The global private cloud market is predicted to increase at a compound annual growth rate (CAGR) of 8.98 percent through 2016, according to the latest data from TechNavio.
The research firm cited the reduced costs of private cloud overall as one of the factors contributing to market growth. However, the high initial costs of private cloud adoption might put a damper on that growth, the research firm judged.
The market also has seen a move toward hybrid cloud computing models combining private and public cloud, TechNavio noted.
Key private cloud vendors examined by TechNavio include Amazon (Nasdaq: AMZN), Hewlett Packard (NYSE: HPQ), IBM (NYSE: IBM), Microsoft (Nasdaq: MSFT) and VMware (NYSE: VMW). Other vendors examined in the report include Salesforce.com, Red Hat, Dell (Nasdaq: DELL), Citrix Systems (Nasdaq: CTXS), Rackspace, CSC (NYSE: CSC) and EMC (NYSE: EMC).
Reflecting the growing popularity of the private cloud, Dell previewed its OpenStack-based private cloud, Cloud Dedicated, at the Dell World Conference last month, according to a report by DatacenterDynamics.
Dell is looking to attract larger enterprises to its private cloud offering, arguing that its platform offers enterprise-level security and compliance features, the report said.
Dell is a long-time member of the OpenStack organization set up by Rackspace and NASA to promote open-source cloud platforms.
According to the OpenStack website, its effort "aims to deliver solutions for all types of clouds by being simple to implement, massively scalable, and feature rich. The technology consists of a series of interrelated projects delivering various components for a cloud infrastructure solution."