Introducing the Private Cloud – A Fundamental Element of Digital Transformation

As increasingly more companies are relocating their data offsite, cloud computing is transitioning from cutting-edge technology to industry-standard technology. Understanding how applications work is critical for businesses eager to digitize their processes and benefit from the perks of private cloud computing. Both performance data and economics are compelling organizations to reconsider their priorities and reorganize the way information is managed and stored.

What is the private cloud and what are the benefits involved? To begin with, private cloud solutions provide better security, flexibility, and improved cost control, meaning that they’re quite valuable for companies with customization demands and predictable workloads. In terms of factors impacting private cloud usage, the following apply:

SaaS (Software-as-a-Service) becomes SaE (Sofware-as-Everything) 

Using software to transform data center elements into “a-service” is disrupting the IT industry. And yet, we’re currently witnessing the approach transition even further. When automation integrates with (hyper)converged and composable infrastructure, the stacks integrated become code solutions. At the same time, networks and storage solutions that are defined by software enable companies to become truly agile. The factors mentioned above are a clear indicator that the private cloud is just as important as the public cloud development infrastructure; both are capable of helping businesses scale.

The private cloud streamlines performance via advanced computing capabilities  

Sophisticated computing workloads need tremendous resources. As the demand increases, the pressure created has changed the way the cloud operates. For example, designing an aircraft wing demands a certain amount of computing horsepower and cannot be compared with the cloud capacity needed to handle the inventory of an entire warehouse. Depending on the application workload, organizations should become more aware that every scenario is different, and usually, it all depends on graphics specifications, memory, CPU, and bandwidth. Private cloud solutions have proven to handle data-intensive tasks with greater ease, meaning that they can also provide higher performance at a more convenient price package.

Seamless cloud migration & optimized usage 

Serverless architecture, microservices, and container usage have all gone mainstream. In many industries, they’re the new standard because of their improved resource utilization levels. When disconnected from the main infrastructure,  the result is seamless cloud migration and optimized cloud usage. Features defined by the software are managed more dynamically, thus enabling technologies to operate effortlessly in the private cloud with few errors.

Flexible price structures make the private cloud more convenient 

Private cloud service solutions feature flexible, expense-based pricing models. Previously, costs increased due to hardware leasing models. But with pay-as-you-go and on-demand additions, the private cloud is gaining more traction as it provides a flexible pricing structure. Research says that such structures are compelling up to 46% of organizations to make the switch, and transition from public to the private cloud. For companies with apps that have predictable demands, having a conveniently priced model saves money without compromising business continuity.

Better regulations and data residency 

Private cloud providers are better positioned in the market because they meet the demands for data residency. Given that increasingly more countries around the world are implementing unbending rules on data usage, data residency is slowly becoming an essential part of all IT-related processes. As a result, it is expected that organizations will need to keep their data country-specific to abide by the geo-specific regulations.

Other advancements in technology will follow in the footsteps of the private cloud. 5G technology is just one of them. Because 5G networks provide low latency and increased speed, it is predicted that they will benefit private cloud and edge computing adoption shortly.

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