What Is a Private Cloud?

What Is a Private Cloud?

If your organization needs to meet high-security compliance regulations or needs a cloud environment that can run multiple functions without downtime, you should consider private cloud solutions, like A private cloud is a cloud service hosted in an isolated environment for a single business entity. It gives organizations total control of their data, resources, and applications.

In this article, we will discuss what a private cloud is and how it can improve business operations.

What Is A Private Cloud?

It is a cloud computing service hosted on the internet for a private internal network. It is hosted exclusively for the needs of a single business entity. Essentially it is the same as an internal or corporate cloud. However, it offers the same features and advantages as a public cloud, like agility, elasticity, and scalability but through proprietary resources.

Most large corporations choose private over public clouds because this can help them comply with regulatory requirements and policies. Others choose private because they work with classified documents, intellectual property, bank information, personally identifiable information (PII), financial records, or other personal and sensitive data.

How Does A Private Cloud Work?

It is a single-tenant or isolated domain. With this, only one customer can access and control all the resources. The environment consists of resources linked from different servers using virtualization. Virtualization enables the distribution of hardware across multiple users and applications.

Cloud providers develop private clouds with the same technologies as other clouds (public and hybrid clouds). But, these are only for specific organizations and not the general public. It also ensures that the organizations that use it are adequately isolated from each other on the cloud. They can be hosted on-site in the client's data center or on the cloud provider’s infrastructure/off-site data center. The organization that owns the cloud is in charge of managing it. However, they can contract with the service to manage it partially or completely.

Types Of Private Clouds

Virtual Private Cloud (VPC)

A virtual private cloud is a private environment within a public cloud service that allows an organization to run its services isolated from other users of the public cloud. It creates a hybrid environment within the public cloud. Even though other people share the server, the virtual environment keeps their resources, data, and activities private and secure from other users.

Managed Private Cloud

A managed private cloud is a single-tenant environment. It is hosted exclusively for a select organization. Maintenance and configuration of this model are outsourced to a third-party vendor.

Here, the private cloud is hosted on the cloud provider's infrastructure. However, vendors also manage cloud services for on-site private clouds.

Managed private clouds allow you to configure settings and features the way you want. It provides security benefits, but it is more expensive than self-managed facilities.

Hosted Private Cloud

Service providers in this model offer cloud servers in their data centers. They handle all aspects of the cloud for the organization. The service provider sets up the network and performs regular maintenance and upgrades, but a single organization occupies the server. They install security features and offer online management. They may also manage the software applications in the cloud.

On-Premise Private Cloud

In this model, users host a cloud environment within their organization.  For an on-premise or on-site option to run successfully, the organization must have an internal data center to host the cloud server. Having it on-site is very secure. The reason is that it is hosted and managed by the company's IT department. There is less risk of exposing sensitive information to third parties. The organization, therefore, has full power and control over the security, structures, and scalability of its servers.

Examples Of Private Cloud Providers and Their Solutions

Hewlett Packard Enterprise (HPE)

HPE offers private and virtual private cloud services. Its private cloud package offers maintenance, hardware, and software.

HPE solutions include  Helion Cloud Suite software, Helion CloudSystem hardware, Helion Managed Private Cloud, and Managed Virtual Private Cloud services.


VMware offers private and hybrid cloud management. Its services include the vRealize Suite cloud management platform and the VMWare Cloud Foundation Software.

Dell EMC

Dell EMC provides a variety of cloud hosting and management services. From virtual private cloud services and cloud management to cloud security software.

IBM (International Business Machines)

IBM’s solutions include IBM Systems and IBM Storage, IBM Cloud Managed Services, Cloud security tools, Cloud Manager, and Cloud Orchestrator.

Red Hat

Red Hat offers hosted and managed private cloud infrastructures. They provide deployment and management services. Red Hat’s solutions include OpenStack, Gluster Storage, and Red Hat Cloud Suite. Other popular private clouds are Microsoft, Oracle, Cisco, NetApp, and Amazon Web Services (AWS).

Advantages of Private Cloud

Enhanced Security

It offers enhanced security because it operates on an isolated network. Your computer system, servers, and applications are not visible to any other user. Compared to other cloud platforms, you do not share resources. Thus, the service allows you to enhance your security to prevent unauthorized access. You can also create separate cloud accounts for each department in your organization.

Although security in the public cloud has improved with the advancement of technology, your organization still has to comply with high-security regulatory standards. If your company is a financial or healthcare institution, you have access to confidential information. Only a private cloud can help you meet the necessary security regulations and ensure data privacy.

Data and Disaster Recovery

The architecture provides the resources and procedures to recover lost data or continue suspended programs. It can handle heavy workloads without downtime. It is available 24/7. Additionally, it allows you to recover data and other functions in the event of human error, cyber attack, computer system failure, or natural disaster.

Complete Control Over Resources

It gives your company complete control over the cloud resources, data, and applications. Your organization controls and manages hardware setup, security services, remote access privileges, and storage.

Customers have the freedom to customize the server, settings, hardware, and software in the way that best fits their company.

Customers can make system upgrades when they want.

Limitations of Private Cloud

There are a few disadvantages of private networks that may discourage potential users. Some of which are listed below.

  • High purchasing and installation price
  • Expensive to manage and maintain
  • Requires expert technical know-how to set up and operate
  • Virtual private clouds do not give full control
  • Limited flexibility

A Personal Virtual Lockspace

If you're looking at choosing private cloud solutions for your business, you have several options to pick from. Weigh the tools, features, and benefits of each service against the possible limitations. If the benefits tip the scale, then go for it.

Most organizations do not have the technical knowledge and skills to configure, operate and maintain a this cloud environment. However, cloud providers and managed services provide all forms of expertise,  management, maintenance, consultation, and support from day one. With the right management services, cloud service experts can develop a cost-effective and reliable hybrid cloud architecture for your organization.

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