A private cloud is typically an on-client premise solution with the infrastructure leased or purchased by the company/entity using it. These environments can also be deployed within a service provider data center utilizing collocation services. This would still be considered an on-premises solution as the collocation space is just another leased location for the infrastructure owner. A private cloud is typically managed by the organization it serves; however, outsourcing the general management of this to trusted third parties may also be an option. A private cloud is typically available only to the entity or organization, its employees, contractors, and selected third parties. The private cloud is also sometimes referred to as the internal or organizational cloud.

The factors driving the use of infrastructure may include legal limitations, trust, and security regulations. Private cloud benefits include more control over data, the underlying systems, and applications, ownership, retention of governance controls; and assurance over data location. Private clouds are typically more popular among large, complex organizations that have legacy systems and heavily customized environments. Additionally, where significant technology investment has been made, it may be more financially viable to utilize and incorporate these investments within a private cloud environment than to discard or retire such devices.

Is a private cloud really a cloud? It has cloud in the name. Having cloud in the name was not one of the five characteristics of the cloud. It is interesting to debate, you decide. Compare a private cloud to the five characteristics and come up with an answer.