With all the excitement surrounding cloud computing, how are data center companies handling the buzz? Key concerns involve questions like: Will enterprises that rely on hardware at their fingertips move their company’s applications from the data center to the cloud? Do people really trust the cloud as an alternative?

Informationweek estimates that the cloud will grow by more than 19% over the next 5 years. It also indicates that companies will still support and maintain traditional on-premise systems due to the substantial historical investment and customizations developed therein. So I ask again, will companies move away from traditional colo to the cloud? I think yes…and no.

Back in ’09 McKinsey put out “Clearing the Air on Cloud Computing,” which I feel still holds true today. One piece of the report says that that while cloud computing is optimal for the small and mid-sized business, large companies will spend less if using traditional data centers.

Some speculate that companies will just build their own private clouds instead of outsourcing their apps to someone else’s cloud James Urquhart, market strategist for cloud computing and data center virtualization at Cisco, believes that corporate clients will want their cloud environment behind their own firewall.

I couldn’t agree more. In fact, FIBERTOWN hosts client’s internal clouds today. All products need demand, and the cloud surely has that, but until more enterprise companies really make the move to 3rd party clouds, colo providers have no need to worry.

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