Click here to close now.




















Welcome!

@CloudExpo Authors: Glenn Rossman, Ian Khan, Kevin Jackson, Patrick Hubbard, Cloud Best Practices Network

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Article

Why You Really, Truly Don’t Want a Private Cloud

There’s generally little or no solid business reason to build a private Cloud

The more you focus on the business benefits of Cloud, the more likely you'll be leaning toward public over private deployment models. Furthermore, this mind shift isn't all about security risks. Once you work through the issues, you'll likely come to the same conclusion: there's generally little or no solid business reason to build a private Cloud.

I had the pleasure of speaking at two quite different Cloud Computing conferences last week: Opal’s Business of Cloud Computing in Dallas and UBM’s CloudConnect in Bangalore. As the conference names and locations might suggest, the former was the more business-oriented while the latter was chock full of techies. What I didn’t expect, however, was that the business Cloud crowd had a more mature, advanced conception of Cloud than the technical audience. While the techies were still struggling with essential characteristics like elasticity, trying to free themselves from the vendor nonsense that drives such conferences, the business folks generally had a well-developed understanding of what Cloud is really all about, and as a result, focused their discussions on how best to leverage the approach to meet both tactical and strategic business goals.

Perhaps the most interesting contrast between the perspectives of these two audiences was their respective opinions about private Clouds. The techies at the Bangalore conference, having drunk too much of the vendor Kool-Aid, were generally of the opinion that public Clouds were too risky, and that their organizations should thus focus their efforts on the private deployment model. The Dallas business crowd, in contrast, generally held that the public approach was the way to go, with some folks even going so far as to claim that public Cloud was the only true approach to Cloud Computing.

This distinction is remarkable, and aligns with ZapThink’s thinking on this matter as well: the more you focus on the business benefits of Cloud, the more likely you’ll be leaning toward public over private deployment models. Furthermore, this mind shift isn’t all about security risks. We recently debunked the notion that public Clouds are inherently less secure than private ones, and many people at the Dallas conference agreed. But there’s more to this story. Once you work through the issues, you’ll likely come to the same conclusion: there’s generally little or no solid business reason to build a private Cloud.

The Problems with Private Clouds
The best way to understand the limitations of the private deployment model is to take the business perspective. What are the business benefits behind the move to the Cloud, and how can you achieve them?

  • Cloud will shift capital expense to operational expense – instead of having to invest in hardware and software, you can pay-as-you-go for what you need as an operational expense, and write it off your taxes right away. Except, of course, with private Clouds, where you have to build out the entire data center infrastructure yourself. If anything, private Clouds increase capital expenditures.

  • Cloud increases server utilization while dealing with spikes in demand – instead of setting up a data center full of servers that run idle most of the time on the off chance you need them to deal with the occasional Slashdot post or Justin Bieber tweet, the Cloud improves utilization while its elasticity deals with those annoying spikes. Except, of course, in private Clouds, unless your organization is so huge that multiple divisions look to your Cloud to handle many different spikes in demand, that you fervently hope arrive at different times. But what if that Kim Kardashian visit to your corporate HQ causes traffic to all your divisions to spike at once? Fugeddaboutit.

  • Cloud keeps infrastructure costs very low for new projects, since they don’t have much traffic yet – again, works much better in a public Cloud. How many such projects do you expect to have at any one time? If the number isn’t in the hundreds or thousands, then private Cloud is massive overkill for this purpose.

  • The elasticity benefit of the Cloud gives us the illusion of infinite capacity – infinite capacity is all fine and good, but it’s an illusion. And illusions work fine until, well, until they don’t. Elasticity provides the illusion of infinite capacity as long as there is always sufficient capacity to meet additional demand for Cloud resources. You’ll never consume all the capacity of a public Cloud, but your Private cloud is another matter entirely. It’s only so big. If one of your developers has the bright idea to provision a thousand virtual machine instances or a petabyte of storage for that Big Data project, and your private Cloud doesn’t have the physical capacity to do so, then bye-bye illusion.

  • We already have a significant investment in our existing data center, so converting it to a private Cloud will save us money while enabling us to obtain the benefits of the Cloudin your dreams. One essential requirement for building an effective private Cloud is rigorous homogeneity. You want all your physical servers, network equipment, virtualization technology, storage, etc. to be completely identical across every rack. Look at your existing, pre-Cloud data center. Homogeneity isn’t even on your radar.

  • We don’t want to be in the data center business. That’s why we’re moving to the Cloud – guess what? Building a private Cloud puts you in the data center business!

  • Whatever cost efficiencies the public Cloud providers can achieve we can also achieve in our private Cloud – this argument doesn’t hold water either. Not only to the leading public Clouds—Amazon, Microsoft Azure, Rackspace, etc.—have enormous economies of scale, but they’re also operating on razor-thin margins. Furthermore, if they can wring more efficiencies out of the model, they’ll lower their prices. They’re taking this “price war” approach to their margins for all the regular business school reasons: to keep smaller players from being competitive, and to push their larger competitors out of the business. It doesn’t matter how big your private Cloud is, it simply cannot compete on price.

OK fine, you get it. Private Clouds suck, fair enough. You’ll even buy our arguments that public Clouds may actually be more secure than private ones. But you’re in a regulated industry or otherwise have stringent regulatory requirements about data protection or data movement that the public Cloud providers can’t adequately address. The only way you can move to the Cloud at all is to build a private Cloud.

Not so fast. While it’s true that regulatory compliance business drivers and limitations are becoming an increasingly important part of the Cloud story, any regulatory drawbacks to using public Clouds are essentially temporary, as the market responds to this demand. A new class of public Cloud provider, what is shaping up to be the “Enterprise Public Cloud Provider” marketplace, is on the rise. The players in this space are putting together offerings that include rigorous auditing, more transparent and stringent service-level agreements, and overall better visibility for corporate customers with regulatory concerns.

The incumbent public Cloud providers aren’t standing still either. For example, while Amazon built their public Cloud (and with it, the entire industry) on a “one size fits all” model aimed initially at developers, startups, and other small to midsize companies, they have been working on building out their enterprise offerings for a while now. While you may not be able to get solutions from the big players that meet your regulatory needs today, you can be sure it won’t take them long to figure out how to compete in even the most regulated industries. In a few years, if you look back on your decision to build a private Cloud on the basis of regulatory compliance, you’ll likely feel quite foolish as your competitors who waited will soon have fully compliant public alternatives, while you’re stuck paying the bills on your private Cloud initiative that will have become an expensive money pit.

The ZapThink Take
So, should any organization build a private Cloud? Perhaps, but only the very largest enterprises, and only when those organizations can figure out how to get most or all of their divisions to share those private Clouds. If your enterprise is large enough to achieve similar economies of scale to the public providers, then—and only then—will a private option be a viable business alternative.

In many such cases, those large enterprise private Clouds essentially become community Clouds, as multiple divisions of an enterprise share a single internal Cloud provider that operates much like a public Cloud, albeit for internal use across the enterprise. This community model makes sense, for example, for many federal governments. They can achieve the cost efficiencies of public Clouds while maintaining the control benefits of private Clouds by supporting the Cloud initiatives across multiple agencies.

Virtual Private Clouds (VPCs) also give many organizations the best of both worlds, as they leverage the public Cloud but run logically on your private network. Many hybrid Clouds follow the VPC approach, as hybrid on premise/Cloud models typically leverage private networks. ZapThink predicts this hybrid VPC model will become the predominant deployment model in the enterprise.

Still not convinced? Well, ask yourself why, and the answer is likely to be a question of control. Many executives will still be uncomfortable about public Clouds, even when we address the security and compliance issues that currently face public Cloud providers, simply because they don’t control the public Cloud. Our answer? Distribution of IT control is essential to the ZapThink 2020 vision, and is at the heart of the Agile Architecture Revolution. The Web doesn’t have centralized control, after all, and it works just fine. The app store model for enterprise IT, the rise of bring your own device (BYOD), and the fundamentally mobility-driven architecture of the Internet of Things are all examples of the broader shift to the notion decentralized control over IT. Fighting to maintain control is a losing proposition, and as a result, by 2020, private Clouds will be a mostly-forgotten bump on the road to the next big thing.

More Stories By Jason Bloomberg

Jason Bloomberg is the leading expert on architecting agility for the enterprise. As president of Intellyx, Mr. Bloomberg brings his years of thought leadership in the areas of Cloud Computing, Enterprise Architecture, and Service-Oriented Architecture to a global clientele of business executives, architects, software vendors, and Cloud service providers looking to achieve technology-enabled business agility across their organizations and for their customers. His latest book, The Agile Architecture Revolution (John Wiley & Sons, 2013), sets the stage for Mr. Bloomberg’s groundbreaking Agile Architecture vision.

Mr. Bloomberg is perhaps best known for his twelve years at ZapThink, where he created and delivered the Licensed ZapThink Architect (LZA) SOA course and associated credential, certifying over 1,700 professionals worldwide. He is one of the original Managing Partners of ZapThink LLC, the leading SOA advisory and analysis firm, which was acquired by Dovel Technologies in 2011. He now runs the successor to the LZA program, the Bloomberg Agile Architecture Course, around the world.

Mr. Bloomberg is a frequent conference speaker and prolific writer. He has published over 500 articles, spoken at over 300 conferences, Webinars, and other events, and has been quoted in the press over 1,400 times as the leading expert on agile approaches to architecture in the enterprise.

Mr. Bloomberg’s previous book, Service Orient or Be Doomed! How Service Orientation Will Change Your Business (John Wiley & Sons, 2006, coauthored with Ron Schmelzer), is recognized as the leading business book on Service Orientation. He also co-authored the books XML and Web Services Unleashed (SAMS Publishing, 2002), and Web Page Scripting Techniques (Hayden Books, 1996).

Prior to ZapThink, Mr. Bloomberg built a diverse background in eBusiness technology management and industry analysis, including serving as a senior analyst in IDC’s eBusiness Advisory group, as well as holding eBusiness management positions at USWeb/CKS (later marchFIRST) and WaveBend Solutions (now Hitachi Consulting).

@CloudExpo Stories
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...