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Private cloud enterprise adoption set to boost data center outsourcing


The consulting firm BroadGroup has recently released a new report that reveals how Private Cloud enterprise adoption will accelerate over the next five years, and how it will boost the opportunity for third party data center outsourcing. However, the report also reveals that hybrid cloud is seen as the next major opportunity where efficiencies can be gained by using public cloud for non-critical applications.

The data center report, Competing in the clouds: emerging strategies for enterprise data centres, demonstrates that Private Cloud will be the fastest growing segment in the enterprise market. However, migrating to cloud services represents a new way of operating, and will require a change in mindset by enterprise IT leaders because ‘IT as a Service’ introduces very different business and operational models.

According to the report, in the short term, most companies will be able to cope with growing data demands using their existing infrastructure. However as enterprises are confronted by the priority to upgrade or migrate to Private Cloud to secure greater business agility plus continued strong growth in data volumes will mean that data centers will be the principal beneficiary of the migration, with space doubling from its current level over the next five years.

Marion Howard Healy, the report author and a Senior Consultant at BroadGroup commented, “The signs are that a complex and interesting market structure will evolve over time. A significantly higher proportion of enterprise data center space will be outsourced by 2015. In our view this could be as much as 35 percent by 2015.”

BroadGroup believes that Hybrid clouds will evolve as the next big opportunity and that by 2020, for the majority of enterprises, as little as 10 percent of applications will remain in private clouds. These applications will be core or critical to the business. Non-critical applications will be provisioned via public cloud computing services or via virtual private clouds on public service infrastructures. There will be exceptions particularly in finance and central government sectors.

The recent data center report is the most comprehensive assessment yet of how Private Cloud will interact with enterprises and data center outsourcing. Due to cloud market development being “kaleidoscopic” there is much in play, and much to play for in short and medium term investment and IT decisions.

For further information about the Competing in the clouds: emerging strategies for enterprise data centres report and to purchased a copy, visit


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