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Demand for hosted private clouds increases

Businesses are looking to bridge the gap between private and public cloud solutions.

The public cloud model has a number of a significant business advantages, including scalability and a wide portfolio of services. However, companies are often reticent to migrate data into this type of environment in light of security and reliability concerns. The need to balance both aspects of the cloud has encouraged more widespread adoption of hosted private cloud (HPC) solutions. Cloudtech recently explored the current market, noting that IDC analysts predict HPC spending to exceed $24 billion by 2016. 

There are two primary HPC deployment strategies: dedicated private cloud and virtual private cloud. The first offers a 1:1 ration between physical cloud infrastructure and virtual resources and focuses on the delivering services to a single organization. With a virtual private cloud model, companies can leverage shared virtualized resources with more enhanced security options than most public clouds come equipped with. As Cloudtech noted, IDC analysts expect the virtual private cloud model to prevail. Researchers attributed this to the cost efficiency gained by cloud providers as well as the added scalability that this design can provide for buyers.

"As more companies evaluate their Platform as a Service (PaaS) and Software as a Service (SaaS) options, the need to centralize the management of all cloud-sourced capabilities will become apparent," the news source said. "Meanwhile, the majority of dedicated private cloud buyers will be those companies with existing IS outsourcing or hosted infrastructure services contracts."

Cloudtech also touched on changes affecting the way cloud providers are positioning themselves. Companies are beginning to expand their offerings to meet the diverse needs of businesses. Cloud software provider SugarCRM recently explored this option with a private cloud version of its customer relationship management solution. According to ZDNet, this move is designed to meet the demand for a higher level of customer control in the enterprise market.