Cloud

Private Cloud Spending Is on the Rise

As companies increase their investment, HPE Private Cloud offers a full-stack solution to streamline the process.

Doug Bonderud is an award-winning writer capable of bridging the gap between complex and conversational across technology, innovation and the human condition.

According to recent data, global spending on private cloud hardware, software and support services hit $51.8 billion last year and is on track to reach $66.4 billion by 2027.

Steve Loyd, partner marketing manager at HPE, says this cloud repatriation shift reflects a growing dissatisfaction with public cloud models due to unpredictable costs, latency concerns and a lack of control or ability to customize security and compliance policies.

Many organizations are also experiencing fatigue from managing DIY hybrid environments and aging legacy infrastructure, which often requires significant manual oversight, specialized skills and constant patching.

Three Reasons Why Businesses Are Opting for Private Cloud

There are three factors that contribute to increasing private cloud investment, says Loyd.

The first is a desire for more consistency. Private clouds have long been used to store critical data that must comply with strict handling and security requirements, whereas public clouds provide the scalability necessary to handle the big data analytics that drive corporate decision-making. “Companies like the public cloud,” says Loyd, “but they don’t want to give their data to another company.”

This has led to the creation of multicloud strategies where companies put some data on-premises and some in the cloud, each with its own set of functions and toolsets. But too often this means that organizations add complexity and lose continuity. At the same time, many IT teams are weighed down by DIY private cloud attempts or legacy virtualization estates that lack agility.

Private clouds offer a consistent IT framework under the auspices of local staff. HPE Private Cloud Enterprise delivers unified hybrid operations across sites, giving IT teams a consistent framework under local control.

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The second factor is cost. “It’s often inexpensive to put data on the public cloud, but expensive to use afterwards,” says Loyd. Public cloud providers may also charge data ingress and egress fees, which do not apply to private clouds. Legacy environments also drain resources with licensing sprawl, manual upkeep and hidden operational costs. HPE Private Cloud Business Edition simplifies virtual machine (VM) lifecycle management and reduces licensing overhead, creating more predictable economics across environments.

The third determinant is AI readiness. Training generative AI models requires clean, governed and well-classified data. HPE Private Cloud AI provides a secure environment designed for model training, allowing organizations to innovate with AI while protecting sensitive information. For industries with the strictest requirements, air-gapped and sovereign private cloud options deliver maximum isolation and compliance.

Let’s take a closer look at one of the most accessible on-ramps in the HPE Private Cloud portfolio: HPE Private Cloud Business Edition.

Benefits of HPE Private Cloud Business Edition

With HPE Private Cloud Business Edition, companies are better equipped to embrace the resurgence of private clouds.

“It’s a unique position that HPE has in the market,” says Loyd. “We offer a full-stack solution that enables VMs across a private cloud infrastructure, including hardware. Compute, storage and networking are all included.”

HPE also provides all necessary cloud software. Tech partners such as CDW can also offer support services so teams can get cloud hardware up and running, and address any performance or compatibility issues.

HPE also offers a unique cloud trifecta, according to Loyd, known as “visibility, reliability and flexibility.” There is an easy-to-use management console that provides visibility into all connected services. HPE Alletra Storage, meanwhile, offers 100% data availability to improve reliability, and the HPE Morpheus Essentials software delivers virtual machine flexibility. “Morpheus will run its own hypervisors,” says Loyd, “or it can run VMware.”

We offer a full-stack solution that enables VMs across a private cloud infrastructure, including hardware. Compute, storage and networking are all included.”

Steve Loyd Marketing Manager at HPE

Using Less Overhead to Gain Better Control Over Workloads

The private cloud has been around a long time, so it is not quite accurate to say it is having a comeback moment. What is new is the way it is being reimagined across the HPE private cloud portfolio, which delivers cloud-grade agility, self-service VM provisioning, AI readiness and unified hybrid management — all from a single interface teams can control. Organizations now have a choice of models that address their most pressing priorities, whether that is enterprise-scale consistency across sites, predictable economics, governed AI environments or sovereign control for the most sensitive data.

This breadth gives businesses greater control over their workloads, with less overhead. They can modernize at their own pace, align infrastructure with strategy and unlock the full potential of private cloud as spending — and expectations — continue to rise.

This HPE solution can also “meet the needs of the workload at a cost that is up to 2.5x lower, while providing lower latency and higher levels of resiliency,” according to a 2024 commissioned report. Plus, it can offer a 56% reduction in virtualization licenses, with a 55% lower cost of acquisition.

Ultimately this means that teams can gain greater control over their workloads, with a reported 53% reduction in operational overhead.

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