Battle in the Cloud: Could This Be the Year the Cloud Market Changes?

By: Katie Daggett| - Leave a comment

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In the battle between the public and private cloud market, the public cloud has had the upper hand in recent years. This may be due to the fact that private clouds are dedicated to a single company and therefore have not received the same level of investment as the public cloud. Further, many organizations are unsure whether a public or private cloud solution is best for their needs.

However, there have been signs recently that the tide may be turning in favor of the hybrid cloud, which is a strategic blend of both private and public cloud services. In fact, experts predict 80 percent of all enterprise IT organizations will commit to hybrid cloud architectures by 2017 as they blend their legacy systems with cloud-based environments.

What’s Behind the Shift in the Cloud Market?

The desire for greater control, security and privacy have led many companies — especially those in the financial services industry — to look to the private cloud. Because banks and insurance firms often run data-intensive and heavily customized legacy applications, public cloud applications are out of the question. Organizations looking for greater security have also favored the private cloud, since their applications are dedicated to a single organization when in the private cloud and cannot be accessed by other clients. Compliance with the Sarbanes-Oxley Act, the Payment Card Industry Data Security Standard and the Health Insurance Portability and Accountability Act are also concerns that put the public cloud out of the running for many companies.

There are also functional benefits to hybrid cloud deployments. According to Forbes, the hybrid cloud is rising in popularity because it lets organizations pick and choose the best elements of both types of the cloud, evolve existing IT assets while selectively using other forms of the cloud and achieve greater flexibility and rapid business innovation.

New Market Offerings Make the Hybrid Cloud More Feasible

Several new market offerings, such as those outlined by Datamation, have also contributed to the recent growth of private and hybrid cloud services. These offerings include the following:

  • Better infrastructure, architecture and tools can now support the use of private or hybrid cloud services.
  • Cloud-native technologies have become more available and affordable options when compared to virtual machines.
  • Containerization and orchestration have made it faster and easier for companies to maneuver services between the public and private clouds.
  • As cloud services become more comprehensive, more companies are turning to resellers and service providers to purchase their IT services.
  • As industrial Internet of Things applications grow, the associated connection, data collection and processing will likely happen in a hybrid cloud environment because of the perceived benefits of the private cloud, such as security and privacy.
  • The high volume of data used in analytics is well-suited to the cloud’s scalability and elasticity, and for companies utilizing highly sensitive data, this will necessitate some form of private cloud solution.

As more organizations start considering the advantages of the private or hybrid cloud, deployments of these cloud options will increase. The next important question then becomes how enterprises can use these applications to successfully accelerate their digital transformation.

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About The Author

Katie Daggett

Freelance Writer

Katie Daggett is owner and chief content strategist of KD Copy & Content. She is an agency-caliber copywriter with more than 15 years' experience in marketing communications and specializes in creating exceptional B2B and B2C marketing content. Katie has worked with clients big and small in a variety of industries, writing everything from direct mail pieces to television ad campaigns. She's learned what it takes to write an effective headline or email subject line, how to engage readers emotionally so that they keep reading and encourage them to take the next step with a strong call to action. Today, Katie specializes in writing SEO website copy and online marketing content directly for client companies. She is passionate about helping B2B and B2C marketers create content that generates more leads and convert those leads into sales.

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