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discrete service provider. The major infrastructure choices available for today's IT organizations include:

` Traditional on-premises deployments. On-premises server deployments — especially nonvirtualized workloads — can be the preferred deployment method for applications that have very strict compliance requirements or other requirements that necessitate keeping all data on servers physically under the organization's control.


Private cloud, hosted by the enterprise. These deployments not only provide key benefits of cloud computing, such as automation, scalability, and flexibility, but also enable organizations to satisfy their requirements for strict compliance and control. In this form, internal IT staff must still manage the cloud technology infrastructure.


Private cloud, hosted by a managed service provider (MSP). These deployments provide even more benefits of the cloud, with the added benefit of outsourcing the management of the cloud technology infrastructure to the service provider. Applications that could be a good match for private clouds hosted by MSPs include mission-critical workloads such as business processing or decision support.


Public cloud. These deployments take full advantage of cloud benefits but provide the least degree of control and compliance. Applications for which public cloud deployments could be a good fit include collaboration, HR, scale-out Web, and email.

Given the multiple options available to customers, it is important for them to define their technology and vendor strategies and determine whether they are better served in a private cloud environment — in-house or with an MSP — a public cloud environment, or an architecture that leverages both types of cloud computing.

Further, cloud computing enables new frameworks for application development. Many new computing solutions are coming to market that enable developers to build applications that leverage the relatively unlimited hardware resources with cloud computing so that they can scale up as they add more users or as business needs change. These new tools enable developers to build applications knowing that these resources are available to them.

Benefits of Private Cloud Computing

IDC sees a range of benefits associated with private cloud computing. These benefits include:

` Reduced burden on the IT staff. One of the great benefits of cloud computing is its degree of automation. Today, the average number of physical servers managed by a single system administrator is 25, and with virtualization, the number grows to 43 VMs per administrator. IDC expects that by leveraging the built-in automation tools that come with private cloud solutions, IT organizations could potentially manage 100–250 VMs per administrator depending on the applications and IT processes.


Greater scalability. Without the need to deploy, test, and fix physical servers, organizations can spin compute capacity up or, more importantly, down at a moment's notice.

©2011 IDC



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