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