Private cloud is cloud infrastructure operated solely for a single organization, whether managed internally or by a third-party, and hosted either internally or externally.Undertaking a private cloud project requires significant engagement to virtualize the business environment, and requires the organization to reevaluate decisions about existing resources. It can improve business, but every step in the project raises security issues that must be addressed to prevent serious vulnerabilities.

Self-run data centers[98] are generally capital intensive. They have a significant physical footprint, requiring allocations of space, hardware, and environmental controls. These assets have to be refreshed periodically, resulting in additional capital expenditures. They have attracted criticism because users "still have to buy, build, and manage them" and thus do not benefit from less hands-on management,essentially "the economic model that makes cloud computing such an intriguing concept".


The benefits of this fenced-in cloud computing model appeal largely to many enterprise-level organizations. Not only can an organization find higher security and privacy through private clouds, but they can also find additional control over how the cloud works into the company’s overall network, offering these key benefits:

Security and privacy:

Public cloud services already utilize a series of security measures, but private clouds offer an even stronger security by designating specific resources with access-restricted connections. What this means is that only individuals located behind the organization’s firewall can access the resources made available on the private cloud.

Increased reliability:

Creating a virtualized operating environment effectively protects against individual failures of personal computers and storage devices. Virtual storage is backed up in redundant fashions, drawing data from unaffected resources in the event one server or storage point fails.

Cloud bursting:

Sometimes an organization experiences spikes in demand for private cloud usage. Many third-party private cloud vendors offer cloud bursting, switching non-sensitive functions to public cloud servers to not only free up more space in the private cloud, but also increase traffic capabilities.