Accounting firms deal with critical financial data every day, which makes it very challenging to secure the client information they possess. Though cloud accounting promises a secure solution to businesses, a debate always arises – Which cloud platform will be most suited to satisfy the specific business accounting needs?
Therefore, before deciding which cloud model is best for your organization, it is imperative to understand the intricacies of both.
In a public cloud infrastructure, multiple organizations share resources over the same network. It is also known as a multi-tenant environment as it’s just like renting an apartment, where multiple tenants share the same apartment.
On the other hand, private cloud infrastructure is the one dedicated to a single organization. It allows organizations to host their application and data in a private environment with exclusive access to resources. The private cloud can be created within the organization or chosen as a special service offered by the cloud hosting provider.
Let’s understand how a private cloud is better than the public cloud for your accounting business:
1. Security and Privacy
The public cloud environment has improved upon its security measures at the physical, network, and admin level over the years. But, sometimes, firms handling sensitive information like accounting data don’t wish to compromise on a network whose resources are shared by other organizations.
On the other hand, private cloud environments have gained popularity amongst organizations because of its unmatched security and compliance features offered by the service providers. A private cloud is secured with multiple layers of security and firewall protection, ensuring clients that their data is inaccessible by any unauthorized personnel.
Most public cloud networks lack the option of customizing the resources to match up to the dynamic business requirements. Therefore, organizations are often reluctant to choose such networks.
On the other hand, private clouds give you the freedom to customize the environment to adhere to specific business needs. It allows businesses to maintain full control over their application and data and add or remove resources that correctly fit the accounting processes.
The private cloud environment is best suited for businesses in the financial sectors, where mismanagement of data can directly impact the firm’s performance. Such enterprises demand a network which allows business continuity and maximum uptime to enjoy uninterrupted services round the clock.
In a public network, as the resources are shared among various processes, the performance can be a little on the low side as compared to the private cloud.
In a public cloud infrastructure, multiple businesses share the same space, which might lead to an increased load time when the traffic demand is high, turning out to be less efficient than the private cloud. For businesses that cannot afford downtime, require a network that supports their increased performance needs.
Whereas, the private infrastructures are designed as per your business type and requirement. A private cloud server helps businesses automate processes, ease deployment of applications, and offer high bandwidth range to maintain business agility. The total control over the network allows heavier business applications to run smoothly on super-fast servers.
As the public cloud does not offer dedicated resources, it is sometimes difficult for businesses to scale their accounting process. Public clouds don’t support the dynamic growth of any business because of the wide amount of audience they cater to.
However, businesses using private clouds for their accounting process turn out to be successful as they can scale up or down as per their dynamic workloads, paying only for what they need. Such networks can be tailored to meet the firms’ preferences and business requirements.
Public cloud reduces the upfront cost for businesses that they can utilize in various other resources. It offers lower expenses as enterprises share the cloud environment with other businesses in the same network. These costs can often negate the benefits of private cloud and draw enterprises towards public networks.
However, private cloud server hosting plans turn out to be cost-efficient in the long-run. The diverse functionalities such as premium plans and features with the private cloud streamline your business processes and help you grow.
With the ever-growing security concerns such as data theft, hacking, and ransomware attacks, companies prefer an environment with multi-layered security. Unlike public networks, organizations today, look for a network providing total control over their resources and infrastructure to streamline their business processes better.
Private servers allow you to give role-based access to employees depending upon their department and responsibilities. By setting up user permissions, business owners make sure to avoid unauthorized access over critical financial data from all means. It allows businesses to gain full control over their data.
Businesses are adopting next-gen tech like cloud as it turns out to be advantageous by offering the ability to scale as per their requirement, support dynamic workloads, and cost-efficient plans from a sense of business technology and perspective.
Depending upon various factors such as security, compliance, efficiency, and performance, enterprises must figure out which model fits best per their workload.
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