Cloud-Native vs. Cloud-Based: 5 Differences That Matter for Public Transportation

Boris Surets, Chief Information Security Officer

Boris Surets, Chief Information Security Officer

January 14, 2026

The technology behind public transportation is constantly evolving. Today, everyone is talking about AI and its potential to transform transit operations. But I want to focus on something more fundamental that never became as much of a hot topic, but should be, because it has major cybersecurity implications for mobility systems: Cloud-native versus cloud-based software. 

While the terms sound similar, the differences matter significantly when it comes to safety, scalability, and efficiency.

Below are my picks for the five most critical distinctions between cloud-native and cloud-based software, and why these should factor into decision-making and procurement for your operations and IT teams.  

 

1. Built for the Cloud vs. Lifted to the Cloud

Cloud-native applications are purpose-built to run in cloud environments. They use modern development principles like microservices, containers, and continuous deployment.

Cloud-based systems are generally old or legacy software systems that have been “lifted” to the cloud. These systems benefit from cloud hosting, but the core design remains anchored to the limitations of older, monolithic architecture.

The first option leverages all the benefits of the cloud. The second cannot. 

 

2. Security by Design

Cyberattacks in the transportation sector rose 48% between 2020 and 2025, primarily due to ransomware, DDoS, and phishing. 

Cloud-native systems feature built-in security that’s continuously updated and monitored. The major cloud providers behind these cloud systems, including AWS, Azure, and Google Cloud, offer best-in-class cybersecurity, compliance, and monitoring as part of their infrastructure.

Cloud-based systems, especially those migrated from on-premise servers, often carry over outdated security frameworks. These systems may lack the real-time patching or advanced encryption standards that modern applications offer. On-premise and migrated systems are more vulnerable to attacks, especially in cases where manual updates or inconsistent backup policies are the norm.

 

3. Elastic Scalability and Performance

Cloud-native solutions scale automatically. When ridership spikes or operations expand, the system adapts in real time, without the need for costly upgrades.

Over time, cost savings from lower maintenance requirements and minimized downtime can reduce operating costs by 30–50%.

Cloud-based platforms typically rely on static resources. This means adding capacity can require significant downtime or manual intervention.

For public transportation providers, elasticity is essential, especially during unexpected events, service disruptions, or major urban developments that change travel patterns overnight.

 

4. Faster, Non-Disruptive Updates

According to a Hitachi survey with IT leaders, 56% claimed that technology downtime had a significant negative impact on revenue. 

Legacy systems, including cloud-based ones, are four times more likely to suffer downtime because they lack the automated patching found in cloud-native environments and cannot support the same rapid pace of innovation.

Cloud-native architecture is designed for continuous delivery, which means updates, bug fixes, and new features usually roll out without needing a maintenance window, allowing you to easily opt in to new features without taking the system offline.

 

5. Interoperability and Future-Readiness


Cloud-native platforms are API-first, making them easy to integrate with other tools, like real-time vehicle tracking, payment platforms, or even AI-based optimization engines. If you’re working with lots of tools and platforms, cloud-native will make life easier for you by making sure all your applications play well with each other.

Cloud-based solutions are more rigid. Integrating new features or connecting to third-party tools often involves workarounds or lengthy custom development. This leads to another reason why cloud-based systems are not a great option, particularly for operations with multiple software vendors: the cost of development to connect one additional third-party tool can range from $6,000 to $24,000. As agencies add more and more tools, these costs multiply. 

This flexibility is particularly important for public transportation agencies undergoing digital transformation. As transportation becomes more connected and data-driven, the ability to integrate with other platforms and share information is strategic.

 

Why This Matters for Public Transit

Choosing between cloud-native and cloud-based solutions is a long-term investment in your mobility system's future. Cloud-native software reduces IT overhead, improves cybersecurity, enables faster operational updates, and provides access to continuous innovation.

As a Chief Information Security Officer whose job is to ensure business resilience in a complex digital landscape, I urge you and your IT team to take cloud architecture as seriously as any other aspect of your operation. Cloud-native software better protects your data, drivers, passengers, and business. While cloud-based solutions may serve as a transitional step, they carry inherent risks that transportation agencies and operators should carefully evaluate against their long-term operational and security goals. 

The bottom line: In an era where cyber threats are constantly evolving and passenger expectations continue to rise, cloud-native architecture isn't just a technology decision - it’s the basis of success for all your services and stakeholders. 

To learn more about bringing the highest level of security to your organization or speak to a representative, click here.

 

Further Reading:

Topics: Security, Public Transportation, Innovation, Digital Transformation