Why SMBs love the private cloud

March 22nd, 2013 by - 3,811 views

The emergence of cloud computing has forever changed IT, allowing decision-makers to have more control over their infrastructure than ever before. In the past, teams had to wait weeks for a new application to be developed, tested and launched throughout the company. This delay meant mission-critical tasks may not be completed in time and executives were forced to pay out of pocket for projects that didn’t meet deadlines.

Fortunately, the private cloud has changed all of that by giving internal IT departments more robust administrative capabilities and the ability to perform critical tasks more efficiently without interruption. Today, end users are given the power to manage applications moving between servers without those solutions being impaired or experiencing a decrease in performance, according to a report by the Aberdeen Group.

Why SMBs love the private cloud

Why SMBs love the private cloud

Analysts said this ability to reduce the complexities associated with traditionally challenging tasks has made it easier for firms to compete, reduce costs and meet short- and long-term demands. For this reason, organizations of all sizes are making the migration to the cloud to experience a wide variety of benefits and introduce new growth opportunities.

The current private cloud landscape
The Aberdeen Group said more organizations than ever before have implemented cloud servers and server virtualization. Although only about 40 percent of applications were implemented on virtual servers in 2010, approximately 55 percent were in 2012. In many cases, small and medium-sized businesses (SMBs) are deploying the cloud more than larger enterprises because the hosted technology gives the former group the unique ability to gain a competitive advantage over rival firms that have more exhaustible resources.

A separate report by IDC noted that spending on global private cloud computing services will increase at a compound annual growth rate of more than 50 percent between 2012 and 2016, eventually exceeding $24 billion. Organizations are deploying the private cloud to have more choices with access control and resource allocation.

“IDC anticipates that virtual private cloud will be the predominant operational model for companies wanting to take advantage of the speed and lower capital costs associated with cloud computing, while cloud service providers will welcome the move away from the expense of dedicated 1:1 physical systems for delivering their business process and data center outsourcing and other services,” said Robert Mahowald, research vice president of Software as a Service and cloud services at IDC.

Benefiting from the private cloud
Although companies of all sizes can experience the benefits of the private cloud, medium-sized organizations often report the most advantages. The Aberdeen Group noted that roughly 88 percent of midsize firms reduced the number of physical servers in their possession after adopting the cloud, while 52 percent said they could upgrade and install applications much faster in the cloud than their traditional IT environment.

The report went on to say that approximately 48 percent of midsize organizations reduced downtime and IT expenses after migrating to the cloud.

The private cloud also introduces a number of innovative management software, which provides IT departments with better control over security, support and application downtime, the Aberdeen Group noted. When decision-makers use these tools effectively, they will be able to ensure their company is experiences the maximum benefits associated with using the cloud.

In the coming years, the private cloud market will only expand due to an ongoing demand to leverage the hosted services to improve operations and reduce challenges. By working with a trusted service provider and using innovative management tools, companies can be sure they are using the best cloud offerings available.

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