Growth in hosted private cloud services (HPC) is expected to skyrocket to more than $24 billion worldwide over the next three years, according to new research by International Data Corp. (IDC). Businesses and IT providers will further embrace the cloud model because it allows them to deploy infrastructure services in a more efficient and scalable manner. As a result, HPC spending will experience a compound annual growth rate of more than 50 percent by 2016, the IDC researchers say.
Hosted private cloud, which aims to serve as the backbone of a new set of infrastructure services, combines two deployment models: Dedicated Private Cloud and Virtual Private Cloud. A Dedicated Private Cloud offers 1:1 physical compute and storage resources focused on the needs of a single business or extended enterprise. By contrast, Virtual Private Cloud shares virtualized resources in an adjunct of public cloud services.
“IDC anticipates that virtual private cloud will be the predominant operational model for companies wanting to take advantage of the speed and lower capital costs associated with cloud computing,” Robert Mahowald, IDC’s Research Vice President, SaaS and Cloud Services. “Cloud service providers will welcome the move away from the expense of dedicated 1:1 physical systems for delivering their business process and datacenter outsourcing and other services.”
Virtual private cloud is expected to make steady gains in part because of its similarity to public cloud, particularly public Infrastructure as a Service (IaaS), which many IT buyers are already using as a cost-saving alternative to replacing aging infrastructure. As more companies evaluate their Platform as a Service (PaaS) and Software as a Service (SaaS) options, the need to centralize the management of all cloud-sourced capabilities will become apparent.
Meanwhile, the majority of dedicated private cloud buyers will be those companies with existing IS outsourcing or hosted infrastructure services contracts. Potential buyers of dedicated private cloud services will place a premium on off-loading the asset management burden and on operational reliability, over and above other cloud features such as scalability, granular billing, and customer self-service.
(For more information, contact: IDC, 508-988-6701, www.idc.com.)
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