Businesses are rebalancing between public cloud and private cloud. Here’s why.

[Cloud_Experts]

Public-cloud-only is no longer the default strategy for organizations seeking optimal price, performance, security and control for their workloads. A new analyst report looks at how IT leaders today are thinking about cloud workload placement.

By Bryan Thompson, Vice President of Product Management, HPE GreenLake

When it comes to cloud, no topic stirs up debate quite like repatriation. Is public cloud really losing steam? Will private cloud soon reign supreme?* I’m here to make the case that, yes, more organizations are moving workloads out of public cloud and into private cloud (or just opting for private cloud over public cloud from the gate). The nuance here is that they are doing so on a selective and strategic basis.

Different workloads have different characteristics that impact both their cost and performance in specific environments. For example, workloads that are data-intensive or are beholden to governmental or industry regulations are best suited for private cloud. Whereas public is typically the way to go for workloads that are highly variable. As enterprises become increasingly savvy to this, they are rebalancing these workloads across their hybrid multi-cloud estates.

What’s driving this renewed momentum behind private cloud? It really comes down to the two things I mentioned earlier—price and performance. How do we know this? Because it’s not only come up in hundreds of customer conversations over the past year, but it’s increasingly the focus of those conversations. Plus, because we didn’t want everyone to just have to take our word for it, we commissioned Constellation Research to investigate further.

Constellation’s analysts interviewed CIOs and other IT decision-makers at organizations of all sizes, across a range of industries, who have adopted private cloud as part of their hybrid multi-cloud strategy.

Download a copy here with a simple sign-up: The New 2023 Cloud Reality: A Rebalancing Between Private and Public

Constellation found that moving the right workloads to private cloud delivers median cost savings of 50% and enables 65% higher workload performance by providing dedicated resources that reduce latency and ensure a high level of service reliability. Especially interesting is that these organizations also experienced 2x faster DevOps cycles with private cloud. Because public cloud has become so expensive, organizations are increasingly making developers jump through hoops, out of fear of “runaway provisioning.”

The reports unpacks three big advantages of rebalancing workloads to private cloud:

• Operational cost reduction. IT leaders report that the transition to a private cloud environment results in significant cost efficiencies. The private cloud strategy makes it easier to streamline workflows, optimize resource allocation and align provisioning with specific business requirements. One IT leader reported that “moving to a private cloud allowed us to fine-tune our infrastructure and automate processes, leading to a more efficient operation overall.”
• Increased control. Private clouds can deliver a higher degree of control over IT infrastructures. IT leaders say they have gained greater visibility and management capabilities so they can proactively address issues and implement changes as needed. As one CIO put it, “with our private cloud, we have full control over the infrastructure and can implement changes or upgrades on our own terms. This level of control has been immensely valuable in driving our business forward.”
• Accelerated innovation. IT leaders reported a surge in innovation and experimentation within their organization as a result of moving to a private cloud. Their teams have been able to explore new technologies, test innovative solutions, drive digital transformation initiatives and build a culture of innovation. According to one CIO, “The move to a private cloud opened up opportunities for experimentation and allowed us to rapidly prototype new ideas, fueling our innovation efforts.”

Check out the full Constellation Research report for more insights. There’s a great discussion of the potential challenges associated with a private cloud strategy (all of which are easily preventable with HPE GreenLake for Private Cloud Enterprise), and a guide to making the right private cloud vs. public cloud decision for a given workload.

Watch the video below with Constellation Research analyst Ray Wang and Vishal Lall, GM of HPE Software and GreenLake Cloud Solution Services, to learn more about how companies are rebalancing their hybrid cloud strategies.

Learn more about HPE GreenLake for Private Cloud Enterprise, a managed cloud experience for bare metal, containers and VMs in your private environment.

Bryan Thompson is the Vice President of Product Management for HPE GreenLake, responsible for product strategy and go-to-market for HPE GreenLake Cloud Services and Solutions. Bryan brings over 20 years of experience across product management, corporate strategy & development, marketing, and solution incubation. He has held executive and leadership roles at Oracle, Rackspace, Limelight Networks and Amazon.com.

*See, for example, this DCD article: Cloud repatriation and the death of cloud-only. And this InfoWorld piece: 2023 could be the year of public cloud repatriation

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