Trends for 2013: Growth of Virtual Private Suites

Mike Maughan is a Product Manager for FuseApp and Marketing Director for C7 Data Centers. On the side, Mike writes on his industry site Colo & Cloud.

C7 Data Centers

A virtual private suite is a physically and logically private cloud, whose hardware is owned and managed by the cloud provider, and leased to a single customer. This is a trend that has been developing in 2012 and expected to grow in 2013. I thought I’d gather some thoughts on this trend and share them with you.

Wes Swenson, CEO of FuseApp and C7 Data Centers explains this trend:

“As a data center provider, we’re used to seeing companies coming to us needing assistance with architecting a solution for their infrastructure,” said Swenson. “Now we’re seeing mid-sized companies who have embraced the cloud coming to us with the desire for better performance and lower costs. The virtual private suite is a perfect solution, and fits the multi-tenant data center model. The only difference is that we’re now buying the infrastructure and then leveraging our investments in space, power and connectivity to offer a low-cost solution.”

Greg Rusu, General Manager of Zunicore, a division of PEER 1 Hosting confirmed this trend:

“Over the last 2-3 months, we’ve had more and more mid-sized companies that started with Amazon or other cloud-only providers, bringing us entire system designs where each component (server or network appliance, its purpose, capacity, expected performance levels, bandwidth, latency, etc.) is very well thought through,” said Rusu. “These folks are asking ‘what do you have that will function in this design?’ sometimes irrespective of whether the component is virtual or physical. ”

Several factors drive these companies to a virtual private suite solution, such as:

  • Access to the hypervisor layer
  • Desire to manage oversubscription rates of physical resources
  • A mandate to lower costs
  • A need for increased performance
  • More control over infrastructure design

The ability to get a low-cost, high-performing and scalable infrastructure solution is very appealing. Really small companies can’t afford it, and the large companies are already doing something similar.  Mid-sized businesses are the perfect fit, and multi-tenant data center providers with a business cloud offering are in a unique position to leverage their investments in infrastructure and expertise to provide the solution.

Service providers should expect to see more of this need in the upcoming year.

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