Nearly half of large enterprises will have hybrid cloud deployments by the end of 2017, according to Gartner. In the past three years, private cloud computing has moved from an aspiration to a tentative reality for nearly half of large enterprises. Hybrid cloud computing is at the same place today that private cloud was three years ago. Actual deployments are low but aspirations are high.

When it comes to drivers of private cloud computing, while cost is always an important consideration, a business case for private cloud cannot rely on lower costs as the primary justification.

“Virtualisation reduces capital expenses, and standards and automation reduce operational expenses,” said Thomas Bittman, Vice President and Distinguished Analyst of Gartner. “However, taking the next step of adding usage metrics, self-service offerings and automated provisioning requires investment in technologies without a significant reduction in operational cost. With this in mind, the driving factor for going that next step should primarily be agility.”