Is hosted private cloud the future of cloud infrastructure?

Every business is different, and their infrastructure is sure to follow suit. However, just as there are standards within best practices for cloud, so too are there consistencies where cloud platforms are concerned.

When we say cloud platforms, however, we don’t mean open or closed clouds, like Rackspace versus AWS. Instead we are referring to public, private and hybrid clouds.

A recent Business Technology Roundtable blog post delved into an IDC study, finding that companies are increasingly leveraging hosted private clouds. IDC points to the hosted private cloud as the new backbone to the infrastructure services,

“…transforming existing provider models for IT outsourcing, hosting infrastructure services, and other key IT industries.”

But what accounts for private cloud’s ascendance? While public cloud will always have a larger audience private clouds get to the heart of what businesses need: dedicated infrastructure that supports the compliance requirements of data.

The truth is that doing business online, whether as an e-commerce company, healthcare organization, financial service institution, or any other company that will manage data of a sensitive nature (PII, ePHI, or anything proprietary) must rely on dedicated infrastructure as part of ensuring data integrity and compliance.

Depending on the architected solution, private hosted clouds also offer other benefits that appeal to businesses looking for the agility and flexibility of public cloud environments. Dedicated Private Clouds offer the greatest degree of customer control over usage, storage, compute resources and cost. Virtual Private Clouds shares virtual resources with public clouds but leverages greater controls and security features to ensure greater compliance potential.

As IDC notes:

“IDC anticipates that virtual private cloud will be the predominant operational model for companies wanting to take advantage of the speed and lower capital costs associated with cloud computing, while cloud service providers will welcome the move away from the expense of dedicated 1:1 physical systems for delivering their business process and data center outsourcing and other services”

Hybrid clouds in the past have been identified as the cloud paradigm most companies will use to achieve IT goals, and while this is still true the concept of hybrid has many definitions. Combining internal infrastructure with hosted private resources could be considered a form of hybrid. However, mixing hosted private resources with public resources proposes a degree of IT agility that makes a strong case for moving infrastructure to an outsourced model.

There will always be some degree of internal requirements driving internal-only infrastructure, but with the increased usage of hosted private clouds, there is more reason to move away from the capital outlays, HR costs, and range of vendor fees.

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10 Sep 2013, 6:39 p.m.

With all the recent outages at Amazon, we are hearing from more and more clients looking for private hosted clouds!


16 Oct 2013, 2:56 p.m.

Really interesting article.

I work for Flexiant and we posted a blog titled, 'Private vs. Public Cloud Debate' (

I would really like to hear your thoughts.