Traditional Cloud vs. Owned Cloud


We are now in our second decade of Cloud Computing. The promise of unlimited computing power combined with the outsourcing the care and feeding of the systems is very appealing.  These benefits, however, do not come without significant costs and risks.  Losing control of the budget, security standards, performance benchmarks and even intellectual property have given companies a reason to pause and consider why they went to the cloud in the first place. 

High-performance computing and storage are the foundation and critical core ingredient for companies that need computational muscle and big-data protection. Making this infrastructure the best it can be is essential to your company’s success.

At the end of the day, any enterprise positioned for growth and success is dependent upon the efficiency and speed of its computing power and the ability to store critical data securely.

Let’s look two ways companies host their computer power and data storage/access: Traditional Cloud and Owned Cloud. And let’s compare both to see how much control they have.


Traditional Cloud

Traditional Cloud is the choice by companies that see value in moving away from on-premises hosting (where all equipment is company owned and maintained by their own IT department). This method relies on an outside service provider to do everything to ensure the vital data needs of your company.

They procure, install and maintain all hardware, software, and other supporting infrastructure in their data centers. Companies pay for these services, and access and manage their accounts through the provider’s applications. But companies have little control of performance, security and cost.


While it’s every traditional cloud host’s intention to provide ultimate performance, their host infrastructures need to provide for multiple clients, all vying for precious processing power, bandwidth, and storage. Bandwidth in particular can be the source of problematic bottlenecks and diminished performance.


Security is a major concern on two fronts: hardware infrastructure and the data itself.  Because of the mass of data hosted by a traditional provider, infrastructure and the data the resides on it must be protected at all costs.

Traditional Cloud providers, in general, make sure their physical servers are environmentally protected and secure from outside intruders. The data itself, on the other hand, may not be as safe. Your precious data sits on someone else’s hardware. Providers struggle daily with security breaches to protect critical data from outside intrusion.


Once companies lock into Traditional Cloud, they are at the mercy of incremental cost increases. As infrastructure complexities grow, costs to support them can be astronomical.  The initial investment to save money starts to become less and less obvious.


Owned Cloud

Some companies are bucking the traditional cloud companies by moving to a new type of cloud environment called “Owned Cloud”.  This method enables companies to regain better control of performance, security and costs.

This owned cloud solution involves purchasing IT infrastructure then fortifying it with a third-party provider that offers manufacturing, integration, testing, application installation, basic logistics and fine-tuning systems requirements. Instead of this system being packaged up and shipped, the infrastructure resides and is maintained by the third party.

Owned Cloud offers all the benefits of the traditional cloud providers combined with the performance, security and cost controls organizations need to ensure business continuity.


Customers have better control over their infrastructure when it’s dedicated to just their needs.  They don’t need to compete with other hosted clients for precious processing power, bandwidth and storage.


Security can be better maintained on a system that is not shared amongst multiple organization / individuals that need only a credit card number to gain access. Customized security and stronger encryption are allowable only if the infrastructure is dedicated to you rather than part of a behemoth environment where hackers and malicious actors prey on day to day.


The idea of having a fixed monthly expense rather than an ever-increasing credit card bill is the cost control companies need to ensure success.  Although the initial spend on hardware infrastructure may cost more upfront, companies have better visibility to what the consistent spend will be. After that, third-party services that host and maintain a company’s infrastructure can oftentimes cost much less than traditional cloud hosting. The initial investment becomes a better total-cost-of-ownership in the long run.

The following table gives more comparison on the control you get with traditional cloud hosting vs. owned cloud hosting.


Traditional Cloud vs. Owned Cloud

Traditional Cloud
Owned Cloud
Development and
Development and infrastructure design controlled by provider and out of user’s hands.
Full knowledge and control of incremental development and software.
Host provides rent servers and data storage that is all hardware housed at their data centers.
You own servers and data storage that are designed to your specifications.
Host provides and programs all software and may not support some application software
You can customize your own software environment because it is your own machine.
Can be difficult and costly.
Migration not needed. It is your own infrastructure. 
Hosting company provides secure, climate-controlled environment that host many other companies.
Your equipment is housed in a third party secure, climate-controlled environment to ensure date security and proper operation.
Bandwidth is shared and allocated as host determines. It can be subject to slow downs based on their entire infrastructure traffic.
Owned Cloud data pipelines are more exclusive and can maintain optimum bandwidth better.  Bandwidth costs can be less expensive.
Relatively secure as determined by the cloud host.
Security determined by user and their third-party choice.
Data Security
Your data sits on someone else’s hardware. It’s part of a much larger infrastructure that gets general service. It can be more prone to external and internal breaches – and you may not even know it. Some providers have been known to scrape client data for their own use.
Your data sits on your hardware and is as secure as you make it. You can use security to provide the best protection, tailored to your specific data. Data access can be much more tightly controlled. This is a huge advantage to companies that need the ultimate data protection.
Once you pick your provider, additional resources are out of your control.
Resources can be the right combination of third-party builder / offsite host for your hardware and your company’s IT team.
Lower cost of entry quickly becomes exorbitantly more expensive with almost no ability to control those incremental increases.  Companies are penalized for testing, development and accidentally leaving processes running.
Fixed monthly cost with no surprise upcharges.  Makes budgeting simple and straightforward.  Companies can use the resources as they need since it is not charged on a usage basis. No penalty for any development, testing or accidentally leaving processes running.


PSSC Labs and Owned Cloud Hosting

PSSC Labs architects and builds high-performance computing and storage solutions for companies requiring the fastest computational capabilities and maximum data storage. These systems go far beyond typical systems.  We have decades of experience providing high-performance computing clusters (HPCs) and storage solutions that continue to exceed requirements. 

In addition to its renowned on-premises solutions, PSSC Labs is working on infrastructure designs that help provide owned cloud hosting.

We work with your internal teams to architect and build your data processing and storage solutions to your exact requirements. You can purchase our high-performance systems then house and maintain them at your chosen secure, environmentally controlled offsite facility.

PSSC Labs is now building its own data center to host customer cloud infrastructure offering a full vertical integration from design, development, manufacturing, integration, hosting, support, and managed services all in one roof.  This unique model provides all the benefits of traditional cloud environment and allows companies to take back control of costs, performance, and security.

We will remain your partner to make sure your system provides long-term, secure operation and long-term product lifecycle.


Contact Us Today to Learn More

At PSSC Labs, we recognize every application has its distinct requirements.  Contact us today at / tel: 949-380-7288 to learn how our engineers can work with your third-part teams to fine-tune our HPC and storage cluster products with our CBeST Manager Software Suite and work with your third-party provider to house and maintain your data infrastructure to ensure your company’s future success.


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