Pulsant Blog

Private cloud vs public cloud: why businesses shift

Written by Pulsant | May 1, 2025 1:08:56 PM

We're taking a look at our clients' journey to a hybrid-cloud architecture, exploring the benefits of private cloud vs public cloud, and how this supports a modern cloud migration strategy.

In a previous post, we explored the drivers behind moving from an on-premise to cloud migration approach into private clouds environments.

We demonstrated that – based on where data originates, where it is stored, and how it is used - businesses can position themselves on a spectrum ranging from an on-premise infrastructure at one end to public cloud on the other.

From on-premise to cloud migration: the first shift

There are many drivers encouraging organisations to migrate from on-premise to cloud, particularly into private cloud environments.

This “shift-right” reflects the first stage of a broader cloud migration strategy, where businesses move away from legacy infrastructure toward more scalable, flexible solutions.

What is “shift left” in cloud migration?

There is also a ‘shift-left’ trend emerging.

This can be characterised as a move from public cloud to private cloud, as organisations refine and optimise their cloud environments.

Private cloud vs public cloud explained

  • Private cloud provides dedicated infrastructure for a single organisation, often with greater control and visibility
  • Public cloud is delivered by third-party providers over the public internet, shared across multiple organisation

This comparison is central to understanding private cloud vs public cloud decisions.

Why businesses are moving from public cloud to private cloud

Data sovereignty and compliance

Sovereignty remains a major driver.

Public cloud providers typically have hyperscale, centralised data centres, meaning data can move across borders. Increasing regulatory pressure is forcing organisations to answer:

  • Where is your data stored?
  • Where has it travelled?

Private cloud helps minimise data movement and supports compliance requirements.

Cost predictability and cloud optimisation

Beyond regulation, there is a steadily growing commercial case.

As businesses expand in public cloud environments, many encounter:

  • Unexpected cost increases
  • Hidden fees (e.g. egress, overprovisioning)

This has made cloud cost optimisation a key factor in cloud migration decisions.

As far back as 2021, Gartner cautioned that companies are overpaying by up to 70% for their cloud infrastructure.

Performance and service challenges

Large public cloud providers have often fallen short of the needs of UK businesses.

Challenges include:

  • Reduced access to human support
  • Limited transparency
  • Standardised service models

The UK Competition and Markets Authority (CMA) investigation into hyperscale providers, found that they engage in practices that may harm competition[1].

This has led organisations to reconsider their cloud migration strategy.

Security considerations

Security is another concern.

Research has shown that organisations relying on public cloud model took an average of 310 days to identify and contain breaches[2].

Private cloud environments often provide:

  • Greater visibility
  • Faster response times
  • More controlled security frameworks

Why private cloud is becoming the preferred choice

Against this backdrop, the move to a regional, sovereign private cloud provider, with fixed, predictable costs, and greater transparency, and access to local expertise, has become increasingly attractive for businesses refining their cloud migration strategy.

This reflects a broader shift in the private cloud vs public cloud landscape, as organisations prioritise control, compliance, and cost efficiency.

Private cloud market growth and industry trends

Technavio has forecast that the global private cloud services market will grow at a CAGR of over 19.6% from 2025 to 2029[3], highlighting the accelerating demand for more controlled cloud environments.

Supporting public to private cloud migration with Pulsant

Pulsant's Private Cloud (PPC) is a sovereign cloud platform designed to support businesses as they move from public cloud to private cloud environments. Based on our owned and operated UK data centres and a high-performance nationwide 400Gb network, with access to a private ecosystem of partners, PPC helps businesses maintain compliance with emerging regulations, and remain secure and competitive as they move from public cloud options.

[1] Cloud services market investigation: provisional findings - GOV.UK

[2] As reported at 65+ Cloud Computing Statistics Updated for January 2025

[3] See Private Cloud Services Market , 51% of Growth to Originate from North America, Technavio