by October 1, 2012 0 comments

At the outset, the capex required to build a private cloud might seem too discouraging a factor to invest in it. However, a private cloud should not be discarded in this manner. We tell you how different benefits offered by a private cloud can help you achieve higher RoI.

1. More privacy

This is probably the single biggest motivating factor to invest in a private cloud. You have total control over physical security of the systems where your data and applications reside. Provided you have well-implemented security policies in place, you are safeguarded against losses due to breaches in security. Recent successful attempts to break into well-known public clouds stand testimony to this. Think about the legal risks too (e.g. WikiLeaks shutdown). Do you want to give up control over the systems where your data and applications reside? If you are subject to certain regulatory requirements, it is difficult to find a public cloud offering that can help you achieve compliance.

2. Less TCO

Public cloud services do provide you a utility-based, pay-as-you-go model to use their infrastructure which would be cheap to begin with. However, as you expand and begin to utilise a higher amount of allocated resources, the TCO becomes more than what you would have in case you had set up a private cloud over a period of time.

3. Better resource utilization

How well do you think a public cloud will help you utilize the investment you have already made acquiring systems and components? When you use readily available (although costly in the long run) CPU cycles and memory space in the public cloud, your own systems would tend to run idle and stay under-utilized. This wastage is prevented when you move to a private cloud, because a private cloud is something which you control and hence can be designed to be in sync with your systems.

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