Don't get bullied into public cloud: Private cloud is growing, says report

A recent report from 451 Research claims that OpenStack revenues could top $5 billion by 2020.

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In the cloud market, there's no denying that public cloud gets a lot of hype and private cloud gets a lot of hate. However, private cloud deployments keep growing undeterred.

New findings from 451 Research, released Monday, claim that revenues from OpenStack projects will grow at a 35% CAGR through 2020, led in part by private cloud. According to a press release announcing the research, OpenStack business model revenues will top $5.7 billion by 2020, with private cloud revenue from the deployments exceeding that of their public cloud counterparts.

"Based on its latest analysis, 451 Research believes OpenStack's success going forward will be in the private cloud space and in providing the orchestration for public cloud integration with on-premises and hosted OpenStack environments," the press release stated.

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The concept of the private cloud often gets a lot of flack for simply being a renamed, more flexible private data center. And, while it may be easy to make fun of, the private cloud can offer more fine grain control around security and performance, and more self-service access for developers, which could help it continue to gain fans in the enterprise.

According to RightScale's 2016 State of the Cloud Report, private cloud grew to 77%, with VMware vSphere leading the pack and OpenStack continuing to be a strong option as well. The report also noted the rise of hybrid cloud, and how that is affecting private cloud growth as well.

If there's anything to be gleaned from this data it's that, if your organization is still working with private cloud--take heart, you're not alone. While it may not have the excitement around it like its public cousin, private cloud is still a viable option in the enterprise.

Still, there are plenty of arguments for public cloud over private. TechRepublic contributor Matt Asay would argue that companies pursuing the private cloud are holding onto old thinking and could miss out on quick changes happening in the market. And, for the hybrid cloud hopeful, TechRepublic contributor Keith Townsend said that there's really no compelling reason for a hybrid cloud deployment.

Also, despite OpenStack's growth, their revenues pale in comparison to public cloud market leaders like AWS, or virtualization king VMware. Additionally, the majority of OpenStack deployments are still primarily for text and development, the release stated.

The 3 big takeaways for TechRepublic readers

  1. A recent 451 Research report claims that OpenStack cloud deployment revenues will top $5.7 billion by 20920, led by private cloud.
  2. Additional research from RightScale seems to show that private cloud deployments, overall, are growing--meaning it's still a viable option for the enterprise.
  3. While private cloud is useful, there are arguments against its ability to keep up with market changes, and other arguments that an integrated hybrid cloud strategy isn't worth it either.

What do you think?

Is your organization using private cloud or public cloud? Is either one better? Tell us in the comments.

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