What is Private Cloud? What is the Difference from Public Cloud?

Cloud computing has become an integral part of many business processes. As traditional solutions become expensive and insufficient to meet today’s needs, companies have begun to prefer cloud services. When deciding to use a cloud environment, organizations are faced with private, public, and hybrid cloud options. So, what is private cloud, and how does it differ from other types? Let’s take a look.

What is Private Cloud?

Private cloud, or a dedicated cloud, is a cloud environment prepared for the exclusive use of a single organization. Companies can access the technologies they need through cloud computing, but using a public cloud environment may not be preferable when data security is a priority. In such cases, companies prefer a cloud environment dedicated solely to their own use.

What Are the Other Types of Clouds?

Before delving further into private clouds, it is essential to explain the other types of clouds. This will provide a clearer understanding of why private cloud might be needed.

Public Cloud

Public cloud environments are open for everyone to use. Multiple companies use the cloud environment on the same hardware. This does not mean that they can access each other's data. Companies can use the cloud services they need with lower costs and effort. However, since the entire management of the cloud is handled by a third-party provider, companies working with sensitive data must take precautions.

Hybrid Cloud

Hybrid cloud combines both public and private clouds. It is often preferred by companies to balance costs and workloads. For scenarios with lower security risks, such as mail services or internal communication platforms, public cloud solutions are preferred, while private cloud solutions are used for sensitive data like financial records. Both types can work together harmoniously.

To better understand the difference between cloud environments, it’s helpful to know about single-tenant and multi-tenant concepts. These concepts, translated as single-tenancy and multi-tenancy, refer to the architecture of the cloud environment or system. Private clouds have a single-tenant infrastructure, meaning the infrastructure is exclusively used by one tenant. Public clouds, with multi-tenant architecture, allow multiple tenants to use the same infrastructure independently. This concerns how the cloud infrastructure is utilized.

How Does Private Cloud Work?

Private clouds are environments accessible by only one user. Here, the user is not an individual but an organization or a single customer in the case of hosting services. The private cloud environment is typically hosted within the company (on-premise), but it can also be hosted in a third-party provider’s data center. The management of a private cloud can either be handled by specialists within the company or partially or entirely delegated to a service provider.

Companies can host their own cloud infrastructure or opt for private cloud solutions from cloud providers like Amazon Web Services, Microsoft Azure, or Google Cloud.

Private Cloud Architecture

Apart from being dedicated to one party, private clouds function similarly to other cloud environments. The goal is to present physical hardware resources efficiently and in a scalable manner to the user through virtualization technologies. Management and automation software ensure the cloud environment operates at maximum efficiency.

Virtualization

Virtualization involves using software to divide physical hardware for different purposes. Resources like memory, storage, and processing power can be allocated between virtual machines according to needs. Virtual machines can be scaled as required, though limited by the physical hardware capacity.

Virtualization allows for more efficient use of resources, reduces infrastructure costs, and provides quick scalability. Examples of virtualization solutions include VMware, Citrix, Microsoft Hyper-V, and Oracle VM VirtualBox.

Management Software

Management software provides system administrators with the necessary tools to control cloud infrastructure and applications. Puppet Enterprise, AWS CloudFormation, and Google Cloud Deployment Manager are examples of such software.

Automation Software

Automation software enables resources in the cloud environment to be allocated without the need for human intervention when required. Examples include Red Hat Ansible Automation Platform and Microsoft Azure Automation. In cloud environments, management and automation processes can be managed from a single point using cloud management platforms (CMPs).

Types of Private Cloud

There are four types of private clouds. They can be hosted within the company or in another data center. Other options include managed private clouds and virtual private clouds.

On-Premise Private Cloud

The cloud solution can be hosted within the company. An initial infrastructure investment is required, and a team must be established to manage the cloud. While it may seem more costly compared to other options, it provides full control over the cloud.

Hosted Private Cloud

These private clouds are hosted in a third-party data center. The provider ensures that the purchased or rented hardware is operational, while the management process is the responsibility of the users.

Managed Private Cloud

Managed private clouds have the same features as hosted private clouds, with the added advantage that the cloud management is also handled by the provider. The main difference from public clouds is that the infrastructure is only used by a single company.

Virtual Private Cloud

Multiple cloud environments are hosted on a single device, but they are entirely separate from each other. Users can customize their cloud environments according to their needs and preferences. Virtual private clouds can sometimes be confused with public clouds, but they are private clouds within a public cloud. The resources they use are isolated from other virtual private clouds in the public cloud.

Advantages and Disadvantages of Private Cloud

Depending on the nature of the work, opting for a private cloud may be inevitable. There are certain advantages and disadvantages of using a private cloud over a public cloud.

Advantages of Private Cloud

• Private cloud offers full control over hardware and software. Desired hardware configurations can be made, and software choices are flexible.
• Resources are not shared with other users, allowing for a more efficient and high-performance cloud system.
• It meets the company’s security standards, as private clouds reside within the company’s secure network, protected by security measures in place.
• The cloud infrastructure can be tailored to meet the legal regulations the company is responsible for in its field.

Disadvantages of Private Cloud

Compared to public and hybrid cloud solutions, private clouds are more costly to set up and operate. 

• If hosted solutions are preferred, initial costs are replaced by regular payments, which may lead to higher total expenses.
• Scalability is more limited compared to public cloud services. The limits of the cloud are tied to the physical hardware, requiring new hardware investments to scale up.
• IT personnel experienced in cloud technologies are necessary. A poorly configured private cloud can turn all its advantages into disadvantages.

Differences Between Private Cloud and Public Cloud

The most important difference between private cloud and public cloud lies in how they utilize physical hardware. In public clouds, a single hardware setup can be used by multiple users, with the entire infrastructure controlled by a third-party provider. In private clouds, the physical hardware is used exclusively by a single user, whether owned or rented.

Both models offer scalability, but scaling a private cloud is more challenging and costly. It may require hardware upgrades, while in public clouds, it’s easier to scale up by switching between the options provided by the cloud provider.

Private clouds are more expensive than public clouds, requiring setup and maintenance costs. In public clouds, the costs are predetermined and generally lower, based on the resources consumed.

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