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Public Peering

Public peering is configured over the shared platform of Internet Exchange Point. Internet Exchanges charge a port and/or member fee for using their platform for interconnect.

If you are a small cloud or network provider with less infrastructure, the peering via an Internet Exchange is a good place to start. As a big player on the market, it is a good choice because you are also reaching smaller networks on a short path.

Private Peering

Private peering is a direct physical link between two networks. Commonly the peering is done by one or more 10GBE or 100GBE links. The connection is made from only one network to another, for which any site pays a set fee to the owner of the infrastructure or colocation that is used. Those costs are usually cross connect within the datacenter.

That makes private peering a good choice when you need to send large volumes of traffic to one specific network. That’s a much cheaper option when looking on the pricing per transferred gigabyte between both networks than with public peering. When peering private with providers you may need to follow some peering policies though.

Source : https://www.altaro.com/hyper-v/microsoft-azure-peering-services/