# Why Are Enterprises Choosing the Private Cloud? Source: https://expedient.com/knowledgebase/blog/2012-10-10-why-enterprises-choose-the-private-cloud/ [](#) # Why Are Enterprises Choosing the Private Cloud? October 10, 2012 3 min Read ## Three Concrete Reasons Why Enterprises are Choosing the Cloud The cloud computing marketplace is growing – and at a pretty impressive rate: While a recent Gartner study indicates that more than **one-third of IT organizations have already implemented a private cloud computing solution** , it’s important to note that this upsurge in adoption is not relegated solely to the tech industry. Instead, enterprises from just about every industry are moving to the cloud – with the marketplace predicted to rise from $40 billion to $55 billion by 2014, and then explode to $240 billion by the end of 2020. The reasons for this rising popularity seem clear enough. Any number of well documented studies has proven that cloud deployments can have significant advantages, including: • Lowering capital and operating cost • Increasing flexibility • Improving service levels. So with this in mind, when exploring your options, try asking yourself: #### 1. Is your IT department already overtaxed? It’s the perfect catch 22 – As the enterprise expands, the applications and amount of data in the data center must in turn continue to expand, just to match the growth. But the complexity of the situation becomes even more dramatic, as most IT staffs are already struggling to provide the resources necessary to meet their already burgeoning infrastructure and availability demands. #### 2. Are rising operating costs not translating to benefits? Studies indicate that nearly 70 percent of direct business budget is spent on operating costs – not adding value. And with most IT assets becoming obsolete every five years, this means that you are stuck in a continual loop of making investments just to keep pace - not to grow, expand, and improve your core differentiators. The counter to this dilemma are cloud services, which offer lower IT investments and operating costs, on-demand capacity with self-service provisioning, and pay-per-use pricing models for greater flexibility and agility. #### 3. Are your needs always changing? [Private cloud solutions](https://www.expedient.com/products/cloud-computing/private.php) are designed for flexibility, allowing them to solve any number of direct business challenges. The private cloud utilizes server and resource virtualization to create resource pools– meaning that as your needs change, the cloud can be scaled to match. Interested in learning how your organization can benefit from the advantages that the cloud has to offer. Contact Expedient for more about our cloud computing solutions. _As Senior Vice President and Chief Operating Officer, Jonathan Rosenson is responsible for overseeing organizational functions that drive growth at Expedient. Jon additionally acts as an external spokesperson conveying the Expedient story._ [_Follow him_](https://x.com/rosenson) _on Twitter._ #### #### #### #### [ ![Jonathan Rosenson](https://res.cloudinary.com/dvlpy3tua/image/upload/fl_sanitize/uploads/jon-rosenson.jpg) Jonathan RosensonPresident & Chief Operating Officer ](/knowledgebase/blog/authors/jonathan-rosenson) [Cloud Computing](/knowledgebase/blog/tag/cloud%20computing) ### Related Posts [ #### The VMware Wait Tax: Why Every Quarter of Delay... Inaction on a VMware migration is widely treated as a neutral position, a de... Learn More ](/knowledgebase/blog/2026-08-04-the-vmware-wait-tax-why-every-quarter-of-delay-has-a-price-tag/)[ #### The Great Inversion What was easy is now hard. What was hard is now easy. {% include blog-key-... Learn More ](/knowledgebase/blog/2026-07-29-the-great-inversion/)[ #### Your New Cloud Strategy: Rebalancing for Cost a... {% include blog-key-takeaways.html items=page.key\_takeaways %} A few years a... Learn More ](/knowledgebase/blog/2026-07-15-your-new-cloud-strategy-rebalancing-for-cost-and-performance/) ## Subscribe to Our Blog VMware September 29th, 2026 at 1:00 PM ET ## It’s Time to Decide Your VMware Path [Join us →](https://go.expedient.com/VMWarePath) ### VMware September 29th, 2026 at 1:00 PM ET ## It’s Time to Decide Your VMware Path [Join us →](https://go.expedient.com/VMWarePath)