Cloud Computing

Private Cloud

Definition

A private cloud is a cloud computing deployment model where the cloud infrastructure is provisioned for exclusive use by a single organization. It can be physically located in the organization’s on-premises data center or hosted by a third-party service provider.

Why It Matters

Private clouds offer more control and higher levels of security and privacy, which is often a requirement for organizations in highly regulated industries like finance or healthcare.

Contextual Example

A large bank builds a private cloud in its own data center to run its internal applications. This gives them the benefits of cloud technology (like self-service and automation) while keeping all data and hardware under their complete control.

Common Misunderstandings

  • A private cloud is more expensive and less scalable than a public cloud.
  • It still requires the organization to manage and maintain the underlying hardware.

Related Terms

Last Updated: December 17, 2025