90% Of Businesses To Utilize The Private Cloud Network In The Next Decade

Andre Smith

Public clouds (e.g., Google Cloud, Amazon Cloud Drive) are financially efficient, easy to manage, pay-as-you-go cloud services available to all members of the public, either for free or for a small monthly cost. The public cloud has given individuals and businesses, big and small, resources for storing and sharing data.

PMC Telecom, trading since 1991, has noticed considerable demand for cloud-based services. Luke Cropper, head of hosted, says PMC Telecom’s customers have always required phone systems; but they are no longer happy with simple plug-and-play handsets. They want services available only through cloud-based services, such as the freedom to use any device to answer a call. New technology such as hosted VoIP enables customers to advance their telecom solutions in a way that traditional systems cannot rival.

The public cloud has paved the way for the future of telecommunications and data technology and has the benefit of being available to multiple businesses and members of the public, but it’s limited by being a one-size-fits-all model. As the cloud-based technology hype dies down and it is no longer seen as an exciting, innovative novelty, businesses are beginning to request more to suit the needs of their specific company.

The private cloud – much like the public cloud – offers numerous benefits, including scalability, flexibility, and security, with the added bonus of being solely dedicated to one specific company or business. This means that companies can take full advantage of a tailor-made cloud service.

Businesses can gain by utilizing the private cloud network through faster ROI, offsite backup, complete mobility, and higher data security.

A global survey conducted by cloud solutions provider QualiSystems revealed that 30% of workplace cloud data usage is managed through private cloud systems, with a further 10% predicted to switch from public to private in the next year.

The initial cost of using a private cloud network is higher than that of its public counterpart. However companies can save up to 50% on long-term costs by opting to go private, with operating expenses often significantly lower than public cloud costs (as seen in this case study in the International Journal of Computer Science & Information Technology).

The capital expenditure on switching to a private cloud service is high compared to the initial switch to public cloud, which is often free of charge. However, as the case study above shows, the operating expenses of a private cloud network over a three-year period are nearly a quarter of the costs of public cloud operating expenses, bringing the three-year total cost of using the private cloud to almost half of the cost of using the public cloud.

Cost is a huge influence when it comes to decision making for big businesses, however the leading drawback of using a public cloud service is the security risk potential that comes with a shared environment. Logically, a private network is far more security efficient that a shared public one. Therefore, more big businesses with sensitive data are making the switch to private in order to tighten security of their data.

The requirements of the ever-growing development and operations field are becoming greater all the time, with cloud providers struggling to keep up. The QualiSystems survey revealed that cloud service providers don’t have the ability to meet the demand of IaaS (infrastructure as a service) within an efficient timescale.

Seventy-five percent of those questioned fail to deliver IaaS within the same day that it is required; with the majority of companies needing almost a week to meet the requirements of their users.

Over 90% of businesses now use a type of cloud-based service for their company needs, an impressive statistic considering that the cloud only really became popular in 2002 thanks to Amazon Web Services and furthered by Amazon Elastic Compute Cloud in 2006. Its popularity is unsurprising since the technology comes with so many benefits that companies would be foolish not to adapt their systems to maximize business potential. The private cloud is simply the new wave of technology that is heavily weighted with numerous benefits.

From this, its predictable that (just like with the first generation of cloud-based services), 90% of businesses will be utilizing a private cloud network in the next decade.

IoT and Industry 4.0 may have more impact on the future of your business than anything else on earth. Learn what the experts this means for business in Myth-Busting: The Networked Economy.


About Andre Smith

Andre Smith is an Internet, marketing, and e-commerce specialist with several years of experience in the industry. He has watched as the world of online business has grown and adapted to new technologies, and he has made it his mission to help keep businesses informed and up to date.