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Survey: private cloud the choice of two out of five organizations

By | November 29, 2010, 3:51pm PST

Summary: A survey of 267 Oracle shops finds private cloud is already a working reality.

Many in the industry don’t recognize the concept of “private cloud,” saying that it fails to meet the true definition of cloud, being a collection of resources across the Web. However, it looks like many companies are forging ahead with their own implementations of cloud for the benefit of employees and business partners.

In my work with Unisphere Research/Information Today Inc., I had the opportunity to survey 267 members of the the Independent Oracle Users Group (IOUG), on their adoption of cloud computing, and found a groundswell of interest in the private cloud concept.

For purposes of this survey, underwritten by Oracle, we defined “private clouds” as virtualized IT resources, controlled and owned by the organization, providing on-demand shared services to end users within or affiliated with the organization. By contrast, for purposes of this study, public clouds are services offered to any and all users on a commercial, pay-per-use basis by a third party.

The survey find that 29% of organizations report they already have deployed an internal cloud, with another 15% piloting, planning or considering private clouds. Even the private cloud pilots must have serious traction, as a total of 37% of respondents indicate that some piece of their organization’s workload processing or infrastructure is now available through private cloud services.

In the process, many companies also are becoming cloud suppliers in their own right. Along with IT-enabled services made available to parts of the organization, more than a third also extend these services to their external networks of customers and partners. Nine percent, in fact, say that a sizeable segment of their IT services are now also available to users outside their firewalls.

My conclusion is that we expect the trend to private cloud to continue intensifying. Users who are relatively mature in their use of private cloud and who have invested more significantly are reaping cost savings by eliminating duplication, standardizing for operational efficiency and through higher asset utilization.

I will provide additional background to the survey findings in detail via a Webcast in conjunction with Rex Wang, vice president, Oracle Product Marketing, on December 2, 2010 at 12:00 noon EST. Check out the Webcast at http://www.oracle.com/goto/iougcloudsurvey

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Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

  • CBS Interactive/CNET/ZDNet (this blog)
  • ebizQ
  • Evans Data
  • Gartner
  • IBM
  • Informatica
  • IDC
  • Microsoft
  • Systinet/HP
  • Teradata
  • Unisphere Reseach, a division of Information Today, Inc.
  • WebLayers

Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

  • IBM
  • Luminex
  • Noetix
  • Oracle Corp.
  • Teradata
  • Informatica
  • International Oracle Users Group
  • Oracle Applications Users Group
  • Professional Association for SQL Server
  • International DB2 Users Group
  • International Sybase Users Group
  • SHARE (IBM large systems users group)

Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts, and serves on the program committee for this year's SOA & Cloud Symposium in London. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

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Still trying the sell the BS called cloud??
wackoae 29th Nov 2010
Private clouds are NOTHING MORE THAN SERVERS. Same thing corporations are using today. Giving it a new name is not going to change the way it works.

"The cloud" (original BS) is a total failure today because it is unreliable (see down times for Amazon & MS systems) and above all ... completely INSECURE.

Nobody with a brain would ever buy into "the cloud".
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Private clouds are NOTHING MORE THAN SERVERS. Same thing corporations are using today. Giving it a new name is not going to change the way it works.

"The cloud" (original BS) is a total failure today because it is unreliable (see down times for Amazon & MS systems) and above all ... completely INSECURE.

Nobody with a brain would ever buy into "the cloud".

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