The private cloud changes an IT organization’s approach to resource management from discrete hardware to virtualized pools of shared resources, including servers, storage and networking. By virtualizing all IT resources, IT staff sees increased resource utilization rates and dynamic distribution of resources toward high-priority applications.

These shared resource pools are abstracted into logical building blocks that consist of storage, network and server units, effectively creating virtual data centers. Based on business demands, these resource containers can be constructed to provide specific service-levels or meet particular business needs, or they can be divided by logical business units or functions (for instance, sales, finance or R&D). By standardizing on a set of well-defined offerings, organizations can evolve toward a policy-driven approach to computing.

Continue reading: Evolutionary Path to IT as a Service