What is a virtual private cloud (VPC)?

Private cloud is a cloud computing environment where all hardware and software resources are dedicated and exclusively accessed by a single customer, either through the internet or a private network connection. It’s also known as ‘internal cloud’ or ‘corporate cloud’. Private cloud can operate either from an on-premise data center, third-party colocation facility, or private cloud provider that offers a private cloud hosting service.

Why use a private cloud

Many organizations choose private cloud for the following advantages:

Security

As private cloud is limited to be exclusively accessed by a single customer, it helps meet security and regulatory compliance requirements such as GDPR. Private cloud also helps to meet the requirements when handling confidential and sensitive data such as personally identifiable information, medical records, intellectual property, financial data, etc.

Sustainable performance

Since private cloud is dedicated to a single customer, the performance is predictable. Public cloud is multi-tenant, meaning noisy neighbors can affect sustainable performance by taking away shared resources.

Cost

The cost of a private cloud is consistent each month, as long as you are using the same hardware and software. If you own the hardware and facility, private cloud could yield long-term savings with predictable cost compared to monthly fees paid for public cloud.

Control

Private cloud gives you the freedom to choose whichever hardware and software in any configuration that makes sense to you. Since you have full control over the hardware in a private cloud, you will get greater visibility and access. Conversely,   with public cloud, you will have to choose from existing offerings by cloud service providers (CSPs).