Private Cloud Market to Hit $69 Billion in Next Four Years
Everybody wants their own private space, especially in business. So it should be no surprise that businesses of all sizes are interested in keeping their files and applications separate from others. Keeping client data and confidential business information away from prying eyes isn’t just good business, it’s required to avoid hefty fines for violating privacy regulations.
As cloud hosting has become more popular, businesses are increasingly turning their attention to private clouds. With a private cloud, a business is given its own space on a cloud server, completely separate from all other clients who are under contract with that hosting provider. The benefits of a private cloud include increased security, more control, and improved reliability.
A Growing Market
Perhaps because of this desire for a separate space, the private cloud is expected to grow over the next two years, with companies choosing a hybrid integration. A recent report from Technology Business Research predicted that by 2018, the private cloud market will reach $69 billion as companies seek third-party solutions that offer both savings and privacy.
Currently, the private cloud market is at $41 billion, with an expected annual growth rate of 14 percent. This will provide a prime opportunity for cloud service vendors, who will compete for business dollars.
For businesses, this growth will also bring increased pressure. As they see competitors able to offer increased services, many SMBs have already found that they can’t provide these same services affordably on their own. But many are still struggling to learn the many types of cloud hosting options available.
Whether choosing private or public cloud, security remains a top concern for businesses. Both options are secure, but the private cloud offers an additional layer of security that can only be achieved by knowing a business has its own separate server space. For this reason, private cloud options will continue to prevail.