Enterprises to adopt private clouds

Companies should decide on their cloud strategies now

Organisations can achieve significant efficiencies by adopting the cloud computing model, according to a report from consulting company BroadGroup.

Enterprise adoption of private clouds is increasing and will accelerate over the coming years, the firm said, adding that most companies will benefit from a hybrid cloud approach.

The Competing in the Clouds report said that private clouds will prove most popular with enterprises, but that companies choosing this route will face deep rooted problems because it involves "very different business and operational models".

BroadGroup believes that most firms will therefore turn to datacentre providers as they make their first tentative steps.

"The signs are that a complex and interesting market structure will evolve over time," said Marion Howard Healy, report author and a senior consultant at BroadGroup.

"A significantly higher proportion of enterprise datacentre space will be outsourced by 2015. In our view this could be as much as 35 per cent."

BroadGroup expects to see an increased use of hybrid clouds by that time, and said that just 10 per cent of applications will remain in private clouds by 2020.

However, the report added that these will be a company's most critical applications, and that only non-critical applications will be provisioned by public cloud services or virtual private clouds.