During a panel discussion provocatively titled "The Private Cloud is Way Overrated," moderator Michael Crandell, CEO of RightScale, which sells an automated cloud management platform, made the point that public clouds, such as Amazon Web Services, are commodity-based, pay-as-you-go services for buying compute cycles from a third party. A private cloud is the same service, but operated within just one company.
"If you take that as the definition, are those two in competition, or do they complement each other or both? Because often it's misconstrued as that the private cloud is the false cloud," Crandell said. That prompted a response from Marten Mickos, CEO of Eucalyptus Systems, which develops on-premise private clouds for its customers: "That’s like saying an espresso machine is a false Starbucks."
Mikos added, "We make the best espresso machines in the world, and we see Amazon as the Starbucks." Another panelist added, continuing the analogy, that someone can use an espresso machine at home but still make an occasional visit to a Starbucks. There are going to be variations in cloud business models for different business verticals, and "we need many more adjectives to precede the word 'cloud,'" said Lew Tucker, VP and CTO of cloud computing at Cisco Systems. Besides unique clouds for financials services, health care and government verticals, there are public clouds, on-premise private clouds, hosted private clouds and even, as another panelist noted, private clouds with a portion made available publicly.
Chris Pinkham, CEO of Nimbula, whose software turns a company’s own infrastructure into a secure private cloud, thinks the whole discussion misses the point. "I think we spend way too much time arguing over the nuances of terminology," said Pinkham. "I think that what’s more important is what is the service and to whom is the service available."