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    Private cloud investment will outdo public, says Gartner

A report published by Gartner claims that businesses are more likely to invest into the private cloud up until 2012 than go for public services.

By Jennifer Scott, 1 Oct 2009 at 13:01

Cloud computing

More investment will be put into private cloud services than external cloud providers, Gartner claimed today.

In a report, the analyst firm said that although it sees a future for the external cloud, private cloud offerings will work as the main stepping stone and encourage the most investment till 2012.

Phil Dawson, research vice president at Gartner, said in a statement: “For now, private cloud computing will not just be a viable term, it will be a significant strategic investment for most large organisations.”

He added: “We predict that through 2012, more than 75 per cent of organisation’s use of cloud computing will be devoted to very large data queries, short-term massively parallel workloads, or IT use by start-ups with little to no IT infrastructure.”

Looking further into the future, Dawson predicts that organisations will work with a combination of both rather than one or the other.

“Larger organisations will continue to have an IT organisation that manages and deploys IT resources internally. Some of these will be “private clouds”, but not all,” he continued.

“IT departments 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,” Dawson added.

Two factors must be examined before investing in private cloud rather than public, according to the report.

Firstly, private services are deployed for approved members only, making access for the general public or businesses difficult. Secondly, they can be built on top of a public cloud infrastructure or in a hybrid model.

The report concluded that “although some IT services are destined for the cloud computing delivery, others are destined for more integration and intimacy with the business.”

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1 comments

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Consistent Findings

Gartner’s findings echo our recent research carried out at this year’s ISC’09 conference which showed over a quarter of IT execs plan to introduce private clouds in 2009. However, what Gartner and Phil Dawson have not mentioned is that before enterprises can make the transition towards large scale adoption of cloud a number of hurdles need to be overcome. Our research found 76% of IT executives felt business decision makers do not realise the potential cost and efficiency savings that cloud can bring. In addition, over one third (37%) of respondents said organizational culture was the biggest barrier to establishing a private cloud. These findings show we’ve still got some way to go before cloud really takes off but also highlights the important role IT teams have to play in educating business leaders.

By nwerstiuk on Monday Oct 5

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