May 25, 2009

The battle between public and private clouds

When companies start building private clouds, will cloud providers eventually lose out?

Lately I've seen a lot of chatter on the interwebs debating public vs. private cloud infrastructures. This could be the first development in cloud computing that actually hurts cloud vendors. It's the whole Internet-vs.-intranet debate all over again. And while that all worked out fine in the end, this new situation could go either way.

Right now cloud computing is all the rage, and the focus has been on taking things from inside the infrastructure to a heavenly place in the "public" cloud. "Private" clouds, on the other hand, tamp all of that goodness back down into a corporation's datacenter. So the real question becomes who will win and who will lose when it comes to business customers. This is pure speculation on my part (not a joke at the expense of my readers -- I love you guys), but here is how I think things will shake out.

[ Keep up on the latest in cloud developments with InfoWorld's Cloud Computing newsletter and Cloud Computing channel. ]

I think companies like Amazon will start seeing less and less opportunity in the enterprise space, while hardware vendors like Cisco and their "unified computing" offering see more and more opportunities to make clouds rather than manage them. I think the large storage companies will win out. Cloud computing's biggest challenges at the enterprise level are the various rulings, regulations, and good ol' corporate bureacracy surrounding where data resides. Many enterprises interested in the cloud's benefits are hesitant to make the switch due to the legal ramifications. With that in mind, I see the large storage vendors like EMC and NetApp playing an obvious role, but I also see a role for some of the newer startups like Fusion-io and Storspeed.

I know, I know -- too early to tell. What do you think will happen in the showdown between cloud providers and cloud makers? Personally, I think that CIOs with enterprise budgets and control of enterprise infrastructures will start building clouds of their own and yanking the one technology taking data out of private datacenters back under their iron purviews: back into safe, warm, cozy datacenters for all your proprietary and client data.

As always, I welcome your comments and open discussion.

White Paper

D2D Virtual Tape Library Replication Primer

This whitepaper explains the terminology and concepts behind Data Replication technologies and establishes some sizing rules through worked examples. Learn the new paradigm in disaster tolerance—protect data anywhere.

Download now »

White Paper

An Alternative to Virtualization for Datacenter Cost Savings

Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.

Download now »

White Paper

Why Your Firewall, VPN, and IEEE 802.11i Aren't Enough to Protect Your Network

The emergence of WLANs has created a new breed of security threats to enterprise networks.

Included in HP ProCurve WLAN solutions is security technology that alleviates threats from WLANs through:
* Monitoring wireless activity inside and out of the enterprise
* Classifying WLAN transmissions into harmful and harmless
* Preventing transmissions that pose a security threat to the enterprise network
* Locating participating devices for physical remediation

Download now »

White Paper

Bringing the Edge to the Data Center

Effectively address data protection challenges, implementing solutions that help store and protect business–critical data while cutting costs and improving efficiency and reliability.

Download now »
Tragicomix 25-May-09 5:11am
Private clouds make so much more sense.
dmills59 25-May-09 12:21pm
But "if" I were a enterprise CIO with budget and control, I would naturally want to build my castle within the boundaries of my kingdom (fiefdom). I would also think this would have less to do with real issues of security, privacy, regs., etc. than more self-serving ones; - "I built this thing therefore I am". Also, what is wrong with assuming companies like Microsoft, Amazon, Google, and the like that are putting billions of R&D and infrastructure dollars into cloud computing won't do a better job of securely and reliably hosting data and services than the majority of corporate data centers to date?
MarkSpark 25-May-09 1:31pm
I'm trying to play catch up with this cloud thing, but I understood the idea of the cloud is that it frees the corporate of the responsibility of certain infrastructure issues etc - just plonk it in the cloud and it becomes the cloud vendors problem! (A bit like outsourcing I suppose). But surely a private cloud defeats that benefit at least (I'm sure there are others, just can't recall them now), plus now it adds another layer of complexity (which would otherwise be the vendors problem).
jjdillii 25-May-09 3:11pm
Private networks for the large organizations that are pushing around a huge quantity of data, internal VoIP, and video - offers lower cost, more security, less latency, fewer dropped packets, more control over transport protocol, and faster response to service issues. No doubt there are other advantages. Decisions to build independent networks are not decided in high school.
javac 25-May-09 5:33pm
1 reply
I am not sure I understand the concept of a "private cloud". Isn't a cloud "public" by definition. Wouldn't a "private cloud" be a server/platform/application that sits in the company data center?
Mentat 1-Jun-09 11:25am
1 reply
A "private cloud" enables IT to move from a support role to a service oriented role. Where resources can be quickly provisioned and charge back enabled for resources consumed. I think of it in terms of "public" cloud benefits controlled and delivered by internal IT.
javac 14-Jun-09 9:40pm
That makes sense. Thanks for the clarification.
tbostrup 26-May-09 6:49am
For many, cloud computing is a solution looking for a problem. It wasn't created to meet a consumer or enterprise need, it was created because (provider) companies believe they can make more money off of running their (or your) software for you. And that doesn't automatically mean it is bad, but you have to take a cynical look at what your benefits, risks, and exposures are. For companies without enterprise level data centers, or that expect explosive growth, cloud computing addresses a real need. For a stable enterprise it may potentially offer some savings and convenience, but once you are locked in, you are exposed to whatever your cloud vendor decides. Choosing a single-vendor, proprietary cloud means putting all your eggs in one basket, you have no control over it, and you completely bet your business on it. Even if a vendor of critical applications or infrastructure components go out of business, the things you have installed will continue to work while you update or replace your systems. Should a proprietary cloud vendor go under, it may take your business with it. Once cloud computing becomes a commodity - such as web hosting is - an enterprise can choose a provider - or host in house. Then cloud computing will become useful, as it addresses performance management and flexible distribution of resources.
Gray_Hair 26-May-09 10:23am

Keep it simple. Cloud in this context will ever be ambiguous because there are so many bilateral trade-offs build into the whole concept of cloud-architecture. No two vendors on the public side take the same approach, and of course no two companies on the private side will be sensitive to those trade-off with like profiles.

Key among the parameters of cloud architecture (as with most software) is scope. The whole cloud concept has simply highlighted the ability of current networks and associated protocols to expose services in much more broadly usable form, and from more network locations than ever before, such as between perimeters and outside firewalls. The fundamentals of make VS buy (public VS private) do not change, therefore it is control of scope that gives you the best control of the risk you are willing to accept.

All that said, if you think about it, you will see that the real subject (or space, in pop speak) is a little bigger than just cloud-computing. It is more like a continuum, from Public Cloud, to Public On-Demand, the difference being scope, on through Private Cloud, to Private Service-Oriented-Architecture, again the difference being scope. One day perhaps it will wrap all the way back around to public SOA.

BUT, there is always an 800 LB gorilla, that no one likes to talk about, because he is so scary. In this (and in most) domain(s) it is security and data ownership/stewardship. Get those right and the rest looks easy.

Sign up to receive Cloud Computing Resource Alerts

Subscribe to the Today's Headlines: First Look Newsletter

Find out what will be news for the day, with our first-thing-in-the-morning briefing.

©1994-2009 Infoworld, Inc.