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Companies choose private cloud now and later

In general, the emergence of private and public cloud computing is changing how CIOs and other decision-makers look at business operations. While some executives recognize the hosted technology as a way to outsource risk and reduce expenses, others see the services as a way to reinvent the workplace. Because both sides of the discussion are acknowledged, a chasm is beginning to form in the private sector.

This was highlighted in a recent report by InformationWeek, which noted that many organizations are opting for the private cloud to enhance operations and reduce risk. In other cases, however, some executives are choosing to skip over the private cloud and wait until the public model is more mature. While the latter scenario is much less common, it still introduces a new opportunity for business.

Mark Tonsetic, practice manager at CEB, a member-based global advisory organization, told InformationWeek that many corporate IT executives believed they would have a certain percentage of their applications and data in the private cloud by 2015. Now, however, some decision-makers are recognizing the benefits associated with holding off and deploying the cloud in a few years when the technology is more mature and organizations are more confident in using it.

"Cloud often presents itself as not that much of a different way of working than on premises," Tonsetic said, according to InformationWeek. "If it is a change at all, that's often presented as just a change in the technology, which is often seen as at a lower altitude than business process."

Although some decision-makers are holding off on building a private cloud infrastructure, many organizations are moving full-steam ahead to tackle current collaboration, financial and operational issues that need improving, the news source stated. A separate report by Renub Research highlighted this occurrence, noting that the private cloud market is forecast to expand at a compound annual growth rate of more than 21 percent between 2011 and 2015.

In the coming years, the cloud market will continue to evolve and mature. Whether companies opt to leverage the hosted services now or in the next several years is irrelevant, as doing so will soon be the norm. By planning ahead and working with a trusted service provider, organizations of all sizes can leverage the cloud to alleviate problems associated with using outdated infrastructure technologies.

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