Private cloud market expands as interest peaks

During the past several years, there has been some general confusion in the business world as to which cloud computing model best suits corporate needs: the public or private offering. More recently, however, executives have come to better understand the cloud and all of its working components and characteristics, leading them to acquire a stronger interest toward the latter.

A recent survey of nearly 630 respondents by TechTarget highlighted the growing interest in the private cloud, noting that more than 15 percent of decision-makers said they intend to implement a private cloud during 2013, up from 8 percent in 2012. Interest in the public cloud grew less significantly, increasing from 4.1 percent to 4.5 percent.

Enterprises are becoming more involved in private cloud affairs largely because IT departments are beginning to understand the cloud environment. For a long time, many companies assumed anything automated in the cloud was a private solution, though this perception is quickly changing into something more accurate.

"Now, people are getting it," cloud consultant John Treadway said, according to TechTarget. "Now they're saying, 'Well, if it can't give me a VM or service catalog item, fully automated and delivered in five to 10 minutes, it's really not a private cloud.'"

With understanding comes maturity
Technology experts noted that companies now have various layers of private clouds, as some organizations still rely on first-generation solutions, which enable decision-makers to host older applications without too many problems. At the same time, some executives are looking for more cost-effective and efficient private clouds that will provide employees with new opportunities.

"We're still in the adolescence of private clouds - not quite in the infancy and we're certainly not full-grown adults here," Treadway told TechTarget.

Renub Research also highlighted the growing interest in the private cloud, noting that the market for the hosted services is forecast to expand at a compound annual growth rate of more than 21 percent between 2011 and 2015. As organizations implement private cloud solutions, the business world as a whole will become more productive and cost-efficient.

In the coming years, organizations will be pressured into the cloud market if they want to stay competitive with rival enterprises in their industries. By taking the time to understand the basic - and complex - ins and outs of the cloud landscape, decision-makers will be able to provide their firms with more sophisticated opportunities.

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