Public or hybrid cloud? How smaller businesses can compete with giants

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Authors

Miha Kralj

Global Senior Partner, Hybrid Cloud Services

IBM

Small and mid-sized businesses (SMBs) often struggle to decide between using public cloud or hybrid cloud. It’s like choosing between a very nice rental car (public cloud) or a custom-built vehicle where you’re on the hook for all the maintenance (hybrid cloud). Both have their perks, but for cost-effective, scalable and secure computing, public cloud is often the answer.

Comparing a fish tank to an ocean

Public and hybrid cloud architectures serve different purposes. Think of public cloud as an ocean with a boundless amount of water. Then someone thought, Hey, we could put a some of that water on our desk, like a little aquarium, and we’ll have our own private ocean! And that's how we went from public cloud to private cloud. But private cloud has limitations—you can’t fit a whale in it, for example. That’s how we got to hybrid cloud.

Hybrid cloud bridges the two, allowing businesses to mix and match between public and private environments. It connects everything together and doesn’t care what’s in the tank vs what’s in the ocean—it easily swims between the two. But for SMBs? Managing a hybrid setup can be like maintaining both a fish tank and an ocean—you’re still on the hook for maintenance, security and interoperability.

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Public cloud: The biggest computer ever built

Public cloud is not just a magic data center in the sky. The way it’s designed and interconnected with all the other cloud components follows the same principles as supercomputers—a tightly woven network of independent compute and storage nodes, with a developer or somebody very smart using them in as parallel way as possible. And if you used all the nodes of all the cloud providers across all the regions on the planet—nobody does that, it’s just an example—you would have the largest, most unbeatable supercomputer ever built.

Why does that matter? In the past, businesses had to make decisions based on computing constraints. Complex calculations, like predicting how many pairs of pants your store needs to restock, were done in batch processes that took hours, sometimes days. Today, thanks to cloud computing, those same calculations happen in real-time. The moment a customer swipes their card for a t-shirt, the production system adjusts manufacturing in seconds. The cloud removes the old limits of how long will this take? and replaces it with what else can we do?

SMBs can thrive in the public cloud

If you’re a small business looking to scale, public cloud is the way to go:

Cost effectiveness: Back in the day, if you wanted to scale your business, you had to invest in expensive on-premises servers—hardware that might sit idle most of the year but still drained your budget. The public cloud turns those upfront capital expenditures into operational expenses. You only pay for what you use, making it much friendlier to cash flow.

Scalability without the headache: Spiky, irregular workloads are perfect for public cloud. Think about retail businesses gearing up for Black Friday. They probably need 1000 times more capacity for compute and storage than, say, for the middle of March. If you run your own data center, how do you design for that? You’d need to invest in infrastructure capable of handling peak demand, even if most of the year it’s collecting dust. The public cloud allows you to scale up for busy periods and scale down when demand drops without wasting resources.

Security that outmatches DIY protection: Cyberthreats have become relentless, and if you’re running your own IT infrastructure, keeping up with security can feel like fighting off an army with a small stick. Public cloud providers invest billions in cybersecurity, offering protection far beyond what most SMBs might achieve on their own. With the increasing sophistication of cyberattacks, trusting a cloud provider’s defenses is often safer than trying to build your own fortress.

Future-proofing with AI & big data: The cloud has evolved through various waves—from web-based apps to enterprise migrations to big data and now AI. Training AI models requires enormous computational power and storage, making public cloud the only viable option for most businesses. If you want to leverage AI-driven insights, the cloud is your best bet.

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Public cloud levels the playing field

Why struggle to maintain a fish tank when you can sail the open ocean? SMBs shouldn’t wonder whether to use the cloud—they should ask, why not? Public cloud is their secret weapon, leveling the playing field against enterprise giants. It provides access to cutting-edge technology without the high costs and complexity of hybrid setups. For scalability, security or advanced computing power, public cloud offers the kind of agility that lets smaller businesses punch above their weight.

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