The private cloud boom

According to a new report from IDC, server hardware revenues for public cloud computing are expected to grow from $582 million in 2009 to $718 million in 2014 thanks to the rising popularity of this new IT delivery model. These are encouraging figures, especially for cloud service providers.

Yet despite this, the report reveals it is private cloud that will see the greatest growth rate. According to the analyst firm, the private cloud market is expected to rise from $2.6 billion this year to $5.7 billion by 2014. For many enterprises, it would seem, when it comes to cloud the private route is still very much front of mind.

This finding reflects what we discovered at the International Supercomputing Conference (ISC) earlier this year. Our second annual delegate survey found demand for private clouds remains undiminished with 28 per cent of those surveyed planning a private cloud deployment in 2010. Efficiency, cost cutting and experimenting with cloud were all cited as reasons for getting involved with private cloud, highlighting how most are now aware of the full range of benefits cloud offers.

IDC agrees but points out concerns regarding availability, security and costs remain for organisations looking to explore the benefits of cloud computing. For the time being, therefore, expect to see the focus on private cloud given the balance it allows organisations to strike in terms of flexibility and security.