Generic offerings, specialized needs, desire to own one’s destiny are shifting IT away from third-party private clouds.
The report indicates that 65 percent of private clouds were delivered by third parties in the second half of 2014. The proportion of third-party private clouds was 70 percent in the first half of 2014, as well as in 2013.
There are a few reasons for this shift:
- The third-party private cloud technology providers are merely selling software (sometimes in the form of appliances) and are not doing a great job of providing technology that’s more compelling than IT’s offerings.
- Private clouds based on open standards (such as OpenStack) are typically adopted by more-innovative companies, which have very capable developers and implementers. They jump to standard code distros rather than go through a third-party distro provider.
- There are specialized requirements for a private cloud, such as high-speed database performance for analytics, high usage by devices, and enhanced security. IT typically can’t find an exact fit for those needs from a third-party provider, so IT builds it.
- The enterprise believes its private cloud is strategic to its business, and in turn, management believes the enterprise needs to own it and completely control it. Lately, I’ve run into a lot of this thinking at enterprises.
Although the shift from 30 percent DIY private clouds to 35 percent seems small, I suspect it’s a real trend in response to current realities in the marketplace. I am hard-pressed to justify an enterprise getting into the private cloud development business, but it seems that many are forging ahead in that direction.