Western European companies prefer private cloud
A new report by IDC noted that cost savings and efficiency improvements are the primary driving factors behind deploying the private cloud in Western Europe. The market itself is forecast to expand at a compound annual growth rate of more than 23 percent through 2016, eventually generating $7.9 billion in revenue.
"[Private cloud adoption is] driven by the need for cost savings and efficiency and with a longer perspective of creating increased flexibility and is across the board - from hardware, to software, to management, networking and services," IDC research director Mette Ahorlu said. "Creating a private cloud has an impact on all aspects of IT infrastructure."
The report noted that many enterprises throughout Western Europe are still in early stages of cloud adoption, either testing or just beginning to roll out one or several different services but not deploying the cloud on a company-wide scale. This will change in the next two to three years, however, as the cloud transitions into an essential aspect of IT, IDC said.
"The growth of private cloud is even more impressive in the context of the parlous economic situation," Ahorlu said.
Analysts also revealed that while security and compliance issues are still likely to remain inhibitors to the public cloud, these same qualities could drive adoption of the private cloud, as premise-based systems can be monitored and integrated with more robust data protection tools.
A study by CA Technologies offered similar findings, noting that more than half of businesses in the United States are deploying private cloud computing models. As more companies around the world look to gain a competitive advantage over rival firms, they will deploy the cloud to boost efficiency, reduce overall IT expenses and enhance employee productivity.
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