Cloud is not HYPE for us – we see core business value in using and maximizing the cloud.  Benefits align with the key elements of our Data Center Strategy and the needs of our business (agility, efficiency, security and availability).  Cloud Computing and the usage models it brings is forcing us to change the way we inside Intel IT look at our architecture: from the client technology to the data center infrastructure and the way in which we deliver services to our business partners and developers.

As a result, many companies are evaluating a multi-year enterprise cloud computing strategy with a focus on building a highly virtualized shared, multi-tenant infrastructure (improving cost efficiency and capacity) while delivering on-demand, self-service applications to business users with increased transparency to service usage and availability  (measured services and health) in our enterprise private cloud architecture.  Note that some IT shops (like Intel IT) are already utilizing the public cloud today for non-differentiated IT services – like expense reporting, web translations services and some social media solutions.

In fact, we estimate that IT can save up to $25B annually by improving operational efficiency, manageability and simplifying the datacenter.

Cloud, especially public cloud, has been getting a lot of attention.  However, the largest cloud sub-segment growth over the next several years is expected in private cloud.   The main reason is there are many moving parts to cloud implementation, and IT shops are starting at different points on this continuum with regards to infrastructure and internal expertise.  Also, most medium to large IT shops won’t go completely to a public cloud only model, as they want to maintain control of critical business processes and data.

Ron Faltin is Sirius’ Director of Business Development for Cloud Computing.