Private cloud is essentially a cloud computing platform set up within the corporate firewall, tailored to the specific needs of the enterprise. Third-party providers may have a role in running and managing the platform, but it remains under the operational control of the enterprise.
The private cloud is an attempt to address two significant limitations of the pubic cloud, control and sovereignty of data, and address these issues reasonably well. This is a customized set up, specific to the enterprise, and the enterprise can decide who has access to the data and where exactly to store the data. The data may be stored in-house or at any specific third-party data center selected by the enterprise. Either way, it offers greater control and reliability compared to public clouds.
While the private cloud loses out on easy scalability, it makes up with ease of customization. It becomes very easy to customize storage and networking components so that the cloud becomes a perfect fit for specific organizational requirements. The private cloud model allows enterprises to customize the cloud configuration and architecture as per requirement, even while leveraging secure third-party help for maintenance. Logistically, it is simpler to migrate from an on-premises application to a private cloud than a public cloud.
However, these benefits obviously come at a greater cost compared to public clouds. Also, private clouds being managed onsite would cost the enterprise time, money, workforce and other resources. This can quickly get out of control and negate the very advantage that the cloud offers in the first place. Again, the talk of private clouds being intrinsically more secure than public clouds holds true only in theory. There is nothing to prevent an enterprising and determined hacker to breach a private cloud, just as they breach even the most secure networks in the world time and time again.
All this considered, the private cloud is a good option for enterprises that handle sensitive data and have to comply with many regulations, or for enterprises concerned about the theft of their intellectual property. The popularity of private clouds is growing, as IDC estimates 69% of manufacturers worldwide now have more than two applications in a private cloud. Managed private clouds are expected to grow by 45% in 2015.