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9 Reasons To Go Private Cloud

        posted by , December 19, 2012

The question I seem to be getting over and over is…

Do we need a private cloud?

The answer is simple — in the future large sophisticated organizations will own clouds, small businesses won't.

Okay, that may be a bit vague.

Some organizations aren't out to take over the world. The craftsman who only accepts a limited number of customers despite high demand. The winery that's kept the same rate of production for 200 years. These businesses don't need a private cloud.

If you're hoping to dominate an industry private cloud (or more likely hybrid) may be in your future.

There are 9 reasons to go private cloud:

1. You have data privacy requirements

If you want to keep data secret, private cloud is your friend.

Public cloud exposes your data to a whole new world of third parties. Data encryption in transit and storage addresses most data privacy concerns. However, many organizations still prefer to control physical possession of critical data.

2. You have unique security requirements

Most public cloud providers maintain reasonable levels of information security risk management. Public cloud integration can be secured.

If you have unusual security requirements or want to control your own security risk management — private cloud is your best bet.

3. You have geographical requirements

Major public cloud providers are focused on large markets such as the United States. If you have global operations and need to locate your infrastructure and data in particular countries private cloud is often the way to go.

4. You have vendor lock-in concerns

It's not unusual for SaaS customers to complain that vendors hold all the cards when it comes to contract re-negotiation.

5. Public cloud services that have unacceptable legal terms

Organizations that are accustomed to managing their own IT services may find the legal terms of major cloud service providers to be unacceptable.

6. You view IT as a core business competency

Not to sound cliché but whatever your business you're in — IT is your business. There are exceptions but they're rare.

You can hardly hope to build competitive advantage in IT by purchasing public cloud services that any one off the street can buy.

That being said ...

There's a good argument that computing is a commodity at the infrastructure or platform level. There's also a good argument that common software is a commodity.

If you view a particular IT capability as a competitive advantage — private cloud may be a means of protecting and enhancing that advantage.

7. You have unique performance requirements

If you have performance requirements such as low latency, private cloud may be your only cloud choice.

That's not to say that high performance (e.g. low latency) public cloud solutions don't exist. However, they might not match your particular requirements.

8. You have unique service management requirements

Some cloud services may implement best practices such as ITIL. However, it can be challenging for an organization to implement uniform service management best practices across a variety of public cloud services.

9. Compliance requirements

Dominant cloud providers may not meet the compliance requirements for every jurisdiction. For example, compliance may require data to be physically located in a particular country.

This is the 7th in a 12-part series of posts called How to Win at Cloud.

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