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Falling deployment costs prompt enterprise interest in private cloud, claims Verizon

Latest state of the cloud market report by Verizon suggests enterprises want to do more in the private cloud, as skills and cost barriers to entry fall

Enterprises are increasingly looking to do more with private cloud as the cost and skills barriers to using it continue to lower, Verizon’s third annual cloud use report suggests.

The company’s State of the Market: Enterprise Cloud 2016 report suggests enterprises are becoming more open to moving “highly sensitive” workloads to the private cloud, rather than have them remain on-premise, because it is now more viable to do so.

“In the past, the approach taken by many companies roughly followed a similar model: Public for non-sensitive workloads; private cloud for more sensitive stuff; and traditional on-premises for difficult-to-move and highly sensitive workloads,” the report states.

The latter workloads include items that for performance, security or refactoring reasons would prove difficult to shift off-premise, but the falling cost of using private cloud is reportedly making it easier to do.

The report claimed enterprises are now looking to wind down their reliance on public cloud, predicting it will only be used in future for a narrower list of use cases.

“There will always be a place for public cloud, especially for workloads that need lots of elasticity – but perhaps not so much in the way of risk management and governance,” the report continued.

“Many websites (but not e-commerce) and testing projects would fall into this category.”

The contents of the Verizon report is based on anonymised customer usage data, as well as analyst reports from Forrester and Gartner.

Even so, its findings could be considered at odds with some of the predictions made elsewhere about how enterprises will move to adopt cloud technologies in the coming years.

Hybrid cloud claims

For example, the analyst community tends to be of the view that most enterprise will want to operate a hybrid cloud set-up, featuring a mix of on-premise, private cloud and public cloud technologies.

The report contradicted Gartner’s prediction earlier in 2015 that hybrid cloud is still around two to five years away from becoming a mainstream method of IT consumption.

Read more about cloud adoption trends

Instead, it claimed the hybrid cloud model has already achieve this status in the enterprise, citing data of its own that suggested 50% of firms already use hybrid cloud or have the ability to shift workloads between different clouds.

“There are already services that enable companies to create a sophisticated environment made up of multiple clouds from multiple providers, but make it look like a seamless part of the enterprise infrastructure,” the report asserted.

“Many companies still rely on core systems built on legacy technologies that can’t be moved to the cloud and which they aren’t ready to refactor or replace.

“This can hold back transformation efforts like improving the customer experience. With hybrid IT, these systems could be physically coloated in the same place as a private cloud, creating a reliable, high-performance solution.”

Read more on Infrastructure-as-a-Service (IaaS)