"This is a matter of what do companies want? Do they want to set it up on their own? Do they want to just rent space and have someone else take care of it? There's no right or wrong. It's just a different approach," he added
A lot of enterprises will base their decisions on which solution can significantly cut their anxiety about cloud computing performance, security and other issues.
A recent study by IHS showed that 73% of IT executives believe cloud providers are hiding performance problems.
"The enterprise IT folks are being very, very cautious about their migration to the cloud," Jagdish Rebello, an analyst with HIS, recently told Computerworld. "They see the cost benefits but when they look at reliability and security, there is essentially a fear of going there wholeheartedly."
HP hopes those IT executives will show a big interest in going to a cloud they can control.
"I think the big enterprises, particularly the Fortune 500s, will be looking at this architecture," Rebello said today. "It's a play for them to go into the private cloud. They're concerned about the security of their data being on somebody else's servers, so they are going to be more interested in the private cloud."
This is a different play into this market, as opposed to what Amazon or Google offers. If you look at this market you see HP trying to reinvent itself," Rebello added.
For any enterprise IT shop, the private cloud can offer advantages. The company controls its own security with a private setup, and IT knows exactly where it's data is sitting. The IT operation has complete control of the systems.
A private cloud, though, will also require regular investments, noted Rebello. The owners will have to hire people to run it and will be responsible for system upgrades, virus protection and other security issues -- and any other major problems when they happen.
"It's a question of control versus cost," said Rebello.
He did note that HP's use of OpenStack should make the offering more attractive to IT administrators.
"I think the fact that HP is embracing OpenStack makes the IT guys think that what they create for this system can be migrated to other systems because it's open source," said Rebello.
"It's not proprietary for HP anymore so they can migrate it to other architectures. They see the benefits of open source and the benefits of having security of a private cloud and the security of having a big player like HP helping them with their solutions," he added.
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