Private Cloud: Definition, Architecture, Benefits, and Limits

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What is a private cloud? It's a form of computing service in which resources are available to authorised members of a specific organisation or company rather than the general public. 

Private cloud services stem from hardware, like a server. 

In a private cloud setup, your services and infrastructure exist within a private network, and the hardware and software are exclusive to your organisation. Typically, the cloud is physically located within your organisation or your data centre. 

Anyone can use a private cloud. Typically, however, organisations with both deep pockets and a strong need for control and security are the ones who use them. Banks, government agencies, and healthcare organisations typically rely on private clouds. 

Don't think the private cloud services market is small, however. In 2020, the market size for private clouds was over $60 billion. All companies need control and security. If private clouds make both of those goals possible, more organisations may take the plunge.

How do private clouds work?

You want your customers and employees, no matter where they are located, to access your services. But you don't want interlopers snooping. A private cloud infrastructure makes these two goals possible.

Handle this with:

  • Existing equipment. Your private cloud is based on resources and infrastructure you already have within your headquarters or data centre. Rather than asking employees and customers to log directly in to servers within your building, you place capabilities in a private cloud. They can do the same things, but their connection points change. 
  • Infrastructure as a service (IaaS). You partner with a company and tap into their storage and server capabilities. They provide the hardware and software you need to get started on your cloud environment.
  • Platform as a service (PaaS). You partner with a company to use their existing cloud products. You might use your own hardware, but they will provide the software. You don’t share the version you buy with anyone else.

Organisations use private clouds because they want security and control. No matter what method you choose to build a private cloud, you’ll have the ability to alter and shape it to suit your needs. You won’t share the product you have with anyone else. 

Types of private cloud services

Any cloud product stems from a great deal of computer programming and know-how. Since private cloud infrastructure is personalised, it's essentially infinitely customisable. But a few basic types exist.

Your private cloud could be:

  • Hosted. You pay an organisation to configure your cloud and ensure the software remains up and running. You may, in some cases, need to address your hardware and keep your server up-to-date. 
  • Managed. Your vendor partner handles every part of your private cloud, from the hardware to the software to the upkeep. You don’t do anything at all to make the process work except pay the bills. 
  • Virtual. You pay an organisation to build and maintain a private cloud for you. But this organisation may have several different types of clouds (including public versions) available. In essence, they promise to keep your information in a walled garden. 

Private clouds vs. other clouds