Private Cloud may rise to $26 bn in 2022: Forrester

Even as companies are fast embracing Public and Private Cloud solutions, the market for the Private Cloud environment will grow to $26 billion in 2022 -- up from $15.9 billion in 2017, implying a 10.3 per cent compound annual growth rate, according to a report by market research firm Forrester. Despite the recent interest in using Public Cloud platforms to host legacy applications, Private Cloud deployments are still a priority.

"While 59 per cent of global infrastructure decision makers rated building an internal Private Cloud operated by IT as a critical or high infrastructure priority, 61 per cent rated hosted Private Cloud as a critical or high priority," the report said. When it comes to software, commercial software is a top choice for the internal Private Cloud. Sometimes, companies leverage multiple Private Cloud solutions or open source software as part of or in lieu of a commercial offering. Forrester said that use of open source as part of a Private cloud solution is increasing. "In 2016, 42 per cent of global infrastructure decision makers' internal private Cloud platform was custombuilt using open source software, up from 39 per cent in 2015," the report said.

Private Cloud software suites also face challenges. They are expensive and not all enterprises can spend over $1 million for a 1,000 virtual machine (VM) environment, said the report.