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Business Ecology Initiative & Service-Oriented Solution

Michael Poulin

A Private Cloud - it is just a non-Public Cloud

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Last month Joe McKendrick posted his BLOG "Do Whatever it Takes to Keep IT In-House, says ebizQ's Michael Poulin" where he quoted me on "I am saying that the enterprise, if it wants to live a long good life, has to keep its IT in house" a bit out of the context while I talked about some business consequences of using Cloud Computing. Well, I assume that, probably, old fashion people still believe that IT and Cloud Computing are not the same things.

At the same time, Joe has explained my actual position regarding Cloud Computing very well: "Remember this as well: Just because a lot of technology resources may reside outside the organization doesn't mean an enterprise won't need tech-savvy executives that know how to make the most of technology. Such individuals are needed more than ever, to help identify and coordinate both internal and external technology-based services. " These "tech-savvy executives" are the ones who I've meant as IT that I advised to keep in house.

Moreover, my experience tells me that the Private Cloud hosted by particular trusted provider outside of the client-company is the way to go for the organisations of all sizes. Such hosting may be easily organised under the direct control and monitoring of the client-company, in accordance to its specification, transparently and reliably from the client's business perspective. You, as a client-company, always know what is going on with your data and software in the hosting SW and HW environment; you define and dictate when the hosting provider has to patch the operating systems and not to disturb your own clients as well as when and how apply compliance dictated by the industry or country laws and regulations. With Private Clouds, You are in control over your business assets.

Public Cloud is, probably, cheaper but I've counted 15 pure business risks and 8 technical-business mixed risks for it. This type of Cloud, as it is today, is suitable for non-critical IT needs like quick complex calculations or POC, or for those businesses who cannot afford Private Cloud of external vendors yet.

Also, when I read the ZapThink's comparison of mission-critical SW solutions with using of office furniture, which was put by Jason'(Bloomberg), I was jolted. If we accept the 'furniture logic', Jason's proposal sounds to me like having a chair in one room while your table with served dinner in another room... Companies write their own software because they cannot find appropriate products with reasonable cost/time of customisation. I hope many would agreed with me in this. Certainly, some SW products become commodities and they may be offered from the Cloud's "shelves" but talking about massive transition into Clouds is a bit reckless nowadays. This means only one thing: despite immediate financial benefit of placing corporate SW into the Cloud, play a small chess game - calculate a few steps ahead from the perspectives of your corporate business (if you cannot do this, I can help you) and then decide if you immediate benefit worth the risks in the future. Returning your SW back may be much more costly than placing it into the Cloud.

Before jumping into the Cloud, be sure you know how to get out (if needed).

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I think the debate of keeping IT inhouse vs outhouse is a bit misleading. This is because one can have ones private cloud which can be think like inhouse IT.

Yes, Cathy, this is exactly my point. Thank you for the comment.

So true, private cloud gives you the full control over your business assets.

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In this blog, Michael Poulin writes about business and technology ideas, concepts, methodologies and solutions leading to service-oriented enterprise, the primary instrument for obtaining business objectives in fast-changing environments.

Michael Poulin

Michael Poulin is an enterprise-level solution architect working in the financial industry in the U.K. and the United States.

He specializes in building bridges between business needs and technology capabilities with emphasis on business and technical efficiency, scalability, robustness and manageability. He writes about service orientation, application security and use of modern technologies for solving business problems. He contributes to OASIS SOA standards as an independent member and is listed in the the international "Who's Who of Information Technology" for 2001. View more

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