A private cloud is a cloud deployment that is dedicated for a single customer or organization and resides in the data center in organization’s premises or hosted in the data center of a private cloud service provider. Unlike public clouds that share same infrastructure of the public cloud service provider and is consumed by multiple customers, private cloud confines entirely to the owner business domain. It may be managed by either the business itself through the in-house IT team, or managed by the service provider or a 3rd party administrator. Private clouds offer enhanced security compared to the shared public cloud that is accessed by multiple customers. Private cloud offers other advantages also similar to public cloud, like automation, scalability, flexibility, fault tolerance, high availability, rapid and on-demand provisioning etc.
Public clouds have the cost advantage during initial stages over private clouds due to the former’s sharing of infrastructure feature. But there are other factors related to the nature of the business and its IT requirements that make private clouds suitable for them over public clouds. A good percentage of SME and big businesses need a cloud platform that is dynamic, mission-critical, and highly secure and also that offers enterprise level scalability and up-time. A private cloud that is well secured behind enterprise firewalls and on which the organization has direct control, satisfies these requirements. Organizations that have existing on-premise data centers can transform them to host their private clouds without much effort to fulfill the above needs.