Alternative Clouds Blurring The Lines Between Public and Private Clouds

The rise of public cloud services provide organizations quick access to IT infrastructure and services making it an attractive option for many businesses. However, as an organization’s workloads grow and their needs become more complex, they may find that public cloud services are no longer cost-effective, or that the lack of control and security of public cloud services is unacceptable for their business needs. This is when many organizations start looking into alternative cloud solutions.

There is a defining point in every organization’s growth, one that will determine their profitability and success. When this happens, you can:

• Stay in your comfort zone, stick with what you know and trust, and watch your profit margins hemorrhage as your growing and unpredictable infrastructure cost consumes your revenue.
• Or, your can go back to the drawing board, recognizing that your organization’s needs have dramatically changed and explore cost effective options to satisfy your current needs.

We’re no longer talking about single VMs that costs 10s of dollars a month. You’re now looking at 100s or 1000s of VMs that cost you thousands on a monthly basis. And while your revenue has increased, if you’re not seeing a corresponding increase in profits because your expenses are growing faster than your revenue, then the task of reigning in your infrastructure costs is past due.

Public clouds are convenient, but expensive

One of the big reasons organizations choose to ignore high costs and stick with public clouds is the instant access to resources to scale workloads up and down. But, what if I told you there are private clouds that offer you the same perks at a fraction of the cost of public clouds? In fact, switching workloads from public clouds to OpenMetal’s On-Demand OpenStack private clouds can reduce your infrastructure cost by 80%.  

With public clouds you pay only for what you use. With a private cloud you’re always paying for the entire cloud, so how can private clouds possibly be 80% cheaper than public clouds? Well, they become cost effective at a certain price point. If you are spending over $7,000 a month on public cloud, you should definitely start weighing your options.

Yup, that’s right, once your cloud bill grows to something as small as $7,000 a month you’re already overpaying for cloud services. Now whether that’s enough for you to go through the trouble of migrating your workloads or not, that’s up to you. But it’s important to note that while it is easy and cheaper to start out putting workloads on public clouds, you very quickly reach a point where you are significantly overpaying for resources that you use. Before you know it you’re paying over $23,000 a month for resources that can easily be 85% less if you switch to a hosted private cloud. 

Just think of the business model – public clouds were designed for organizations that do not need resources of an entire cloud, but needed some cloud resources to start operating. When your organization starts using more resources, it’s cheaper to pay in bulk for a whole cloud versus paying high prices for sections of a cloud.

Let’s look at the savings across 3 different sizes of OpenMetal private clouds when you comparing the cost of similar resources on AWS.

Standard V2

Comparing OpenMetal’s Standard V2 cloud on which you can spin up roughly 68 VMs equivalent to AWS EC2 c5ad.large without any additional cost or fees. Pricing for both includes 9TB of Egress.

That’s a saving of 80% monthly or $121,090.32 over 3 years! If your public cloud bill is as low as $7,000 a month, you can save 120k over 3 years by switching, that’s a lot for startups but maybe it’s not enough for your organization to go through the trouble of migrating your workloads. Let’s look at your savings as your workload grows. 

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Large V2

300 AWS EC2 T3.medium vs OpenMetal Large v2

Comparing OpenMetal’s Large V2 cloud on which you can spin up roughly 300 VMs equivalent to AWS EC2 c5ad.large without any additional cost or fees.

Pricing for both includes 18TB of Egress

That’s a saving of 85% per month or $344,241.36 over 3 years! Saving over $20,000 a month or  $344,000 over 3 years is definitely harder to ignore for most organizations. 

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XL V2

593 AWS EC2 T3.medium vs OpenMetal XL v2

Alternative Option To Traditional Public and Private Clouds.

OpenMetal’s On-Demand OpenStack are hosted private clouds that you can deploy in just 45 seconds. These cloud cores consist of three servers, are powered by OpenStack, backed by Ceph, and provide organizations with full control over their cloud infrastructure.

With OpenMetal’s on-demand private cloud, users can easily spin up a private cloud with just a few clicks and it’s just as easy to add and remove nodes when you want to scale your infrastructure up or down. Deployed clouds are production ready and preloaded with the following OpenStack projects: Aodh, Ceilometer, Cinder, Glance, Gnocchi, HAProxy, Heat, Horizon, Keystone, Magnum, Neutron, Nova, Octavia, Rabbitmq and Watcher. If you want to learn more about these projects and how they affect the functionality of your cloud, you can read more about them here. You can also add Designate, Barbican, and Masakari after you’ve deployed your cloud. OpenMetal clouds, utilize Kolla Ansible, Docker, and provide Kubernetes integration.

What other public cloud perks can you tap into with OpenMetal? Well, OpenMetal customers can choose their payment plan (pay as you go or 1-5 year agreements), enjoy multi-region, rapid proof of concepts, managed hardware, rapid scaling, and self-service purchasing.

But is it really a private cloud? Yes! 100% of the hardware is allocated to your cloud. Once you deploy a cloud no one else has access to your hardware. You can experience tenant first goals, private security model, root level control, hardware tuning, no license costs, custom flavors and no surprise billing. With exclusive hardware access, private networks and root level control, you are ready to move into being your own AWS and provision your resources as you see fit.  Explore the difference between a true Private Cloud vs Virtual Private Cloud.

Who Should Use OpenMetal On-Demand OpenStack Clouds?

• Organizations that require strict security and compliance requirements such as healthcare, finance, security, etc. With public cloud services, users are unable to control the security of their data, leaving it vulnerable to cyber-attacks and breaches. The ability to control the security of your infrastructure is such an important factor that you may want to have that level of control even if your industry isn’t heavily regulated.  By choosing a hosted private cloud service, organizations regain control their security measures and ensure that their data is protected at all times.
• Organizations that require high-performance computing (HPC) infrastructure, such as scientific research, financial modeling, and big data analytics. With OpenMetal’s On-Demand Private Cloud, users can customize their infrastructure to meet their specific HPC requirements, providing them with the flexibility to scale their infrastructure as needed.

In conclusion, OpenMetal’s On-Demand OpenStack cloud cores provides organizations with an alternative cloud solution that combines the best of both public and private clouds. With full control over their infrastructure and cost-effective pricing, organizations can meet their specific IT infrastructure needs and ensure that their data is secure at all times.

Whether it’s for strict security and compliance requirements, high-performance computing, infrastructure cost management, or building and testing new applications and services, OpenMetal’s On-Demand OpenStack cloud is an excellent alternative cloud option for organizations looking to significantly reduce their infrastructure costs without compromising on the performance of their cloud.

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