Some enterprise organizations such as Morgan Stanley are building Private Clouds. What is the reason? In their view, Public Clouds still have security and reliability concerns. While addressing some needs of how employees work, Private Clouds will have significant costs affiliated with their development, deployment and support. Companies replacing (or augmenting) legacy systems with Private Clouds are substituting one high cost solution with another. There are more than higher costs at stake for these deployments.

These organizations instead of focusing on innovation that is core to their business are spending valuable resources on building-out technology. This is akin to reinventing the wheel, over and over.

As the web, customer, partner, and vendor engagement methods evolve so must technology change. Therefore continued investment in Private Clouds is an unsustainable model.