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.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags public cloudcloud computingprivate cloudinternet

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments