Nokia research offers hope to private cloud providers

Nokia has said the common assumption that private cloud is too difficult or costly for enterprises to adopt is wrong.

The vendor unveiled a report, the Nokia Enterprise Private Cloud TCO Model, which found that “most” large enterprises can save a minimum of 25 percent on their IT costs over five years by moving to a private cloud.

Nokia made a number of assumptions for its report, including that the private cloud sits on top of existing IT infrastructure as an overlay, and includes commercial components from a variety of vendors as well as open source components including OpenStack cloud management software.

Mike Loomis, Head of the Large Enterprise Segment at Nokia, said: “Most advocates for the deployment of a private or hybrid cloud in large enterprises focus their arguments on the benefits offered by a cloud approach, be it faster deployment times for new applications, a more flexible approach to deploying and managing their resources and similar claims.

“While these claims in many cases are legitimate, our model differs by addressing the core concerns most enterprise IT managers have: is this move worth the investment, and are the savings really there?

“Our analysis provides a resounding 'yes'.”

Analyst firm IDC validated the model Nokia used.

According to its forecasts, spending on private cloud infrastructure was set to grow 11 percent to $13.9 billion in 2016, while spending on public cloud infrastructure was set to grow 14 percent to $24.4 billion.

The findings will be welcomed by cloud providers, led by the likes of HPE, Dell and Cisco, and telcos as they look to push beyond connectivity.

Nokia itself is also looking to move away from its traditional focus on telecoms.

Earlier this month, its Chief Marketing Officer said the company needed to up its game and could become “a large and strong software player”.

The Finland-based company unveiled a new strategy last year as it bids to turn around its financial performance.

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