In November, 2014, according to Forrester, 55% of the 2,300 IT hardware surveyed showed interest in building an internal private cloud within the next 12 months whereas 33% are already on their way. HP (HPQ), with its core private cloud platform HP CloudSystem Enterprise Suite, was termed as the leader in the overall private cloud services. Apart from HP, Microsoft (MSFT), IBM Corp. (IBM), and Cisco (CSCO) were ranked as top vendors. Rackspace (RAX) Virtual On-Premise Private Cloud is also making their presence felt in market.
The previous chart shows how the spending has been on conventional IT and private cloud infrastructure. According to IDC research notes, spending on conventional IT infrastructure has declined. However, spending on private cloud deployments and spending by cloud service providers is growing at a compound annual growth rate of 16.2% and 15.3%, respectively.
What private cloud offers
In private cloud, cloud services are deployed and implemented on the client’s private networks. Since they’re implemented within the firewall under the control of the IT department, private cloud provides clients with control over the company’s data. They avoid the risks, security issues, and regulatory compliance associated with cloud computing. Cloud infrastructure is solely operated for the client. It’s either managed by the client or a third party. Private cloud operates like a public cloud only, but the resources are operated exclusively for a single organization.
Private cloud addresses security concerns and regulatory issues
Private cloud is preferred by organizations that want distinct and secure cloud services for them to operate. Security issues associated with the client computing are addressed through secure access virtual private networks (or VPN) or by the physical location within the organization’s firewall system. Downtime in terms of internet availability, quality, and performance are considered for mission critical applications. As a result, in these kind of cases, on premise private cloud seems the ideal solution. In the healthcare and pharmaceutical industries, data or applications are required to conform to various regulatory standards. In those cases, transfer of data to the cloud would mean a violation of norms. A private cloud is preferred in those cases because businesses can then install their own server and storage hardware, but have the flexibility to shift workloads among servers as usage increases or they deploy new applications. They’re effectively “stand-alone” solutions that involve significant investment. Private cloud doesn’t deliver the short-term economies that public cloud does.