The Cloud offers cost benefits that may rival traditional datacentre deployments, though Hitachi Data Systems (HDS) said it is not without its risks.
Despite its name, A/NZ solutions director, Andrew McGee, points out the public Cloud is actually owned by private companies, which comes with the normal commercial challenges.
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"Long-term cost, risk of data loss, and security and compliance issues are among the reasons why organisations opt to keep infrastructure on premises or in a co-location facility," he said.
McGee also points to industry events such as the collapse of Nirvanix and an outage at Amazon Web Services as pitfalls of pursuing a pure public Cloud strategy.
The case of Nirvanix was notable in users only had two weeks to retrieve stored data before the provider turned off its machines for good.
McGee said hickups such as these continue to make on-premise and outsourced private Clouds viable alternatives to the public one.
"This has also led to the rise of vertical 'community Clouds' that cater for specific industries such as government, science and finance," he said.
Opportunity in the challenge
Whether it is the private, hybrid or public Cloud, the transition is often not an easy one for businesses.
McGee said it is due to skills and technology to manage a collection of both virtualised and non-virtualised applications being required.
"They must automate the management of an environment where technologies such as virtualisation that, while creating agility, increase the complexity of the management challenge," he said.
In order for the terms of service level agreements (SLAs) to be consistently met, McGee said the level and predictability of performance must also be raised.
"This represents a market opportunity for partners to provide managed services wrapped around a Cloud offering," he said.
Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.