Is VPC The Next Level of Enterprise Cloud?

Hybrid Cloud, though a great promise, but quite difficult to follow through. Virtual Private Cloud bridges the gap and takes enterprises closer to Hybrid Cloud in its truest form.

Netmagic Oct 12th 2016

Hybrid cloud adoption is gaining strength at organizations of all sizes. IDC predicts that over 80% of enterprise IT organizations will commit to hybrid cloud architectures by 2017. Another estimate from Markets and Markets suggests that hybrid cloud market will achieve a CAGR of 27% by 2019. That’s far faster than the overall IT market. Gartner’s analyst Ed Anderson says, “Over time, I start to think of a multi-cloud environment as a foundation for the next wave of applications.” 

However, setting up a hybrid cloud requires considerable planning across many dimensions. CIOs who are well along in their hybrid cloud implementations will tell you that several challenges emerge as hybrid cloud projects roll along. There can be challenges relating to security, networking, data and application integration.  Lifecycle management of hybrid cloud systems can be dreadful if done incorrectly. 

These roadblocks spur the need to embrace Virtual Private cloud (VPC). Simply put, with VPC, organizations host their data centers or private clouds in a single-tenant hosted environment of a service provider that has extensions to its public cloud resources to seamlessly manage peak load burstability. It is more like an intersection of true forms of private and hybrid clouds that enjoys best of both the worlds.

In public cloud, the computing resources are hosted by a cloud vendor and shared among multiple tenants. In the VPC environment, organizations get an on-demand configurable pool of IT resources that are isolated from other tenants to a very large extent. It provides its users privacy as well as the power to provision IT services and compute resources within private VLANs and subnets.

Closer to a hybrid cloud environment, in VPC the application performance is greatly improved as it's not confined to restricted resources, especially during the time of peak workloads. Within VPC, users can seamless monitor and prioritize network traffic and eliminate performance bottlenecks and congestions, improving bandwidth efficiency.

This also makes VPC most suitable for organizations that work with data-sensitive applications. For instance, healthcare industry can securely store and process its sensitive information without having to invest massively upfront to create in-house resources and stay compliant with regulations despite leveraging some forms of public cloud ecosystems to better manage workloads. Or, financial companies handling card transactions can access to a large spectrum of compute resources securely and with better control on data, within VPC environments while being complied with PCI DSS regulations.

Naturally, hybrid cloud environments were constrained with the lack of inherent technologies that allowed seamless application and workload federation across the on-premise or private cloud on one end and public cloud on the other. With Virtual Private Cloud coming in, organizations are better equipped to take the hybrid route and leverage cloud computing closer to its truer form. The list of merits is definitely long.