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Enterprises Opting for Internal, Not Public, Cloud

February 05, 2013 - News

Almost half of enterprises in North America and Europe are planning internal cloud projects for 2013, according to new survey results from TheInfoPro, part of 451 Research.

All told, 47 percent of small and mid-sized organizations said internal cloud ranked among their top-two cloud related projects for the year. Those deployments are expected to mimic the functionality of providers such as Amazon, TheInfoPro said.

And enterprises remain skeptical about the cost savings of the public cloud. Thirty-six percent of end users say they expect to save between 1 and 10 percent from their internal cloud efforts, with the bulk of the savings coming from increased automation, TheInfoPro found.

For now, 64 percent of survey respondents are in the early stages of the standardization, consolidation and virtualization portions of their internal cloud deployments. Of the 61 percent in the virtualization phase, almost half said they face significant road blocks in the quest to move toward automation. Obstacles cited included budgets and people, resistance to change and technology issues. To be sure, these challenges highlight ideal sales and business value opportunities for resellers and agents specializing in cloud projects.

Peter ffoulkes, TheInfoPro's research director for cloud computing, said as much.

"As IT organizations complete their infrastructure virtualization and automation projects and turn toward cloud initiatives, there will be significant upside opportunity for a veritable host of cloud service and cloud enabling technology vendors over the next two years."

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