IT Forecast: Empty Private Clouds

When asked about cloud computing in an interview, Oracle CEO Larry Ellison once ranted, “Cloud is water vapor,” and then pointed out that cloud computing is simply “a computer attached to a network.” Years later, businesses still struggle with vague definitions and uncertain returns on their investment in cloud infrastructure.

As enterprises look at cumulative contract costs with cloud providers like Amazon Web Services, many have come to the conclusion that they can build more cost effective, secure and controlled private clouds within their own datacenters. Last year Gartner predicted a 10x increase in private cloud deployments, driven by speed and agility as primary benefits.

So how successful have centralized IT organizations been at delivering speed and agility? Not very successful.

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