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Why arent all enterprises building private #clouds? #searchcloudcomputing.com

May 27, 2011

Why aren’t all enterprises building private clouds?

…In part one of this look at private cloud, we examined what it takes to build an in-house cloud service. In part two, we’ll find out why all enterprises aren’t hopping onboard the private cloud bandwagon.

Given the hype and, possibly, executive pressure to implement a private cloud infrastructure, many companies have struggled to justify the massive organizational change and expense. While many IT managers believe that their shops aren’t yet ready, their objections may fall on deaf ears among executives who care only about the bottom line. Still, if you are an IT decision maker, skepticism about cloud computing is not only warranted; it’s essential. The size of your company and other key factors — such as the degree of virtualization in your IT shop — should dictate whether your company is ready for the move….

…According to the Microsoft white paper “The Economics of the Cloud,” for small and medium-sized organizations with fewer than 100 servers, private clouds are prohibitively expensive compared with public cloud services. The only way for these small organizations or departments to share the benefits of at-scale cloud computing is by moving to a public cloud model, the white paper argues. For large organizations with an installed base of approximately 1,000 servers, however, private clouds are feasible. But they still come at a significant cost of about 10 times the price of a public cloud for the same unit of service given the combined effect of scale, demand diversification and multitenancy….

Categories: Virtualisation
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