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Private Cloud vs. On PremiseCustomers have many options when considering platforms both on premise and in the Cloud. In this blog we will look at Private Cloud in your datacenter and in ours. But first, lets start with a definition of Virtual Private Cloud and Private Cloud.

Virtual Private Cloud or VPC is in fact a multi-tenant platform that is segmented to deliver the isolation and granular control of the virtual networks that are found in dedicated infrastructure, while leveraging all of the benefits of a virtualized public cloud. In this model, multiple subscribers are the tenants.

Private Cloud refers to dedicated infrastructure where the enterprise may or may not segment infrastructure, but in all cases the enterprise is the only tenant.

Traditionally, Private cloud has been associated with bare metal infrastructure, but technically speaking, Private cloud can also be virtualized.

All Private Clouds Are Not Equal

As previously stated, Private Cloud can be hosted on physical or virtual infrastructure. In fact, Private Cloud can be hosted on premise and off premise in the Cloud. At Symmetry, we offer true private cloud where there is a single tenant, as well as a robust Virtual Private Cloud.

All Cloud requires infrastructure, and self-hosted Private Cloud requires all the associated overhead, including hardware refreshes, maintenance contracts, licensing fees and the associated support costs, whereas a hosted Private Cloud model is generally an OPEX model where customers can select the level of management and engagement.

There are benefits of on-premise hosting, particularly for organizations that have infrastructure that has not been fully depreciated or have significant investments in licensing It is not uncommon for organizations with complex or legacy systems like SAP to choose to remain on premises for a variety of reasons including a shortage of qualified hosting partners. Organizational conservatism has gravity and can also sway the on premises vs. cloud debate, making companies reluctant to change their existing model. Having said that, Virtual Private Cloud can be a great fit for enterprises that want to outsource these critical systems.

No One Size Fits All

Say you’ve decided that on-premise hosting is no longer a good fit for where your organization is at in your journey, but you are also not ready to move everything to Public Cloud. This is where having a Virtual Private Cloud may be the best pathway forward. Because enterprise landscapes like SAP are complex and idiosyncratic, tactics that work for one environment might not be a good fit in another. Partnering with a team for private cloud migration that has extensive experience with your technology stack will ensure an effective strategy and supporting project plan and set you up for long-term success. For example, an SAP HANA® MSP will know how to use SAP DMOSAP TDMS and other tools to speed and simplify migration.

Ideally, your technical and functional partners should be able to leverage all the skills you need to plan, test and execute your cloud migration strategy. This will prevent the skill gaps and miscommunications that can emerge with a larger vendor portfolio and ensure the responsibilities of each party are clearly spelled out. They will also be able to map out where and how your cloud strategy will save you time and money and build the appropriate business case for your particular landscape.

Between hardware, software, infrastructure and support, a typical company would spend in the neighborhood of $416,000-438,000 in the first three years running SAP HANA onsite. Working with Symmetry would save them about $150,000 in the same timeframe. Additionally, it would allow the business to adopt a stable, monthly OpEx model, eliminating the unpredictability of onsite expenses. Check out our SAP HANA Deployment Guide to see the complete on premises vs. cloud cost breakdown.

The Difference for SAP

As mentioned, private cloud offers isolation and that can contribute to a consistent and predictable experience. This is particularly important for sensitive applications like SAP. Having said that, VPC performance is engineered into the architecture that has been engineered specifically to host SAP workloads. And while the perception is that Virtual Private Cloud is more expensive then Private Cloud solutions, that is simply not always the case. Finally, managing SAP in the cloud depends on architecting for multiple landscapes and third  party applications. In this case, VPC and Private Cloud can both deliver similar user experiences. Virtual private cloud is as secure as on premise in most cases; however, a highly-customized SAP ecosystem will migrate differently. For established companies, a strategic, multi-phase upgrade is the best way forward. This can require a period of hybrid cloud adoption as you progressively transition to a fully cloud-based environment. A multi-phase bridging strategy will allow you to get full use of existing assets and minimize disruption and control costs.

Jay Graboff, Cloud Product Manager

Jay Graboff is a Senior Cloud Product Manager that has been evangelizing innovation and digital transformation before there was either. With over 8 years delivering Public, Private and Proprietary Cloud, his passion and love affair with technology is rooted in what the Cloud can enable.