AWS vs Private Cloud for MSPs: what's best for growth

If you’re running an MSP, you’ve probably felt it. At first, AWS seemed like the obvious move: global scale, fast setup, and an endless toolbox of services.

But as your client base grows, so does the complexity. Billing becomes harder to predict. Support tickets pile up. And suddenly, the infrastructure that was meant to accelerate your business starts to slow it down.

At some point, the question arises. Not always explicitly, but in every budget review, every scope discussion, every late-night troubleshooting call.

Is this still the right platform for us?

This is where the AWS vs private cloud decision starts to matter. Not as a brand loyalty issue, but as a business model one. The platform you choose will influence how you price, support, scale, and deliver. It also shapes how much complexity your team inherits along the way.

This guide breaks down both options and how to decide which one fits your MSP’s growth strategy.

Understanding the models

Let’s get the definitions straight.

You don’t have to pick sides. Most MSPs use both. The value comes from knowing when and why to choose one over the other.

Cost is more than a line item

AWS pricing seems simple at first. But once you scale past a few clients, the reality sets in. Everything is metered and everything fluctuates. Traffic spikes mean extra charges. Long-term retention costs more. A high-performance workload for just a few hours can lead to an unexpected invoice.

It becomes harder to offer clients fixed pricing without adding buffers. And those buffers eat into your margin. Private cloud turns that around. Most providers offer tiered or flat-rate pricing. That lets you:

• Set clear margins from the beginning

• Bundle services without surprise overheads

• Price based on value, not just usage

Predictable costs let you scale profitably and confidently.

Performance and control

AWS is great for elastic, dev-heavy environments. But MSPs usually need predictability, not just flexibility. Multi-tenant workloads, SLAs, and custom setups can be awkward on a platform designed for mass scale.

Private cloud gives you the control AWS often lacks. You define performance levels. You set the policies. You isolate workloads without resource contention. Legacy systems are easier to support, and day-to-day delivery gets simpler.

That means less firefighting, faster onboarding, and more consistent results across client environments.

Compliance and data sovereignty

AWS can tick the compliance boxes, but only if everything is configured just right. And when something goes wrong, you carry the responsibility.

Private cloud gives you direct visibility and accountability. You know where the data is, how it’s accessed, and what protections are in place. No guesswork. No need to decode another vendor’s platform to pass an audit.

This is especially important in sectors like healthcare, finance, and legal. Your clients expect local data, local control, and clear answers about how their information is protected.

Support that actually supports you

When you raise a support ticket, who’s on the other end?

With AWS, it might be a long wait, a support maze, or someone who doesn’t know your stack. You’ll likely need to pay extra for real help.

This kind of support does more than solve issues. It protects your client relationships when things get tough.

Scalability that makes sense

Yes, AWS can scale globally. But do you need that kind of reach?

If your focus is local or regional clients, hyperscale infrastructure can be overkill. Private cloud gives you room to grow at your own pace, without runaway costs or bloated complexity.

What you get:

• Tier III and above data centres across Australia

• Built-in redundancy between sites

• Growth aligned to actual demand

If you need global reach later, you can add AWS into a hybrid model. But your core workloads stay in an environment built for MSP operations.

Multi-tenancy without the chaos

Running multiple clients on AWS can work, but it often means managing dozens of accounts and policies. It’s complicated and error-prone.

Private cloud simplifies that. You get clean separation between clients, unified tools to manage them, and billing that doesn’t need a spreadsheet to decipher.

It’s not about cutting corners. It’s about choosing a structure that fits the way MSPs actually run their businesses.

Does your platform support your growth?

Some MSPs do thrive on AWS. Especially if they work with fast-moving SaaS companies or global dev teams.

But many are growing through:

• Recurring service contracts

• Local delivery models

• Long-term client relationships

• Infrastructure as a value-add

For those MSPs, private cloud isn’t a compromise. It’s a strategic advantage. It protects margin, supports reliable delivery, and reduces complexity.

Hybrid approaches are always on the table. Just make sure the foundation supports the way you grow.

Final word

AWS has its place. But for MSPs building long-term, service-led businesses, it often creates more friction than freedom.

Private cloud gives you the control, predictability, and support hyperscalers don’t. It aligns with how you deliver, how you price, and how you scale.

If your current platform is working against your model, it’s time to rethink what’s underneath.

[Talk to our team about building infrastructure that fits your MSP]