I'm a bit confused. In the article, the private cloud was 'discredited.' Also in the article - we should 'harness and manage both private and public cloud resources within a hybrid environment that leverages the best strengths of both.'
I agree with the second statement much more than the first. My ERP software company offers both private and public deployments. A private cloud involving outsourced IT/datacenters/server management can deliver economies of scale and significant price benefits. There are two reasons for this. First, with ERP there is significant installation and switching costs, so public cloud providers tend to raise prices when it's time to re-enroll. Secondly, the highly competitive hosting business provides cloud resources at a much lower cost than software companies turned hosting providers that run their own cloud.
I could agree that running a private cloud on-premise may not make much sense ... but there are pelnty of exceptions. For example, a restaurant or a retail company would not want to rely on an Internet connection to create receipts and bills for on-premise customers. Other exceptions involve some government applications, bandwidth intensive applications, and business operations that depend on access to a database.
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