Private cloud adoption to boost data centre outsourcing, says BroadGroup

Enterprise adoption of private cloud is expected to accelerate over the next five years, and will boost the opportunity for third party data centre outsourcing, according to a new report by consulting firm BroadGroup.

The firm said that hybrid cloud will be the next major opportunity where efficiencies can be gained by using public cloud for non-critical applications.

Accordint to the report ‘Competing in the clouds: emerging strategies for enterprise data centres’, private cloud will be the fastest growing segment in the enterprise market. However, migrating to cloud services will require a change in mindset by enterprise IT leaders, because of the ‘very different business and operational models’.

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The report suggests that in the short term, most companies will be able to cope with growing data demands using their existing infrastructure. Data centres will be the principal beneficiary of the migration, with space doubling from its current level over the next five years.

The firm believes that Hybrid clouds will evolve as the next big opportunity and that by 2020, for the majority of enterprises, as little as 10% of applications will remain in private clouds. These applications will be core or critical to the business.

BroadGroup said that non-critical applications will be provisioned via public cloud services or via virtual private clouds on public service infrastructures, and there will be exceptions, particularly in finance and central government sectors.

Marion Howard Healy, senior consultant at BroadGroup, said: “The signs are that a complex and interesting market structure will evolve over time. A significantly higher proportion of enterprise data centre space will be outsourced by 2015. In our view this could be as much as 35% by 2015.”