Benefits of Private Cloud: Advantages, Types and Use Cases Explained

Cloud computing has dominated the attention of the tech industry ever since the mid-2000s. The significant advancement in computing had businesses capitalizing on it to gain a competitive edge to stay ahead. While the public cloud appeared initially as the most cost-efficient solution, some organizations started encountering problems with it. The main reasons were that the public cloud became congested, risky, and generally unsafe for those organizations due to shared resources with other companies.

As a result, the concept of the private cloud was introduced. It provided many benefits that the public cloud couldn't offer. In this article, we will discuss those benefits in great detail.

#What is a private cloud?

A private cloud refers to a cloud computing environment that is solely for one organization. It differs from a public cloud because the organization using a private cloud has complete control over all the cloud's resources. These include the CPU, Virtual Machines, Storage, and even the specific network infrastructure and firewalls dedicated to it. Private clouds merge the best parts of cloud computing and on-premise architecture, offering the flexibility and scalability of cloud computing on one end, and the security and control of on-premise IT infrastructure on the other.

#Key characteristics of private cloud

To understand how a private cloud works, it's important to be familiar with its key characteristics. Private clouds are not much different from public cloud operations, except that they are designed to accommodate exclusive resources within a single-user cloud environment.

• Access to a private cloud is restricted to a single organization. This is often referred to as single-tenancy.

• Organizations have complete control over the infrastructure, including hardware, software, and networking. Therefore, organizations can customize them to meet specific business needs

• Private cloud infrastructure can be hosted on-premises or by a third-party provider. Organizations can decide either to manage and maintain infrastructure or outsource it to a third-party cloud provider.

• Scalability is limited to the physical infrastructure available. While it can be configured for elasticity, it requires significant planning and investment.

• A private cloud requires upfront capital expenditure for infrastructure and ongoing operating expenses for maintenance.

#Private cloud vs public cloud vs hybrid cloud

Let's compare the private cloud with the public cloud and hybrid cloud to see the differences in implementation and the pros and cons each brings to an organization over the other two types.

#Top 8 benefits of private cloud

The majority of the benefits of a private cloud come from the fact that it serves only one organization. This means it doesn't have the downsides you face when sharing computing resources with other organizations. Let’s see what these exact benefits are.

#1. Maximum security

In a private cloud, resources are exclusive to your company, offering a higher level of security. This exclusivity reduces the risk of cyber threats, keeping your organization's confidential information secure.

Private clouds also provide customizable security measures, allowing organizations to customize their security protocols to their specific needs. This can include configuring data encryption, a virtual firewall, and implementing network segmentation. Network segmentation controls traffic between subnets, protecting sensitive data from unauthorized access and reducing the impact of potential cyber-attacks.

Furthermore, for organizations facing higher risks, facilitate a more suitable security environment for implementing Zero Trust. While Zero Trust can be applied in both public and private clouds, the controlled and customizable nature of private clouds allows for a more dedicated and specific implementation of security measures.

#2. Customizable infrastructure and configuration

Private clouds can integrate with your existing infrastructure with ease. This means your organization could utilize the existing infrastructure while enjoying the benefits of cloud computing.

Private clouds can be configured to work for the specific demands of our business. This means you can configure your setup with the preferred OS, whether it’s Windows, Linux, or Mac. You are able to choose the level of redundancy required, along with the type of virtualization that works for you depending on the performance, security, and workload. Redundancy in a cloud environment is important to make sure that even in the event of a system failure or anything similar, continuity would be possible.

#3. Efficient resource utility

Private clouds are designed to achieve optimal efficiency in computing resources, including storage, computing power, and network components. This design maximizes the cloud system's performance while maintaining cost efficiency.

While both private and public clouds offer on-demand resource allocation, private clouds provide a dedicated environment where these resources are not shared with other organizations. This exclusivity can be important for businesses with specific compliance, security, or performance requirements. Private clouds also support automated resource management but with the added benefit of customization and control over the environment. This ensures that resources are allocated precisely according to the organization's specific needs and policies.

#4. Cost predictability

The payment model in public clouds is typically a pay-as-you-go model. This model can be unpredictable as the cost varies depending on the usage. This variability has been a concern for users of cloud computing.

However, private clouds can offer a more predictable cost model. While not entirely without variability, businesses with private clouds generally have a clearer understanding of their infrastructure costs. Once you’re done with the initial investment for hardware and setup, it is all smooth sailing with stable ongoing costs, making it easier for you to plan your finances and expenses.

When your resource demand is predictable and you have a clear understanding of it, your business can allocate just the necessary resources needed in advance. While this makes the process of resource allocation much easier, it also reduces the risk of unexpected provisioning costs. Since Businesses that use private clouds will have full control over their resources, you’ll be able to manage your resources and in turn, the cost of it better.

#5. Regulatory compliance

Regulatory compliance is about how well an organization can follow a set of rules that are set by the government, your industry, or maybe even your own company. These rules are especially important for organizations that handle sensitive or confidential data such as organizations in the finance or healthcare sectors.

For example, according to GDPR, organizations should maintain confidentiality with personal data while also maintaining the privacy rights of individuals. Private clouds enable the implementation of bespoke security measures to meet these standards.

#6. Service Level Agreement (SLA)

SLAs are important when selecting a cloud service provider. They are formal agreements that provide details about the expected quality of service. SLAs specify the performance standards you can expect, such as uptime and response time, and the repercussions for the provider if these standards are not met.

In the context of private clouds, businesses can have an advantage because they often have more control over the SLA. This means that a company can customize the SLA to meet its specific needs, which contrasts with public clouds where the SLA is set by the service provider and is less flexible.

Furthermore, in the event of a dispute regarding service quality, the organization owning the private cloud has the final say because it owns the infrastructure and has direct access to performance data. This level of control makes the service agreement as robust as possible.

#7. Disaster recovery

Disaster Recovery as the name suggests, is how well an organization can bounce back from a system failure or any disruptive event. It’s about preparing for worst-case scenarios and testing the company’s ability to quickly overcome them.

In the context of the private cloud, businesses have complete control over their data and applications, and they can create their disaster recovery strategy to anticipate threats.

Since data and resources in a private cloud are isolated within a dedicated infrastructure, it offers more control and typically less latency. This becomes advantageous during backups and replications to the cloud, as lower latency can expedite and streamline the process.

#8. Legacy application compatibility

Legacy applications are software that has been used by the company for a long time. They are often considered outdated or obsolete, but in most cases, they are very important to the organization. The migration of legacy applications is an issue many organizations struggle with when moving their systems to the public cloud. However, in a private cloud, they can be made compatible due to their customizable nature.

For example, services like Cherry Servers allow businesses to revamp their legacy applications without going through the regular messy re-architecting process. This method while cost-effective, is also efficient as it saves time.

#Types of private cloud

Private clouds can be categorized into several types based on how they are managed, who manages them, and where they are hosted. When an organization looks for a private cloud, it needs to evaluate which type of private cloud is best for its needs. Let's see what options are available for them.

1. On-premises private cloud: In an on-premise private cloud, the company hosts servers locally in its data centers. This means the company owns all hardware and software. Not only that, but the company's IT team also handles all the maintenance and operational cloud tasks without the involvement of a third-party cloud provider. This cloud model offers organizations the highest control over their data and security. However, it also demands a higher investment in terms of staff, software, and hardware.

2. Managed private cloud: In a managed private cloud arrangement, the organization retains ownership of the hardware and software, which may be located either on-site or at a remote facility. The responsibility for managing, operating, and maintaining the cloud infrastructure is delegated to specialized external providers of private cloud services.

3. Hosted private cloud: In this setup, the necessary infrastructure is managed at a cloud provider's data center. It ensures a private environment solely for the user organization. Organizations that don't have their own data center yet need to control their data closely find this option well-suited to their needs.

4. Virtual private cloud: Most commonly referred to as VPCs, Virtual Private Clouds are secure and isolated environments offered by public cloud providers. These dedicated cloud environments offer a decent bargain as they come with the scalability and flexibility of a public cloud and the control and security of a Private Cloud.

#Who would benefit from using a private cloud?

Organizations requiring robust security, stringent compliance, data sovereignty, and superior performance often find private clouds advantageous. Different sectors have unique demands that make private cloud environments particularly beneficial.

• In the financial sector, including banks and insurance firms, the need for adherence to strict regulatory standards makes private clouds a preferred choice.

• The healthcare industry, encompassing hospitals and research facilities, utilizes private clouds to safeguard patient information, aligning with regulatory standards like HIPAA.

• For government entities managing classified data and providing public services, the private cloud offers a secure and controlled environment.

• Telecommunications providers, dealing with large volumes of sensitive information, leverage private clouds to ensure enhanced control and security.

Also read: Benefits of Kubernetes on bare metal

#Conclusion

Implementing a private cloud is a strategic move for organizations. It helps maximize their operations by enhancing security, cost predictability, resource utilization, performance, etc. However, it comes with higher costs and early investment. There are several types of private clouds, depending on how much control you need to maintain within your organization. By opting for the most suitable private cloud type, you can reduce the cost while maintaining the required control of cloud resources that your business needs.