Microsoft's Rolf Harms and Michael Yamartino recently published a white paper detailing the relationship between on-premise and hosted data centers and cloud computing services. According to the report, using hosted solutions is more economically and technologically viable for businesses, as on-premise data centers can rarely compete with hosting providers.
The report said that public clouds and virtual server hosting provide better options than on-premise counterparts because large-scale adoption of the technology will create such a demand that locally managing a data center will sap too many resources from a business.
Hosted solutions, on the other hand, devote their entire operation to constantly providing users with the newest technology, best management and control panel software, efficient virtual server management and cloud computing flexibility.
"Public clouds have all the same architectural elements as private clouds, but bring massively higher scale to bear on all sources of variability," the white paper said.
According to a recent report from ZDNet, Microsoft's report should be taken seriously as an indicator that private clouds could be limited when compared to public versions of the technology. Because Microsoft has invested in both sides of the cloud, the company's study can be considered fairly objective, ZDNet reports.