Private cloud quietly evolves while public cloud takes the headlines

private cloud

Private cloud is changing to fit a multicloud or hybrid landscape. We recently attended a SAP user group event and it’s no exaggeration to say the sponsorship was dominated by public cloud providers. This has been true for other applications and enterprise IT markets for some time.

A cloud-first strategy is obviously not new. What has grown over the last few years is the emerging rejection by enterprises of a single public cloud provider for all services. IT leaders are looking at cloud and using the benefit of their experience and hindsight to realise the shortcomings around a single cloud strategy. Such as:

  1. Redundancy. Public cloud, at the end of the day, is just someone else’s computer and outages still occur. When this happens, you’re just one of many customers in the queue to be recovered and sometimes getting support at that time can be difficult. Who are you going to call?
  2. Performance.  It’s sometimes necessary to use multiple clouds to deliver speed and availability in situations where a primary provider is unavailable or can’t meet your requirements.
  3. Flexibility. Using a single cloud, you can’t leverage different clouds for different workloads or services. Large public cloud providers offer similar services to one another but can lack some highly specialised capabilities, such as IBM Power Systems and mainframe environments. Also, strict security requirements and/or in highly-regulated industries can’t utilise public cloud to start with.
  4. Data sovereignty. This is still an issue for many enterprises and while not as large as it initially was, there are still nations that want data to remain in their country. Consideration needs to be placed on the cloud’s physical geographic location, along with availability zones for failover. Often one single public cloud provider cannot deliver this.
  5. Hidden/unexpected costs. A single cloud provider leaves you with one choice for all applications. A great example of where this sometimes doesn’t work is SAP HANA, ingress and egress charges of public cloud can increase the budgeted cost for instance, by more than 10 times. For large deployments, this can be devastating.
  6. Managing vendor lock-in. Organisations that optimise for a single cloud provider’s environment can find it harder to migrate to another provider or move between them without a significant amount of additional work.

Public cloud isn’t about to decline any time soon. In fact, Gartner predicted a growth in 2019 of 17.5% and predicts a similar growth of 17% in 2020 in public cloud. If there is a decline it will be in the choice of a single cloud provider. This will continue to be driven by two paths…

  1. Multiple public clouds (Multicloud).
  2. Companies connecting their private cloud to public cloud and creating hybrid cloud.

Hybrid architectures have become the platform that enables organisations to extend beyond their data centres and into cloud services. It is no longer a matter of if, it’s a matter of when. Hybrid and multi-cloud computing lower the risk of public cloud provider lock-in, adds service resiliency and migration possibilities, in addition to the core cloud benefits of agility, scalability and elasticity.

At Blue Chip we deliver multiple cloud options. Using our IBM expertise to deliver private and hybrid cloud solutions across multiple industries and our certifications enable us to deliver of strict security requirements for highly regulated industries. In addition to this our model allows our clients to connect to and utilise the services and platforms provided by all the major public cloud providers.


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