Menu
Enterprises increasingly look to the private Cloud

Enterprises increasingly look to the private Cloud

Private cloud gives enterprises best of both worlds, say analysts

Companies interested in moving to cloud computing are increasingly choosing a private Cloud for the increased security and, often, compliance features instead of the public Cloud, according to a recent survey.

"Companies have noticed that the public Cloud only goes so far," said Allan Krans, an analyst with Technology Business Research. "You can't customise it. The security is what it is. [With the private cloud], you don't have to own the infrastructure, but you get all the benefits of Cloud but with the additional security, compliance and delivery options."

The analyst firm did a recent study showing that private cloud adoption is growing at a faster rate than companies choosing the public Cloud.

The public cloud market has grown 20 per cent year-over-year, according to the TBR survey that polled about 2,200 enterprise buyers worldwide earlier this year. The private Cloud, however, is expected to grow between 40 per cent to 50 per cent a year for the next several years.

The private cloud was an $US8 billion market in 2010 and $US32 billion in 2013. It's expected to reach $US69 billion in 2018, according to TBR.

"We expect the private Cloud growth to outpace public at least for the next five years," Krans said. "Private Cloud is a better fit for large enterprise customers, especially if they're in regulated industries or have workloads -- like HR and ERP, that have sensitive data, are core to the company's mission or might be regulated - that aren't a fit for a public Cloud offering."

Consumers and some businesses that choose a public cloud, use services from companies like Google or Amazon to store their data or run their apps in a shared space. The service providers also manage the information and services, relieving the company's IT workers from handling it.

Companies also can host and manage their own private cloud or they can hire a provider, such as IBM or Rackspace, which will create and manage a single tenant Cloud environment for them.

The managed private Cloud often gives companies the best of both worlds -- the ability to offload a big workload, while being able to add extra security, along with compliance and delivery options.

TBR's study showed that 70 per cent of large enterprises with more than 1000 employees are looking at managed cloud offerings, while 30 per cent are interested in self-built private clouds.

"It makes sense that the private Cloud is growing in popularity," said Patrick Moorhead, an analyst with Moor Insights & Strategy. "They could go public, but larger companies prefer private Cloud because they feel they have more ownership over the quality of service and the protection of the data. There are regulations in certain industries and countries on data handling, too, which makes the private cloud a better choice in certain circumstances."

This article, Enterprises increasingly look to the private Cloud, was originally published at Computerworld.com.

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, on Google+ or subscribe to Sharon's RSS feed. Her email address is sgaudin@computerworld.com.

See more by Sharon Gaudin on Computerworld.com.

Read more about private cloud in Computerworld's Private Cloud Topic Center.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags public cloudcloud computingprivate cloudinternet

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments