CIOs have expressed a “clear intention” to move to private clouds or shared services centers, according to research recently conducted by Deutsche Bank.
The survey also cites the reasons that executives prefer to move to a private cloud, as opposed to a public cloud, solution. Among these are concerns about security, service level agreements (SLAs), and stability.
“CIO perceptions, fair or not, are still for the most part that internal IT can provide these features more reliably than Amazon Web Services (AWS) and Microsoft Azure,” the report said.
The results of the survey are not unique. Piper Jaffray conducted similar research and found that 35% of CIOs cited security as a primary reason to keep their clouds private.
“In light of the increasing number of security breaches, we believe the movement of data and workloads to a public cloud provider will likely remain muted in 2015,” the report said.
Deutsche Bank also cited other reasons that private clouds are more attractive to large company executives, including cost savings and reduced exposure to third-party providers. In-house solutions are also typically capital expenses as opposed to operational expenses.
However, the report also noted that CIOs seem reluctant to invest money into new private cloud initiatives. Only a few of those surveyed said that building a private cloud infrastructure will be a part of their fiscal year 2015 budgets.
The CIOs said that many of the private clouds that they have implemented consist of virtualized x86 infrastructures. They also use VMWare for management purposes, according to the report.
The results are based on interviews with 26 CIOs from companies around the world and with a combined revenue totaling more than $1 trillion. The combined IT budgets of all of the companies represented is about $20 billion. Since these are extremely large companies, it is not surprising that they are slower to adapt to market changes and more conservative than smaller to mid-sized companies who are showing a higher propensity to move IT out of house and into private clouds at secure, third-party hosting providers.
Regardless of your company size, Contegix can assist you with developing a private cloud solution that perfectly suits your needs. If you’d like to learn more about private cloud solutions and how they can help your organization, feel free to contact us. We’d love to answer your questions.