In-House Cloud vs 3rd Party Cloud like Amazon AWS

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In this short video, you would learn what does it takes to setup an in-house cloud service and its pro-cons with respect to 3rd party cloud service like Amazon AWS or Google Cloud. -------------------------------------------------------- Script of the video: Cloud has become essential for many businesses. The question is; should we really build our own private cloud or use third party cloud services. Meet Patto; who loves in-house Cloud. Whereas Elly is a die-hard fan of Amazon AWS. Let's see what they do while they start a business needing a cloud based server? For the given situation, what Patto did? He chose a data center situated at a naturally stable geographic location with all the facilities. Then he buys server equipment, software and travel to the data center for the setup. He sets up all hardware, software, and networking stuff from scratch. At last he has a Ninja fast app server running sufficient for one million customers. While Elly simply sign up an account with Amazon AWS while sitting at her office and within few clicks, and bam! She is running an app server within a very short span of time. While here server is optimized and can cater up to two hundred customers, it is more than what she needs! Now if we compare these two cloud server; it looks like Patto's high end server built for 1 million users is currently used by just one hundred users? Ok! Is it not too big for the current load and hence inefficient? All the things were going well and then one night, both the data center experience an outage at one AM morning. Patto packs his bag and fly down to his data center, make sure that everything is working and he is back to business. While Elly simply checks with Amazon Customer care and gets a confirmation that the AWS Engineers has taken care of her needs. Learning from this outage, both Patto and Elly decide to setup a backup server; which must be situated in different geographic region. While Patto repeats the whole process of buying new hardware, choosing new data center and set it up as a backup; Elly simply spend a day in doing all the setup online just in few clicks. Now let's see what is the initial cost of setup? Whoa! Its huge eighty five thousand dollar for Patto and just five thousand dollar for Elly. Is Patto making a mistake by creating an in-house cloud service? As user base for Patto and Elly grows over the year, Patto is relaxed because he already has a server which can handle up to one million customers. But it was not too difficult for Elly to provision new servers and scale up as the user-base increases. Its more than 10 years now for Patto and Elly running their business successfully, let's check the long run yearly cost of cloud for them. Oops! Its whopping Forty thousand dollar each year for Elly, while it's just Six thousand dollar a year for Patto. Conclusion!! It seems that the 3rd Party cloud service provides a quick-start for new business with lowest initial cost, the long run cost of running the business is lower in having in-house cloud system.