TBR: 70% of Private Cloud Adopters Use Third Parties

Consulting firm Technology Business Research (TBR) reported 70 percent of private cloud adopters currently leverage third parties, and this figure could increase over the next few years.

The company’s Private Cloud Customer Research report, released this week, revealed the $41 billion private cloud market in 2014 could grow at a 14 percent compound annual growth rate (CAGR) to $69 billion by 2018.

TBR analysts said they expect the demand for managed private clouds to increase over the next two years as hybrid integration and security concerns create new challenges for enterprise IT professionals.

Analysts noted the adoption of self-built and third-party-delivered private clouds held steady at 30 percent and 70 percent, respectively, in 2013 and 2014 as well.

“Trying to be all things to all people deters customers that want those tailored and specialized solutions; think of Walmart versus a grocery store,” TBR Cloud Analyst Cassandra Mooshian said in a prepared statement.

The report also showed 59 percent of respondents named security as a top concern and/or pain point around adopting cloud services.

“As private cloud matures, growth is entering a different phase that is driven more by the flexibility and ease of management than by just security or cost savings. The skills gap in implementing, migrating and managing private cloud is driving customers to seek vendors that deliver clear and end-to-end migration road maps,” TBR Cloud Practice Manager Allan Krans said.

TBR surveyed 331 private cloud end users from across the globe in its report.

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].