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For this reason many of the benefits of cloud computing such as outsourcing IT infrastructure and economies of scale will be less evident, however security risks and data transfer bottlenecks may be mitigated.
A private-public hybrid cloud may be used to store sensitive data in-house while outsourcing storage of other data.
When considering outsourcing computing resources to a cloud provider the risk that the service may become unavailable must be addressed.
When outsourcing to the cloud, overheads like power, buildings, administration, maintenance, backup and software licensing are also transferred and any comparisons between cloud and in-house IT resources should consider this.
The provision of computing resources is expensive and outsourcing some of the associated responsibilities for this to a third party can theoretically cut costs and enable the user to focus on their core functions, leaving selected aspects of IT provision to be managed by a cloud provider that due to economies of scale can offer cheaper and often better services.
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