What Is a Private Cloud? Why Private Clouds Are Changing the Game

If you’re anything like me, you watched a lot of TV as a kid. To me, TV programming was unmatched in the early aughts, and one of my favorite shows from that decade was Hannah Montana.

It followed Miley who, under the guise of Hannah Montana, lived a double life as a superstar and a “normal” teenage girl, giving her, as the theme song would say, the best of both worlds.

Although this premise may seem extremely unlikely in the real world, in a way, you can get to live that double life with what the hosting industry calls the private cloud.

A private cloud is a cloud service provided to a single organization by a cloud provider, as opposed to a public cloud which offers its services to multiple users over the internet.

Private clouds are changing the game, giving users the power of the cloud with the privacy and security of on-premises servers. If you want to learn more about this cloud model, stay tuned.

I remember when I first heard about the concept of the cloud. At that time, I knew it primarily from the viewpoint of storage. Apple had just introduced the iCloud. I can’t lie, it was a strange concept for my teenage brain to understand at first.

After years of storing pictures and videos on my computer or phone, I could now store them in some invisible place I’ve never heard of. But little did I know how much more the cloud could do.

Today, several variations of the cloud exist, from the public and private cloud to hybrid and multicloud architectures. The cloud enables organizations to scale and power resource-intensive applications better than any other hosting type could ever do.

Private cloud solutions allow companies to manage their own cloud infrastructure, with resources exclusive only to their operations.

Organizations seeking data privacy, greater reliability, and uptime are adopting private cloud solutions to meet their needs.

Owning a private cloud is almost like holding a private party at a hot new restaurant. The restaurant has a fun, innovative menu, drawing large numbers of guests. As more people pour in, the restaurant is jam-packed, and service becomes stagnant.

Your private party, however, is sequestered in a room upstairs, equipped with a private waiting staff and a cart of hors d’oeuvres. Drinks are flowing and food comes out hot and fresh without any issues. Your group has no idea about the chaos and high demand downstairs.

The private cloud is a similar experience. When you set up a private cloud infrastructure, you get dedicated resources and exclusive use for your organization. You get more privacy, reliability, and uptime for all your operations.

Unlike the public cloud, the private cloud is a cloud computing environment dedicated to a single user or organization. It can be either managed on premises or hosted by a third-party provider. This also means your resources are not made available to the public over the internet.

Here, I’ll break down the key differences between the primary cloud computing environments: private cloud, public cloud, and hybrid cloud.

Each of these cloud models has differences in architecture, management, and use cases. Since I think tables are a great way to compare and contrast characteristics, I list their traits below for your convenience.

As you can see above, the private cloud has a lot to offer compared to its counterparts. So it is a reasonable option to consider when purchasing cloud services.

It is good to note however that private cloud solutions are usually the second stop on the cloud buyer journey. The public cloud tends to be the entry point for cloud users because it is more accessible and less expensive — basically, with fewer strings attached.

I would advise building private or even hybrid cloud infrastructure once you are sure about your needs since they are a bigger investment than getting a public cloud plan.

Not surprisingly, one of the private cloud’s greatest upsides is in its name: privacy. It is from that central point of privacy and control that everything else about the private cloud flows. Below, I’ll dive deeper into its benefits to show you exactly what I mean.

Enhanced Security and Compliance

I don’t work in compliance. But based on conversations I’ve had with those who do, I have concluded that it’s tricky business. If not done properly, you can face several consequences, including fines and operational disruptions. Trust me, you don’t want to step on any toes in the compliance department.

A private cloud enables teams to avoid these consequences and better adhere to strict regulatory requirements, such as GDPR and HIPAA regulations. How? Well, it gives you greater control over your data and privacy.

Since private cloud infrastructure is exclusive to your organization, you can ensure all your operational data stays in-house and limit access to authorized users. You can also have more freedom with security tools you can add, building your own protection layer.

Customization and Flexibility

Who doesn’t love customization? I’m confident to say that the majority of us do. With the rise of buildable products, we can customize everything from burrito bowls to websites, adding a touch of personalization everywhere.

If you’re looking to continue this trend in your hosting environment, private cloud is the way to go. Private cloud allows you to tailor your private infrastructure to your needs, making it unique to your operations and needs.

The public cloud may allow you to choose what resource configurations you want, but that’s where the customization stops. Only you know what your business needs, and premade hosting increments may be too restrictive or stringent.

Leveraging the flexibility of the private cloud can help you create an architecture that meets your exact needs and expectations. And if any issues arise, you can fix them and add more resources on top of your infrastructure without migrating to a new vendor.

Performance and Reliability

Some of our favorite applications are built on private infrastructure. Google, in particular, powers parts of Google Drive, Google Docs, and YouTube on the private cloud. That’s because the private cloud not only improves data security but also performance.

The private cloud is an ideal structure for housing solutions that require high performance and reliability. Its dedicated resources are unique to your workloads, giving you just the right amount of power. While its redundant systems ensure your applications stay online.

Since you can have full control over your infrastructure, you can customize your cloud architecture and management to improve performance, uptime, and efficiency according to your company’s needs.

Cost Efficiency for Specific Use Cases

Another benefit of private cloud solutions is cost efficiency. The cloud was once considered an affordable alternative to dedicated hosting and bare metal servers in its early stages. But that’s not so much the case any longer.

If you own a business, cutting expenses where you can is always a good idea. Private cloud, albeit a high initial investment, can help you do so. In some cases, owning private infrastructure can be a cost-effective strategy, helping you save more money than you would with other hosting environments.

Businesses managing consistent, high-demand workloads can see value in private cloud infrastructure. Once you invest in the private cloud, your cost will most likely remain in the known bracket because you will have a set limit on resource usage. So you can experience fewer unexpected price hikes than you would with the public cloud.

This way, you actually pay for only what you need and say goodbye to unplanned expenses on your cloud cost sheet.

Having your head in the clouds isn’t always a great thing. But from a hosting perspective, the clouds have tons of practical use. The private cloud in particular has multiple use cases that leverage its enhanced security and high availability. I’ll share a few of its most popular use cases below.

Thankfully, there is no shortage of private cloud providers out there. So you can check off finding a cloud host on the to-do list and move on to the next step: finding the right solution for you.

If you need help getting your search started, I can help point you in the right direction. The following are the top providers in the market:

• AWS: The pioneer of cloud computing, AWS was once synonymous with the cloud. Although many others have joined the cloud competition since its rise, it still boasts the largest market share in the cloud computing industry. While it’s most popular for its public cloud offerings, its private cloud solution, Amazon VPC, has helped Samsung and Atlassian, among others, increase their security, save time managing their environments, and gain control.

• OVHcloud: This next one is a global cloud provider that specializes in cost-effective and performant cloud solutions. OVHcloud offers a hosted private cloud environment that is dedicated to your business. Its virtual environment is fully isolated, deploys quickly, and provides on-demand resources. Another highlight is that its physical servers meet stringent security certifications, so you can securely host critical data.

• OpenStack: An interesting highlight of OpenStack is that it’s accessible from various hosting platforms. This business model allows users to have more choices and select a web host that has the intangibles it’s looking for without worrying about the viability of the hardware. You can see a list of providers that offer its infrastructure offerings within their platforms.

Of course, these providers may not have all the features or characteristics you’re looking for. But researching them can help you better understand what you want and discover the host you need.

That might be a smaller host with more attentive support or a solution with on-site infrastructure offerings — whatever floats your boat.

Ahh, the inevitable has come — the downsides of our charming private cloud. It wouldn’t be a complete guide without discussing the challenges involved with this specific cloud model.

Hopefully, understanding its downsides will help you see clearly whether the private cloud is for your business.

Higher Initial Costs

Before jumping into any investment, you must consider the losses that may come with it. It’s like buying a house. Unlike rental properties, you get to customize your house, make it your home, and possibly get more space and security.

But then there are the upfront costs (i.e.. closing costs) and those unexpected expenses such as roofing repairs that could pile up at any moment. Upon thinking of those expenses, you will need to decide whether the investment will fit into your life. The decision-making process is similar with private cloud infrastructure.

The initial investment for a private cloud is typically higher than a public cloud because you’re getting a dedicated environment and possibly private servers on-site if you choose.

Private clouds also require ongoing maintenance, which can drive up your expenses. You will have to decide whether it will be a worthwhile long-term asset for your business.

Scalability Limitations

“To infinity and beyond” is one of my favorite Toy Story lines.

Unfortunately, this line doesn’t apply to the private cloud. Compared to the near-infinite scalability of public clouds, the private cloud lacks in this category.

Private clouds can meet the demands of resource-intensive solutions, but they have their limits. While with public clouds, you can continue to scale your resources depending on demand, private clouds have more set limitations due to the nature of their architecture (dedicated servers).

Complexity in Management

Like I mentioned above, private cloud infrastructure is a high-maintenance solution.

Like a newly adopted puppy, your infrastructure requires a lot of attention and management to function properly. And that responsibility falls on your business because it belongs solely to you.

Unlike with the public cloud, your provider doesn’t help you with management unless you purchase an additional managed service option with your solution.

If you don’t get managed services from your provider, you will need to hire a skilled IT team to manage and maintain it, since cloud infrastructure is highly complex.

Vendor Lock-In Risks

No one likes traps, unless you’re Freddy from Scobby-Doo (that guy was obsessed with trapping). But if you’re nothing like Fred, you need to hear this next drawback.

One of the biggest drawbacks of private clouds is a trap we call vendor lock-in. If that’s a new term for you, let me explain.

Vendor lock-in occurs when a business becomes too dependent on a single provider for their infrastructure and services and finds it difficult to switch to another provider.

Several factors can cause vendor lock-in, including:

• Contract terms
• Data format compatibility
• Expensive transfer fees
• Limited interoperability

If a provider no longer meets your requirements, vendor lock-in can make it difficult for you to switch. So you might end up stuck with increasing price hikes and lack of scalability — two of the primary reasons people switch.

Creating an exit strategy or reading over contractual obligations can help you avoid major mistakes when it comes to vendor lock-in, so you won’t ever fall into a trap again.

The private cloud is no impulsive buy. It requires a ton of research and consideration since it’s such a massive investment for any business. But don’t get me wrong. Private cloud infrastructure can be the perfect fit for many companies.

How do you find out whether it will work for your business?

The first piece of advice I would give is to seek professional consultation for your cloud strategy decisions. The cloud is a complex beast, which can give you a lot of power but also be a headache to manage.

You will have to consider your workload types, security needs, and budget when choosing a cloud environment. Based on those factors, you can see whether you want a more affordable public cloud solution or the private cloud, which can give you better security, reliability, and uptime.

In the words of Hannah Montana, the private cloud is like having the best of both worlds. It gives you the flexibility of cloud computing but also allows you to keep your privacy and control.

So you can give your demanding applications what they need, and secure your data and systems while you’re at it.

But as with fame, the private cloud does come with a price. It is a higher initial investment than the public cloud and does require ongoing maintenance.

If you’re thinking about implementing private cloud infrastructure, getting in contact with a professional will help you draw the line on whether you should go for the private or public cloud — or maybe even both.