In 2011, cloud computing demonstrated that it was a major driver of change in the IT industry. Organizations of all types and sizes began using the hybrid cloud -- a combination of public and private cloud computing -- in earnest. What can we look forward to in 2012?
The private cloud won't go away, but grow bigger.
Many early cloud projects were the result of developers frustrated by slow IT provisioning times. They took advantage of the ability to get rapid access to raw computing power from public cloud providers using little more than a corporate credit card. This lead pundits to posit that IT's function had failed and that the public cloud was the One True Way. Thus the private cloud, a dedicated on-demand IT infrastructure within the four walls of an organization, was somehow not "true cloud," and public cloud providers argued that private cloud should not exist because it wasn't flexible or cheap. I call this the "holier than thou" argument.
There are two problems with this idea. The first is an inherent contradiction: one cannot castigate IT departments for being inflexible when they are using private cloud to deliver a flexible, on-demand computing environment for their businesses. The second is that there are plenty of pragmatic business reasons why organizations find it easier and cheaper to deploy within existing data centers. Established, regulator-approved security and data privacy controls and processes are one example.
In theory it shouldn't matter where computing is done, but in practice it matters a lot. As one Wall Street CIO put it at a roundtable I attended: "Of course risk is the issue. If I can run it [the application] on a private cloud and pass audit, why run it elsewhere?"
The hybrid cloud will continue to grow.
Public cloud usage has driven a revolution in computing, especially for hard-to-forecast customer-facing applications. Private clouds are essential to organizations dealing with regulators, standards and other non-technical issues that are crucial to running business applications. The choice is driven by the needs of the business and the application, ensuring that hybrid clouds, making use of both public and private clouds as appropriate, will continue to be the pragmatic decision for most organizations.