30B; expected CAGR ~18.5% over the next 5 years.

Private cloud market: $92.64B with a forecasted CAGR of 15.8% for the next decade.

The "big three" (AWS, Azure, Google Cloud) hold 67% of IaaS/PaaS — ~$200B in 2023 revenue.

Organizations use 3.4 public clouds and 3.9 private clouds on average (Flexera) — cloud cost optimization is a top priority for 52% of professionals.

32% of enterprises currently transfer their private data infrastructure into a fully-managed AI cloudspace.

Public cloud: spread-out opex, simpler API/GUI deployment, broad expertise. Private cloud: in-house management, upfront capex, data security, higher autonomy.

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