Private cloud service offerings will prevail over the market till public providers mature. Economies of scale will pose no hinderance in the near future for the private providers. Gartner predicts that through 2012, IT organisations will spend more money on private cloud computing investments than on offerings from public cloud providers.

Private cloud computing is a form of ITaaS (Information technology as a Service) in which scalable and elastic IT-enabled capabilities are delivered as a service to internal customers using Internet technologies. Data Security will be the key area over which private cloud will reap benefits.

“The hype of cloud computing is that existing IT architectures and processes can be simply replaced by the cloud,” said Tom Bittman, vice president and distinguished analyst at Gartner. “The reality of the future IT organization, however, is somewhat a combination. Larger enterprises will continue to have an IT organization that manages and deploys IT resources internally, some of which will be ‘private clouds.’ IT organizations will also take on IT service sourcing responsibility, determining when to leverage external providers, when to deploy internally, and when to leverage both for specific services.”

Public cloud resources will use private cloud services as a stepping stone. Over time the hybrid and multilayered private and public cloud resources will evolve. For enterprise organizations, private cloud services will therefore be required for many years, perhaps decades, as public cloud offerings mature.

Gartner analysts say that appropriate investments in private cloud computing will also make it easier for enterprises to move to public cloud services. Services that are destined to be cloud at some point in time,will provoke enterprises to evaluate the ROI from developing private cloud services, while waiting for external offerings to mature.

“Many of the investments in private cloud computing will prepare the enterprise for public cloud computing. These investments are not just technology changes — they are also process, cultural and business interface changes. Making these changes sooner rather than later will help enterprises to take better cloud sourcing decisions and potentially make for an easier transition to public cloud computing,” said Bittman.

According to Gartner, service brokers will play a major role in delivering cloud based services to smaller organizations. Specific skill sets of these brokers will help them monetize their returns as small businesses do not posses the deep skill required to migrate and adhere to the service level requirements.


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