Local or Hosted? Weighing Your Options for the Private Cloud

Grazed from ITBusinessEdge. Author: Arthur Cole.

The grass is always greener on the other side of the fence, and judging by the continued interest in private cloud solutions, it is fair to say that the sky is always bluer on the other side of the cloud, as well. Cloud providers have made no secret of the fact that they can deliver advanced IT services at a fraction of the cost of in-house infrastructure, but for organizations that have invested millions, if not billions, in their own data centers, it isn’t just a simple matter of dumping the old for the new. Rather, many CIOs are asking themselves: If a third-party provider can deliver IT more cheaply and effectively, why can’t I?

This is one of the reasons why private cloud adoption is about to undergo a dramatic shift over the next year or so, says Technology Business Report. According to the company’s latest research, the percentage of private clouds delivered by third parties is showing a steady decline – from 70 percent to 65 percent in the past year – while in-house clouds are on the rise – 30 percent to 35 percent…

At the same time, however, the group notes that while the private cloud market is due to grow by about 15 percent per year through 2018, spending at individual organizations is on the decline due to the low cost of open, public cloud services…

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