A new report from market research firm Infonetics has found that companies are making room in their budgets for increased cloud spending in the coming year. The survey looked at the budget priorities and network initiatives of more than 200 North American enterprises.
"Clouds have offered freedom never before possible," wrote Pat Patterson in an article for BillingWorld. "There's no need to perform labor-intensive and repetitive tasks … Outsourcing, especially cloud-based outsourcing, now enables IT managers to perform value-added tasks that lead to meaningful business outcomes, in addition to anywhere, anytime, hassle-free collaboration for employees and business partners."
Spending for cloud-based initiatives has increased as enterprises embrace the technology and "as-a-service" models for networking architectures and applications. Infonetics researchers found that, on average, organizations spent more than $1 million on networking equipment in 2013 and plan to increase this year's spending by 19 percent.
"One of the most interesting findings is that cloud has emerged as the number one networking initiative over the next 12 months," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. "Companies are embracing the cloud in a services model as well as building their own cloud-architected data centers, and this means upgrades to network infrastructure."
Benefits of private cloud
As companies increasingly turn to adoption of cloud services, it can be difficult for some to know which platform is the best for their organization. Public and hybrid solutions offer some benefits, but a dedicated enterprise cloud infrastructure combines the best parts of those clouds with increased security and flexibility.
Private cloud services reduce concerns over security by allowing an organization to choose their own security controls, as well as storing enterprise data on a dedicated server. Public clouds store multiple companies' information together in one place, increasing the likelihood of a breach. Businesses employing a private cloud solution are able to choose what level of security is necessary for them and utilize tiered storage to give data an extra level of protection.
Another one of the many private cloud computing benefits is the flexibility it offers, both in scale and network settings. Companies employing a private cloud platform can take advantage of increased scalability, allowing the network capacity to grow along with demand. Private clouds also offer enterprises the ability to completely customize network setting and access controls so the platform perfectly suits the needs of the business.