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Private cloud spending set for impressive growth

Simon Quicke

With the cost savings and flexibility on offer it is understandable that private cloud products and services are set for fairly impressive growth in the next few years.

The consensus in the industry appears to be of a hybrid world, with customers using both private and public clouds, for the foreseeable future with the controllable world behind corporate fences the place nearly all users will start.

IDC, which is taking a look at the private cloud sector for the first time in a forecasting report, has predicted that hardware, software and services along with networking required to support the technology will be a market across Western Europe motoring at an annual growth rate of 23.2% worth $7.9bn by 2016.

Most firms are at an early adoption stage so there is still plenty of investment to be made and there is a growing interest in pre-packaged cloud services to speed up the time it takes to deploy the technology.

There is also a special mention for resellers with a hope that there will be more partnering between those that create and those that sell in a bid to make a potentially complex process "many moving parts" more transparent to the customer.

"The growth of the private cloud is even more impressive in the context of the parlous economic situation," said Mette Ahorlu, research director, IDC European services.

"It's driven by a need for cost savings and efficiency and with a longer perspective of creating increased flexibility, and is across the board - from hardware, to software, to management, networking and services," Ahorlu added.


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