In the simplest terms, public cloud is attractive because of convenience, the ability to acquire IT resources on demand and pay as you use them in a utility fashion. This is why many organizations are finding departments circumventing their own IT to get these services from public cloud providers. Although convenient, this introduces new issues like security, ownership of data and compliance to regulations. CIOs are trying to evolve their own service delivery models so that they can provide on demand services in an IT as a Service fashion to meet the new expectation of end users but this requires the ability to manage and orchestrate resources to provide the right services to meet business and economic consumption models. This is why clouds are not products you buy but rather highly customized architectures with the right kind of management.
But what if a company could create the best of both worlds, a public cloud like capacity on demand consumption model on a single tenant private environment that they can manage? What if we were able to analyze consumption rates and create workload pools made of customized configurations built on best of breed technologies and you paid only for what you used in a completely managed environment? Would that be of value? The overwhelming answer has been yes.
Yet the most compelling argument of considering this kind of alternative to public is not the security, the management, the control, but the economics. As the public cloud market has matured, some people realize that not all models are more cost effective in a public cloud that leverages economies of scale in a multi-tenant environment. As a matter of fact, depending on the model, it can be more expensive considering a long term cost of ownership and certain contract parameters and obligations. (Zynga example) We have found that our Capacity on Demand model can be about 30% more cost effective than the same service provided by a leading public cloud provider
If you are considering a public cloud solution, consider your options because that’s what cloud is really all about, options. I believe that a Capacity on Demand Model just might be a practical solution to your public cloud requirements.