Enterprises open to private Cloud deployment as hybrid transition heightens

“The private Cloud market is unique..."

Even the largest enterprises, such as those with stringent governance policies, appear likely to adopt private Cloud solutions as the first step to transitioning from traditional to truly hybrid IT environments.

The knock-on effect according to Technology Business Research is the increased total market opportunity, which is forecast to reach an estimated $US44 billion by 2020.

Although small compared to the expansive public cloud market, the hosted private cloud market is growing.

As the market lacks one clear leader, time and space remain for small vendors to catch up to front-runner IBM.

“The private cloud market is unique, with independent software vendors, systems integrators, born-on-the-cloud vendors and hosting companies all investing to gain market share,” says Cassandra Mooshian, Cloud Analyst, TBR.

“The best way to win in this market in 2016 will be to promote relatable success stories and case studies that showcase the added efficiencies and cost savings associated with hosted cloud environments as well as the security benefits of deploying workloads in hosted private cloud environments.”

TBR’s 2H15 Private Cloud Customer Research, which highlights hosted private cloud and self-built private cloud adoption, found 71 per cent of private Cloud users view private cloud as superior to public Cloud based on security.

A shift in customers’ investments over the past six months from development (PaaS) to production (IaaS and SaaS), noticeably impacted the market; although, IaaS remains the largest segment in the private Cloud market as enterprise value dedicated cloud instances.

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