Enterprise cloud storage has traditionally been the realm of hard drive manufacturers and large storage (SAN) companies, and has almost always been on-site. With the advent of public cloud provide AWS and its Simple Storage Service (S3), many more interesting things are happening with enterprise cloud storage. More aggressive storage companies are looking for ways to bridge that gap because customers are eager to consume storage in both on-prem and cloud environments. Just look to the home storage market: manufacturers of small home NAS devices offer cloud-based storage add-ons, and some offer backups to S3.
The cost is low to develop technology that will backup small amounts of data to S3. But the cost becomes prohibitive when the size of backup sets reach terabyte or petabyte sizes and require huge amounts of bandwidth to transfer for testing purposes. Private enterprise cloud storage can be a perfect solution for this challenge.
In the world of enterprise IT, it's no secret that data is king. Data underpins virtually any IT strategy. Traditional enterprise cloud storage companies and AWS both know this. Data is the 'hook' that they use to make leaving their SAN offering or S3 storage repository very painful and costly. If your company is looking to develop a technology that integrates with AWS from on-prem or sits on AWS entirely, the costs to move large amounts of data or spin up many instances in the cloud for development and testing can be expensive.
Furthermore, if you want to test the speed and reliability of your platform in moving data into and out of S3, the bandwidth costs (not to mention restrictions) can be problematic. Private enterprise cloud storage solves these issues by putting a 'public cloud-like' environment on your local LAN. This means that you can develop and test your apps and technology stack at 'line speed' without the added cost for bandwidth and data storage. It may not be practical to test the movement and fidelity of 100TB of data or a petabyte of data into S3 over your ISP connection, but it is perfectly practical to do this on your local LAN. Keep in mind the importance of putting careful thought into how you design for storage in the cloud.
(See what to consider when working with the Eucalyptus Walrus storage and the Eucalyptus Storage Controller.)
In a hybrid cloud scenario, this also gives you the option of encrypting data locally, in your private enterprise cloud storage environment, before it is shipped off to the public cloud. This is huge in terms of offering a secure product or service to end-users who are leery of the public cloud. If your primary focus for your product or service is on premise with only backup (or limited integration with) to the public cloud, it makes even more sense to develop and test on a private cloud.
In summary, if you need to develop any sort of product or service that integrates with the public cloud, and you want to be able to develop and test at local LAN speeds, a private enterprise cloud storage solution is an excellent choice. Furthermore, if you have large data storage and transport needs, the private cloud becomes the only reasonable solution which gives you the best performance and no additional bandwidth cost. Look to the private cloud for your development and testing needs.