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Friday, May 28, 2010

Private Cloud Computing Takes Off in Companies Not Keen on Sharing See full article from DailyFinan

The most familiar examples of cloud computing are big, publicly available, Web-based applications such as Gmail and Google Docs.  But given concerns about security and reliability, few big companies are ready to entrust their IT operations to publicly shared infrastructure, even if it’s cheaper.  Large companies are creating private clouds by shifting their internal computer power and applications off the PC desktop and onto shared infrastructure, where employees use it only as needed. “These large, enterprise organizations have the economies of scale to deliver the same thing as [public clouds].  Oracle (ORCL) founder Larry Ellison prefers to call it “fashion driven” computing or “complete gibberish.”

But Bryan Byun, general manager of cloud applications at Palo Alto, Calif.-based software company VMWare (VMW), says there’s something to the concept, at least for enterprises.  “For a large company, we do see this as being different,” he said on May 25, where he, Stevens and other software executives convened for the Morgan Stanley Cloud Computing Symposium.

Software companies, which have focused most of their cloud computing efforts on public applications such as messaging and media, see increasing opportunity in the corporate world.  “You may be more familiar with [Akamai] in the media and entertainment spaces, but you should become increasingly familiar with us in the commerce, the retail, the enterprise business-to-business portal,” said Chris Schoettle, executive vice president for products at Akamai Technologies (AKAM), the Cambridge, Mass.-based Internet infrastructure company that serves customers such as Apple’s (AAPL) iTunes.

For now, though, big companies are going to spend a lot of money building their own private clouds because the comfort level with public clouds isn’t high enough.

http://www.dailyfinance.com/story/private-cloud-computing-companies-not-sharing/19494957/

Posted on 05/28
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