As outlined in the previous article, the private cloud experience doesn\'t seem to be as positive as the public cloud experience. Even so, many organizations choose it despite the costs involved in investing in technology and the problems inherent in this model, mainly because of a matter of security and confidentiality.
Well over three-quarters (83%) of companies are handling their local implementation as a fixed capital investment, which means that the company must plan and purchase sufficient capacity in advance in order to maintain service levels during periods of peak demand, but not overdo it to avoid paying for servers that remain unused.
Apparently, few decision makers have achieved this balance: many are squandering 40-50% of their server capacity, probably because they must have available capacity if needed. When you consider that 92% of our respondents have to wait more than a month for new capacity, it becomes clear why companies prefer to go over insurance and over-buy. Just over two-fifths (41%) must wait three or more months; this is a significant problem because, if new projects or applications are to be launched, a delay of three months could have a serious impact in terms of an early marketing advantage.
Managing local expertise can be another challenge: 68% of companies found that the overall management costs of their local environment were higher than expected. The IT department must install and manage the experience, including hardware replacements, monitoring, patches, upgrades, and capacity management. In the public cloud, all these aspects are managed by the provider; in the private cloud, the IT department is fully responsible. To meet internal service-level agreements for availability and performance, IT needs people, processes, and tools, something that can divert resources from adding value to simply "being alert."
On-demand scalability drives business value
When we asked companies about the challenges, many of their problems arose as a result of poor scalability: 80% complained that provisioning times were slow, 70% said capacity utilization and planning were real headaches, and 67% said that supporting fluctuating capacity demands was affecting cash flow management and infrastructure.
However, pressure to protect sensitive data also appeared at the top of the list, to respect compliance requirements and reduce the business risk associated with violating user policies. IT managers seem to be between a rock and a hard place: they are under pressure to enable flexibility, scalability, and agility to improve provisioning times, performance, and innovation, but they are also responsible for protecting and ensuring data security. The public cloud can offer the former, while the private cloud may be the best option for providing the latter... but companies demand both.
In an ideal world, companies want to be able to choose their preferred location for each workload and consume resources in the way that suits them best. They want to be able to expand and reduce capacity, while continuing to address the specific needs of each workload for security, compliance, and performance. This freedom means that you can choose the most cost-appropriate location for the specific needs of the workload. Hybrid cloud is the first step, but this simply enables a location option.
The next step in the cloud is to enable companies to choose a location and consume services in a way that offers the best overall profitability. Much of this profitability comes from on-demand scalability, which the public cloud has in abundance, but is a traditional stumbling block with a private cloud. One solution is on-premises private cloud and pay-as-you-go deployments that offer the best of both worlds: they enable scalability and agility through on-demand pricing, but provide assurances to companies through location choice and control of the entire stack. When used in combination with a public cloud, companies access an on-demand hybrid cloud, which allows them to choose the right location for the task, with the ability to scale on demand when needed.
That\'s why most companies today are adopting a hybrid strategy, mixing and combining public and local locations based on the requirements of each workload. Our predictions point to the adoption of both technologies, private and public cloud, will increase: the market is not an all-or-nothing game, where one is positioned to triumph over the other.