Posted on 23.7.2024

What is Private Cloud? Definition, architecture, and examples

Private cloud infrastructure emerged as a solution to some of the drawbacks of public cloud services. Although the private cloud has similarities to public cloud architecture, it distinctly provides a proprietary framework dedicated to a single organisation.

Cloud services are agile and scalable, and many companies have already made the choice to move away from outdated legacy hardware and into the cloud. However, as cloud services, digitalisation, and data security requirements evolve, it’s essential to understand the features and benefits of private cloud architecture to discover if it’s right for your business.

Definition of a Private Cloud

A private cloud is a cloud computing architecture dedicated to a single organisation. This cloud infrastructure includes essential resources like CPU and memory that can be provisioned on demand. Private cloud infrastructure is often employed by corporations and enterprises but it’s an option available to businesses of any size. 

What is the cloud?

Cloud computing offers scalable IT resources delivered on demand over a network. Although the concept has been around for a long time, cloud computing really took off in the early 2000s. It evolved into an essential business tool that powers the digitalisation of most organisations today. 

Cloud resources include servers, storage, databases, networking, software, analytics, and intelligence. A cloud computing provider also delivers expertise, management services, control, and customisation. There are three main types of cloud services: public cloud, private cloud, and hybrid cloud.

Differences to public cloud

Private cloud service providers offer dedicated hardware. In a private cloud, a single organisation uses and controls IT resources, including memory, data storage, and CPU, but the private cloud provider maintains the hardware and infrastructure.

Public cloud services are accessible on demand and completely scalable; however, many customers may share the physical resources hosted in the same hardware environment. 

Compared to hybrid cloud

Private cloud resources are restricted in size by the chosen hardware and infrastructure. In contrast, a hybrid cloud infrastructure combines a company’s private cloud with a public cloud service that absorbs excess demand. The private element may be used for more sensitive operations requiring greater security, with the public cloud element picking up fluctuations in resource usage. 

A side-by-side comparison of cloud types

Public CloudPrivate CloudHybrid Cloud
SecurityShared securityMost secureShared in part
ScalabilityHighly scalableLimited to the contracted server nodesAttains scalability on public cloud
CostCost-effective and easy to optimiseLarger financial commitmentCan reach parity with public cloud
ExpertiseNo specific requirementsExpertise in provisioning resourcesDependent on provisioning

Architecture of a Private Cloud

Private cloud architecture is similar to public cloud provision but with the benefit of isolation or being a “single-tenant” in a private hardware environment. 

Dedicated resources: Dedicated hardware that secures a private corner of the cloud and avoids the public cloud’s shared security. Private cloud customers decide how their resources are allocated between virtual machines, users, and applications. 

Virtualization: IT resources are pooled by a provider and then allocated to multiple virtual machines as the user requires. Virtualization optimises hardware use and resource efficiency across multiple users and applications. 

Management tools: Management software or services from a provider give cloud administrators control so they can optimise security and resource utilisation. 

Advantages of private cloud architecture 

Private cloud infrastructure allows companies to take advantage of the cloud’s benefits but with additional security, control, and customisation.

Security: Private cloud customers can define their level of privacy and security by how they use their resources and don’t have to share security or hosts with other cloud customers. This can ensure compliance with complex data protection and regulatory standards. 

Control: A private cloud lets the business choose exactly how to use its computing resources by allocating and deploying cloud servers as necessary. Resources management may also be automated using tools like Terraform and Ansible. 

Customisation: Depending on the provider, a private cloud may allow extensive customisability on hardware and software, including applications, add-ons, and custom developments.  

Drawbacks of private cloud architecture 

Cost: A private cloud generally requires an upfront commitment to a set amount of compute resources, as host servers often come in fixed-size nodes. However, it offers privacy, security, and customisation and comes with the support of dedicated cutting-edge cloud experts. 

Expertise: A private cloud provider will maintain the hardware and infrastructure and offer support. However, a private cloud customer is responsible for provisioning their resources according to their needs, which can lead to inefficiencies without sufficient in-house expertise. 

Scalability: Private cloud customers are limited to a set amount of resources per their contract. This can be increased as needed but with a much greater lead time, as the provider needs to procure and allocate the hardware to the customer. Allocated hardware infrastructure limits immediate private cloud resources unless a hybrid cloud solution is adopted, in which a customer can also use public cloud services in periods of peak demand. 

Real-world Examples of Private Cloud Implementation

There are numerous reasons to choose private cloud architecture. Here are some of the drivers for this cloud computing option and the industries that often benefit from private cloud services. 

Data privacy and compliance

Limited access to private cloud hardware increases security for organisations that handle sensitive data and have complex data protection, compliance, and regulatory requirements. These elements may be critical to healthcare providers and financial organisations. 

Private cloud storage

The private cloud may offer secure and dedicated data storage, again limiting access to sensitive data. Banks, healthcare providers, and organisations that handle sensitive customer or government data can benefit from this. 

Hybrid cloud adoption 

Commonly, businesses choose hybrid cloud for two reasons: Firstly, they’ve used public cloud in the past and now need additional private resources. Secondly, they initially migrate to a private cloud but find a growing need for extra flexibility, which can be achieved by utilising public cloud services.

As a further example of hybrid cloud use, a company may store sensitive customer data in a private cloud with limited access and security sharing for greater data protection. While also deploying public cloud resources for less data-critical operations such as in-house software development. 

Private Cloud Benefits by Industry

IndustryRequirementsBenefit
HealthcarePrivacy, security, and isolated servicesRegulatory compliance and data protection 
FinanceSecurity and complianceCost-effective security, regulatory support
EducationCost and ease of digitalisationLess expensive than capital investment, greater flexibility
GovernmentPrivacy, control, costControllable, isolated, and customisable

Private cloud solutions can benefit organisations that handle sensitive data and must meet regulatory needs, but private and hybrid cloud computing services can also benefit many other kinds of businesses. 

Conclusion

Private cloud architecture addresses public cloud provision worries, such as data security and regulatory requirements. Choosing private cloud services from a trusted provider can deliver modern infrastructure with both privacy and scalability with the option to utilise public cloud resources on demand and for less sensitive applications.

At UpCloud, we offer private cloud security, performance, and flexibility, supported by a white glove service. We offer the best of both worlds for hybrid cloud solutions and a two-month free migration period. 

Consult with our experts to discuss your specific requirements and our award-winning public, hybrid, and private cloud solutions.

Janne Ruostemaa

Editor-in-Chief

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