Importance of Private Clouds

First a quick primer on private vs. public clouds… Private clouds are, in many aspects, similar to their public big brothers. However, a private cloud is essentially a pooling of resources within an organization. The limit to the economies of scale is limited to the size of the organization. But it is owned and operated locally.

Private clouds provide benefits to the cloud computing movement. First, they provide organizations the ability to get familiar with cloud computing concepts. This is important both technically and organizationally. Second, private clouds provide a migration path to public clouds. Private clouds provide a potential stepping-stone moving from a traditional infrastructure to a public cloud infrastructure. Movement to private clouds also provides the potential for better utilization of internal resources…therefore increasing efficiency.

Not everyone is ready to support private clouds. Microsoft stated that their Azure offering would not be available to run locally.

http://blogs.zdnet.com/microsoft/?p=2340

It is possible that Microsoft is simply focused on the public offering for now and will return to a private offering at a later date. However, it could also be a ploy to force Microsoft customers to move directly from traditional infrastructure straight to a public cloud infrastructure.

Financially, moving from traditional infrastructure to private clouds provides better efficiency of capital investments. Moving further from private clouds (or traditional infrastructure) to public clouds provides a move from CapEx spending to OpEx spending. To many companies, this provides greater financial flexibility in times when capital is tough to come by.

Tim Crawford is ranked as one of the Top 100 Most Influential Chief Information Technology Officers (#4), Top 100 Most Social CIOs (#7), Top 20 People Most Retweeted by IT Leaders (#5) and Top 100 Cloud Experts and Influencers. Tim is a strategic CIO & advisor that works with large global enterprise organizations across a number of industries including financial services, healthcare, major airlines and high-tech. Tim’s work differentiates and catapults organizations in transformative ways through the use of technology as a strategic lever. Tim takes a provocative, but pragmatic approach to the intersection of business and technology. Tim is an internationally renowned CIO thought leader including Digital Transformation, Cloud Computing, Data Analytics and Internet of Things (IoT). Tim has served as CIO and other senior IT roles with global organizations such as Konica Minolta/ All Covered, Stanford University, Knight-Ridder, Philips Electronics and National Semiconductor. Tim is also the host of the CIO In The Know (CIOitk) podcast. CIOitk is a weekly podcast that interviews CIOs on the top issues facing CIOs today. Tim holds an MBA in International Business with Honors from Golden Gate University Ageno School of Business and a Bachelor of Science degree in Computer Information Systems from Golden Gate University.

2 comments on “Importance of Private Clouds

  1. Pingback: Think you are ready to build a cloud? Think again. — Gigaom Research

  2. Pingback: Think you are ready to build a cloud? Think again. | AVOA

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