What happened is that many traditional enterprise vendors started to see the cloud as a threat, said Ronald Schmelzer, managing partner with ZapThink. The public cloud threatened to permanently move IT resources outside of organizations, so those vendors jumped on the cloud bandwagon with “private” cloud.

But that, he said, kills the benefit of cost savings. “If you own the cloud, you’re not going to see any economic advantage. Anyone who says they are doesn’t understand it or is being misleading.”

Read the entire article at http://www.itworldcanada.com/news/public-vs-private-clouds-how-cios-can-decide/142976.