A few years ago, private clouds were just starting to be deployed. Now, private clouds are almost the norm in cloud computing. A recent Gartner report stated that nearly half of large corporations have latched onto a private cloud service provider.
Private cloud adoption has been steadily rising with most large corporations having or planning a private cloud service by 2014. Only 11 percent stated that they have no plans to adopt a private cloud service. Businesses now need to realize that there are more benefits to the cloud than just cost effectiveness.
"Virtualization reduces capital expenses, and standards and automation reduce operational expenses," said Gartner analyst Thomas Bittman. "But taking the next step of adding usage metrics, self-service offerings and automated provisioning requires investment in technologies. With this in mind, the driving factor for going that next step should primarily be agility."
Businesses must choose enterprise cloud providers based on two criteria: Either the provider gives them the ability to expand when needed or there is a rapid return on investment, such as within two years, with the ability to scale up or down as needed in the future.
However, there are roadblocks to private cloud adoption. CIO Australia laid out a couple of potential problem areas for businesses to adopt this technology.
For one, the technology surrounding the cloud is still lagging a bit behind where companies are expecting it to be.
"Technologies to deliver private cloud are relatively immature and evolving, and many enterprises find that custom work is required to meet their needs," Bittman said, according to CIO Australia. "Cloud services require operational processes that are designed for speed and customized for the services offered."
Also, companies are forgetting change management when switching to the cloud, worrying more about the technical processes, which don't always work.
Even with these road blocks, the private cloud continues to be "the next big thing," according to Bittman.