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Why Private Cloud Adoption will Reach 85% by 2018

Just published, the Private Cloud Customer Research report for the first-quarter of 2015 estimates that the private cloud computing market will grow from about $45 billion this year to a forecast $80 billion by 2019.

According to the findings from a worldwide market study by Technology Business Research (TBR), more than half of the enterprises surveyed are already using some form of private cloud computing solution.

This rate of adoption is expected to reach 85 percent by 2018, because the survey respondents perceive private cloud as more secure than public cloud offerings -- making private cloud the most adopted hybrid IT solution for commercial IaaS and PaaS requirements.

TBR believes that private cloud computing adoption is the intersecting point between hybrid outcome-based adoption and public technology-focused adoption. Besides, enterprises are beginning to favor self-built cloud services to provide increased IT control and more centralized purchasing.

"Private cloud adoption is on the rise, but increased demand for data analytics and Internet of Things (IoT) solutions -- and the shift toward hybrid IT buying -- is cannibalizing enterprise cloud budget allocations, said Cassandra Mooshian, cloud analyst at TBR.

According to the TBR assessment, proven security expertise is likely to become a key point of differentiation for cloud infrastructure providers. Open source software vendors with the best overall security offerings are expected to be well positioned to capture more of the new private cloud growth through 2018.

That said, this study shows that private cloud computing users are most concerned about security and data ownership, and almost 60 percent of survey respondents claim security is their number one concern when considering cloud service adoption.

TBR's market analysis uncovered that the IT vendors with broad experience in software DevOps, consulting services and enterprise security practices are best positioned to capitalize on upcoming private cloud computing growth opportunities over the next two years.

Moreover, IT is involved in nearly 70 percent of private cloud computing purchasing decisions due to these security concerns. Line of Business (LoB) leaders will gladly involve IT organizations that are qualified to address their evolving requirements for open hybrid cloud solutions.

"Security is the decisive area in which vendors must message their superior capabilities loudly and clearly, while showcasing their customer success stories," said Mooshian.  Note; for this study, TBR surveyed over 2,200 purchasing decision makers within large enterprises across North America, Western Europe and the emerging Asia-Pacific regions.

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