IT investment, throughout the global enterprises, is increasing more than ever. A recent Gartner recently suggest that spending on public cloud services will reach $109 billion this year, up from $91 billion from last year’s spending. Isn’t that overwhelming? Perhaps a positive sign for enterprises! But how come the increasing IT investment is going to benefit enterprises? Well, it is with the new Cloud Operating Model. Talking about an enterprise, it builds a private cloud that is cost competitive, attract apps to stay in-house, and support a larger server-to-admin ratio. It helps developers and operations (DevOps) remain untangled from each other’s day-to-day operations, which is significant for any IT enterprise. Is such massive amount of money spent on public cloud makes some sense for you? I believe yes. It’s actually a wake-up call to bring the same in-house, and to build your private cloud. And why you should do this? Let’s find out what VMware has to say on this:

First, in-house cloud user services attract apps to stay in-house. PwC suggests that large (very large) enterprises leak as much as 30% of their IT budget to the cloud. As this is done with in-house IT involvement, it poses a corporate risk for security and compliance. Building a private cloud keeps apps in-house, and gravitate more users toward using the internal resources.

Then, your IT people will be able to support more services on per-admin basis. They won’t have to mess up with application outages, troubleshooting, day to day operations and fire drills of the applications that run on them. Hence, they’ll have more time to troubleshoot squarely in their wheelhouse. You can standardize application components, which means saving more time and hence more productivity. Now, you’ll have to manage much smaller service catalog, especially when it comes time to patch the OS or middleware.

Private cloud saves a total of 12% combined annual cost savings over public clouds on a per-application basis. Does that sound good? Finally, as your app team will be the real owner, they will be able to develop, deploy and support their applications completely, leading to improved services and app uptime. True ownership of their application lifecycle, development and troubleshooting by in-house team results in better services and maximum uptime.

Besides these insights, what VMware brought for us is the newest version of vSphere. The complicated and fairly detested vRAM-based pricing model has been taken out of the loop, and the web-based client for the software has replaced the Windows version. V5.1, launched at VMworld 2012, centralizes backup and replication for the first time, and doesn’t require customers to buy a Windows license if they happen to be running Linux. In the same event, HP’s Converged Cloud expanded with VMware vCloud Suite 5.1 to intertwine VMware’s virtualization, cloud infrastructure and management portfolio into one SKU, which simplifies the adoption of cloud technology.