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Why public clouds don’t make sense for critical applications


For critical applications, businesses hesitate to use the public cloud due to concerns over performance and security. HPE Data Center Infrastructure Solutions solve the challenge by creating a Hybrid IT environment. 

Blog_Cloud_Public.pngPublic cloud solutions provide on-demand, expandable IT at a manageable cost and make sense for certain use-cases, such as application development and testing. But for applications that run the business or contain sensitive data, these platforms present a level of risk that most businesses would rather avoid.

A recent survey of the financial industry illustrates how businesses are hesitant to deploy critical applications in the public cloud. Frost & Sullivan found just 5% of financial firms entrust their proprietary platforms to a public cloud environment. Their caution is caused by several constraints:

  • Application Performance: The public cloud introduces latency and inconsistency. Application performance is only promised as a “best effort” since it’s impossible to know which users and workloads are contending for server resources at any given time.
  • Unreliability: Compared to an on-premises data center infrastructure, public clouds lack resiliency, and network performance is not always reliable. This is a poor combination for applications that require high availability and consistency.
  • Loss of Control: IT leaders at financial firms reject the public cloud for critical applications due to lack of control, incomplete visibility into the infrastructure, and the inability to optimize configurations.
  • Security: Without control over the server infrastructure, or the “neighbors” sharing the infrastructure, businesses are limited in their ability to guard against malware. Multi-tenant cloud environments make it possible for ransomware and other breaches to be introduced by any tenant sharing the infrastructure.
  • Compliance: Although public cloud service providers have increased the number and scope of compliance certifications in recent years, the end-user customer still bears the responsibility for failures to comply with regulations.

The Frost & Sullivan survey also found that 65% of financial firms cite “insufficient ROI” as an important reason not to deploy workloads in the public cloud. Many have discovered high-performance applications actually make more financial sense in on-premises data centers than in cloud data centers.

Hybrid IT compensates for public clouds shortcomings

As a result of the shortcomings of the public cloud, many firms in the financial industry have turned to hybrid IT environments that combine the capabilities of on-premises data centers with the benefits of public and private clouds. This approach can work just as well across many industries.

With a range of deployment options, you can assess the optimal environment for each application based on business priorities and workload characteristics. While the public cloud can suffice for non-mission-critical applications that don’t contain sensitive data, applications that require high-level performance with strict security and compliance controls will likely remain in the on-premises data center.

Mix of IT environments helps drive digital transformation

Hewlett Packard Enterprise (HPE) Data Center Infrastructure Solutions provide hybrid IT environments that combine the agility of the public cloud with the security and control of on-premises data centers. The platform accelerates application time-to-value by utilizing a scalable, composable, and software-defined infrastructure.

This new compute experience is powered by HPE Gen10 servers that enable IT agility, keep sensitive data protected, and provide economic control to allow your business to plan for capacity requirements, eliminate over-provisioning, and pay only for utilized compute resources. By giving you the flexibility to define the right mix of IT environments based on your business needs, Hybrid IT streamlines digital transformation and helps you harness the power of your applications and data. You get the best of on-premises data centers and the cloud—without compromising performance.

To learn more about the Hybrid IT solutions utilized by financial services firms and for a checklist to guide your infrastructure decisions, download the Frost & Sullivan white paper, Optimizing High Performance Applications: What Your Business Can Learn from the Financial Services Industry.

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About the Author


Eric Mullins is an HPE Digital Marketing Manager covering infrastructure news, insights and analysis from multiple segments. Come along for the ride to find out more about the future of data center technology