Cloud technology is all the rage these days with technology firms and online services. Chances are good that no matter what type of solution you’re looking for, whether it’s CRM, ERP, or even simple document creation, the main sales page of the solution has the word “cloud” featured prominently.

There’s a good reason for this: Cloud technology does indeed make your life easier. Having your important data backed up to a remote source – one where it’s easily accessible from anywhere in the world – is a big bonus to your productivity and the work of your employees. But it’s important to understand the basics of some of the more common cloud solutions before making a decision on which will work best for you.

Do you know the difference between public and private clouds?

The Public Cloud

If you’re looking into cloud ERP software and you see the phrase “public cloud,” here’s an explanation: With a public cloud, server space is shared by anyone using that particular service. In other words, your data shares a home with the data of other users working with the same cloud ERP service provider. No information is revealed between parties; you’re just renting a common digital space and using it as needed.

Public cloud services are generally less expensive than private cloud, run on newer technology, and have high-end security specialists monitoring them for any potential trouble. Cloud dynamics shift between providers, but public clouds are flexible, reliable and powerful.

The Private Cloud

Cloud ERP software that relies on private clouds is a bit different. Instead of you sharing space with other nearby businesses or subscribers, the cloud infrastructure for your storage is built and hosted specifically for you. You’re the only inhabitant and the only user, and the technology exists on your internal system. The big bonus to using a private cloud ERP solution is privacy: Your data is safer on a private cloud.

That being said, private clouds are more expensive and require more dedicated tech support. If you run a private cloud, it is solely your responsibility and you’ll need IT employees to manage it. Private clouds work well for businesses with large, underutilized datacenters.

There are benefits in using both private and public clouds. Overall, which cloud ERP solution you work with will be based on your specific needs and preferences. For more information about Cloud ERP or other software please visit