One of the biggest misconceptions by IT organizations is that the cloud will save money. It can, but it does not inherently do so. Automation technology, an important part of a private cloud network, can be a significant investment for many IT organizations. The result can be the ability to reallocate resources more efficiently, and it may allow some organizations to reduce their overall capital expenditures for new hardware, which can save money. But Gartner says the primary driving benefit of adopting a cloud model should not be a cost savings, instead it's around increased agility and dynamic scalability, which can improve speed to market.
Private cloud is not always on-premise
Many people associate private cloud with being in an organization's data center, whereas public cloud is from a third-party service provider. Many vendors will sell off-premise private clouds though, meaning the resources are dedicated to a single customer, with no multi-tenant, shared pooling of resources among various customers. "Private cloud computing is defined by privacy, not location, ownership or management responsibility," Bittman says. Be careful of various security definitions from providers though. Some vendors may, for example, outsource their data center operations to a collocation facility, or could pool resources among customers but separate them using VPNs. Investigate the details of your off-premise cloud offering, he advises.
Private cloud isn't just in the infrastructure layer
Private cloud computing is often thought of as virtual infrastructure services. There are other private cloud deployments though, particularly on the software and platform layers and increasingly in many other forms. Bittman says the IaaS layer is the fastest growing segment of cloud, but it is not necessarily the most important.
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