A private cloud is a cloud computing architecture in which IT services are delivered via private IT infrastructure for the exclusive use of a single enterprise. To manage a private cloud internal resources are typically used.

Private cloud and virtual private cloud (VPC) are phrases that are frequently used interchangeably. A virtual private cloud  or VPC is a private cloud that uses the infrastructure of a third-party cloud provider or a private cloud provider, whereas a private cloud is established over internal infrastructure.

Private clouds are utilized by businesses that prioritize security, compliance, and data protection. Private clouds are implemented behind firewalls and provide the enterprise with strong IT security. If the firm already has a data center infrastructure, the private cloud can be implemented in-house.

However, to have in-house private clouds, the organization must invest extensively in the infrastructure's operation and maintenance, which might result in significant capital expenditure. This can be a significant setback for firms looking to save IT expenses. Private Cloud providers or data centers may also provide private cloud services.

Some examples of Private Cloud Services are banks and financial institutions, major enterprise organizations, government agencies, and so on, where only authorized users have access to the system.


Types of Private Cloud

Different types of private cloud provide various services. When a firm employs a private cloud for infrastructure as a service (IaaS), for example, the cloud may contain storage, networking, or computation services.

There are also other forms of private cloud hosting available. Software-only platforms, software-and-hardware packages, and hosted or managed private clouds are examples of these. The private cloud server may be housed or maintained on the customer's premises or in a vendor's data center.

Virtual private cloud: Unlike traditional private clouds, the resources in a virtual private cloud exist in a walled-off area on a public cloud rather than being housed on-premises.

Hosted private cloud: This sort of private cloud is hosted on-premises or in a data center by a distinct cloud service provider, but the server is not shared with other companies. The cloud service provider is in charge of configuring the network, maintaining the hardware, and keeping the software up to date for the private cloud.

Managed private cloud: In this form of private cloud, a private cloud provider not only hosts a private cloud for an enterprise but also manages and monitors the private cloud's day-to-day operations.


Benefits of Private Cloud

Total system control, resulting in stronger security: A virtual private cloud offers total system control and increased security through dedicated hardware and physical infrastructure that’s used exclusively by the company that owns it. 

Improved performance: Because the hardware is dedicated and not shared with any other business, workload performance for cloud services is never impacted by another company running resource-intensive workloads on a shared server or a public cloud service failure.

Long-term cost savings: While establishing the infrastructure to enable a private cloud might be costly, it can pay off in the long run. If a company already has the necessary gear and network in place, a private cloud can be far more cost-effective than paying monthly fees to use someone else's servers on the public cloud.

Scalability: If a company's existing hardware resources are saturated, it can quickly add more. When an organization's expansion is temporary or seasonal, it can migrate to a hybrid cloud solution, incurring minimal use expenses by accessing the public cloud only when necessary.

Also read: Types of cloud managed service


Why a Private Cloud?

Because the owner of a private cloud retains entire control, companies may not only guarantee better security, but they can also benefit from superior reliability and uptime than a public cloud can provide.

Here are some instances of how a private cloud might benefit a business:

Specific security or compliance requirements: A private cloud may be required to achieve compliance for enterprises subject to regulatory compliance standards. Similarly, a business may opt to store sensitive data in a private cloud to maintain greater control over security.

Flexibility to run any application- Private clouds can be used to run any application or service, including websites, web application backends, virtual desktop infrastructure, big data and machine learning applications, and databases. They are particularly suited for organizations that have diverse infrastructure needs that they would prefer to run on single-tenant hardware.

Technical expertise: Running a private cloud necessitates a higher level of technological commitment , Enterprises that are adept in handling hybrid environments and are confident in their technical capabilities are ideally positioned to benefit from a private cloud.