When organizations look at leaving on-prem VMware, "the cloud" gets treated as one destination. It isn't. Multitenant private cloud (a VMware Cloud Service Provider) and public cloud (AWS, Azure, Google Cloud) are different models with different economics. Assuming public cloud is automatically cheaper or simpler is where a lot of budgets go wrong.
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The two models
Multitenant private cloud. A VCSP runs many customers on shared hardware, each logically isolated with reserved resources. You keep running vSphere and you keep networking the way you always have. See our multitenant VMware cloud guide for the full breakdown.
Public cloud. AWS, Azure, and Google Cloud provide on-demand infrastructure at massive scale. Workloads are not dedicated to specific hardware, and you adopt the provider's networking and operating model. It is highly elastic, but that elasticity comes with usage-based billing and added complexity.
Cost and predictability
This is where the two models diverge most.
- Egress and ingress fees. Public cloud charges for data transfer, both when you move data in and when anyone accesses it. A workload budgeted at one number can end up costing close to double once transaction fees are counted, and those fees fluctuate month to month, which makes budgeting hard.
- Certified staff. Operating public cloud well requires engineers with the right certifications and experience, which is a real and recurring salary cost. With a managed private cloud, the provider operates it for you.
- Predictability. Multitenant private cloud is typically a steadier, more predictable monthly cost, which is one of the main reasons some organizations pull workloads back out of public cloud.
Networking and control
In public cloud, you have to change the way you network to match how the provider wants you to operate. In a private cloud, multitenant or dedicated, you (or your client) can keep networking the way you always have. For teams with established network designs and dependencies, that difference alone can decide the project.
Compliance
Certifications cut both ways. FedRAMP authorization today is held by the large public cloud providers (AWS, Azure, Google Cloud), and not by the VMware Cloud Service Providers. That said, many VCSPs map the majority of FedRAMP controls even without the formal, expensive certification. For HIPAA, PCI-DSS, and SOC 2, both private and public providers can qualify, and compliance lists vary significantly by provider, so it is worth comparing them directly against your requirements.
Side by side
| Multitenant private cloud | Public cloud | |
|---|---|---|
| Runs VMware | Yes, native vSphere | Only via AVS / GCVE / VMC; otherwise re-platform |
| Cost predictability | Steady, predictable | Variable (egress / ingress, usage) |
| Networking | Keep your existing model | Re-architect to provider's model |
| Operations | Provider-managed | Needs certified in-house staff |
| FedRAMP | Maps controls, not certified | Authorized |
| Best for | Predictable cost, keep VMware | Elastic scale, cloud-native, FedRAMP |
It is often both
In practice this is rarely all-or-nothing. Many organizations run a hybrid mix: some workloads in public cloud, some on a private multitenant or dedicated cloud, and some still on VMware. The real exercise is deciding what belongs where, which is exactly what a vendor-neutral advisor helps you map.
Figure out what fits
The right split depends on your workloads, compliance, and budget tolerance. A Bridgepointe advisor compares private and public options against your actual environment, free and vendor-neutral. Start with a free assessment, or see every route in the top migration solutions guide.