nterprises of all sizes are undergoing massive data center modernization initiatives. They are looking to use technology to
cut costs and drive competitive advantage. At the core of many of these transformations is an effort to reengineer IT
delivery models to enable cloud-like flexibility of resources and reduce both capital expenditures and operational
overhead. That is giving rise to the private cloud movement. Indeed, private cloud adoption is accelerating and maturing. IT
organizations are looking to the private cloud for the elasticity it can provide to add or remove resources as required. ESG’s
research reveals that more than three-quarters of organizations would classify their private cloud deployment as either an
advanced internal cloud or a basic internal cloud.

Those organizations that have virtualized at least half of their production
applications are more than twice as likely as their more physical infrastructure-dependent counterparts to categorize their
environment as a complete IT-as-a-service operating model.