“Virtual” Private Cloud (VPC), Going Beyond the Conventional View

An IBM analyst wrote this good, but conventional, article about the Private Cloud and how its the next ‘new’ thing in IT.

Here was our Digital Bridge Partners reply:

I agree with most of your comments Marcus, but one angle that I think you are missing is the notion of how a ‘Virtual’ private cloud eliminates the need for much if any IT in-house.

Once enterprise companies digest that there is an opex alternative to in-house data centers and that the VPC gives them the control that they want, we predict a massive migration away from owning an IT plant, exactly as companies dumped their in-house electrical generating plants 100 years ago once the Public Utility model achieved its economies of centralized supply.

I think its somewhat conventional to think that the private cloud gives you enterprise the ‘on-ramp’ to the public cloud and IT departments the ability to be ‘service providers,’ but assuming that IT will own its own plant, which is intrinsic to the ‘public cloud’ rhetoric, might be naive.

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