Private Cloud

What is a private cloud?

A private cloud is a cloud computing model offering cloud services and resources for a single company. Also known as a corporate cloud, a private cloud can live on-premises or at a third-party facility. 

While private clouds are often more expensive to build and maintain, they offer high levels of control and security. Enterprises or companies dealing with confidential information often prefer a private cloud to comply with regulations. 

Companies use cloud management platforms (CMP) to manage and control private, public, multi, or hybrid cloud environments. These tools allow for analytics and insights into optimization, security, and costs. 

Types of private clouds

Each type of private cloud provides varying degrees of ownership, control, and management. The kind of private cloud a company chooses depends on its industry, size, and needs.

• On-premises private clouds are owned and monitored by the organization at their own data centers. While these offer complete control and customization, they require a large upfront investment. Plus, local IT staff must configure the servers and take responsibility for system administration. 
• Managed private clouds physically reside in the vendor’s or the organization’s data center, but this option allows a hands-off approach. The provider manages and tracks all aspects of an organization’s cloud infrastructure–including hardware, software, and networking. This typically involves higher monthly fees.  
• Virtual private clouds (VPC) offer the control and security of a private cloud but within a larger public cloud environment. VPC software is a cost-effective solution that saves companies the time and hassle of buying and managing their own infrastructure while still providing the benefits associated with a private cloud.

Benefits of a private cloud

Companies turn to private clouds when they want the security of a dedicated, isolated cloud environment. Other benefits include:

• Improved customization and control. Organizations have complete flexibility to customize the hardware and software of a private cloud. They can adjust resource allocation, manage applications, and configure the network to meet their specific requirements.
• Increased predictability. Since they have dedicated resources, private clouds tout consistent service levels and low latency. Companies on a private cloud don’t have to worry about other organizations using up bandwidth.
• Enhanced compliance. Companies choosing a managed or virtual private cloud option easily maintain regulatory compliance. This is particularly helpful for companies in heavily regulated sectors, like healthcare or finance.
• Affordable cost. Public clouds are usually the cheapest option, but private clouds are more cost-effective in some situations. A private cloud might make more sense for enterprises with heavy and consistent data use.

Private cloud security best practices

Some organizations outsource private cloud management to a managed hosting provider; otherwise, the end user's organization is responsible for the security of its private cloud. Some ways a company’s IT team can protect its data include:

• Protecting the servers. Organizations should protect on-premises servers with physical barriers. For instance, the company can lock the server room and set up surveillance cameras.
• Encrypting data. Companies should ensure that sensitive data is encrypted both at rest and any time the end user transfers it into or out of the cloud. When using a cloud service provider, the end-user organization should supplement security with additional measures led by its own IT staff members.
• Creating an identity and access management (IAM) policy. An organization should identify its types of users, what rights each type of user should have, and what happens when a user’s privileges are revoked. An IAM software plan helps ensure cybersecurity and prevent breaches. 
• Training staff. Security starts with the cloud’s end users. Companies should train employees so they feel confident accessing the cloud safely. For most companies, this training should include information about common threats like phishing and access control protocols.

Private cloud vs. public cloud

Companies must compare available options to decide whether a private or public cloud works best for them. 

A public cloud model uses a third-party provider to deliver cloud services online. Typically, this is offered in a subscription model. The cloud service provider (CSP) owns and maintains the infrastructure, and many end-user organizations use it. It’s often compared to an apartment building shared by different tenants. 

A private cloud, on the other hand, is used exclusively by a single organization. Sometimes, a third-party provider manages a private cloud. However, the end-user company still has its own cloud and never has to share resources with others. This makes a private cloud ideal for companies needing security assurance. If the public cloud is like an apartment, the private cloud is like a standalone house. 

Make sure your data stays safe. Read more about cloud security and its challenges and benefits.