There have been a number of predictions on how Cloud technology will take the world by the storm and how it will cause a paradigm shift in computing concepts. The last two decades have proved the accuracy or otherwise of the predictions. Cloud computing has matured and has shifted perspectives on computing. Today, the demand for online data centers for private Cloud constructs far exceeds available supply! This trend is partly fueled by what the growing popularity of the Cloud and its offerings, and partly by the fact that organizations are quickly arriving at the realization that optimal, economic use of on-premise infrastructure may be a distant dream.

GigaOMreported on a survey* conducted by research firm Campos Research and Analysis (commissioned by Digital Reality Trust) that a desire for internal private Clouds is driving the growth in data center technology. 300 IT firms across North America participated in the survey. 98% of the firms stated that they had plans to expand data centers to the Cloud in 2013-14. The primary reasons for the proposed expansion being–greater IT security, energy efficiency, use of latest technology / applications, and increased demand for additional storage space. The survey further found that there was a sharp increase in budget allocation for data center expansion.

The survey also revealed that the Cloud was no longer being regarded as a means of off-siting data and digital assets. It was being conceived as an important part of the data center strategy. This adds a new dimension to Cloud based data center conceptualizations.
The ‘Private’ Cloud data center model is often recommended by CIOs and IT managers for the benefits it can offer. This is especially true in financial service industries where data security and availability is of paramount importance and data growth far exceeds infrastructure growth. Private Clouds are off-site, scalable, redundant, highly available, secure, recoverable from anywhere, anytime and on any kind of hardware and facilitate legal compliance. Physical security of the infrastructure and associated maintenance issues (such as power supply or cooling) is managed by third party vendors as a service. Security lapses and software based partitioning of private spaces can be dismissed as security issues that are part of the pitfalls of a public Cloud model.

Fundamentally, business managers are eager to go with the recommendations as they see private Cloud data centers as aligning with the objectives and goals of the business. The increased cost brings in new business opportunities and the computing model promotes agility in a rapidly changing, competitive environment.