Private cloud offers data protection and control

A private cloud is a cloud computing environment that only one organization has access to. Depending on the option chosen, the private cloud lives in a company’s own data center or with a provider of private cloud hosting. With a private cloud, companies benefit from the advantages of cloud computing, allowing them to use the full power of the hardware alone and keep control over the location of their data and applications at all times.

As only a clearly defined group of users has access, the private cloud is also referred to as an “enterprise cloud” or “internal cloud.” When it comes to scalability and flexibility, it offers all the advantages of virtualized computing but with more direct control in the areas of data protection, security and costs.

There are three different models of private cloud: internal cloud, hosted cloud and managed cloud. With an internal cloud, the entire infrastructure is in the company and the cloud services are administered solely by its own IT department. In the case of a hosted private cloud, a company uses the hardware of an external provider, although it is operated strictly separately from the other clouds of the provider and only the authorized company has access to it. With a managed private cloud, the infrastructure is also located in the data center of an external service provider (managed cloud service provider), but it is also managed and monitored by it.

There are three different models of private cloud: internal cloud, hosted cloud and managed cloud.

Each of these models is associated with different organizational work and requires different amounts of time. In contrast to the public cloud, an internally operated private cloud demands technical expertise and a considerable amount of start-up investment. For most small and medium-sized enterprises, this is a tall order. For them, hosted or managed private clouds are the most cost-effective solution.

Two types of cloud services are usually made available in a private cloud. There is Infrastructure-as-a-Service (IaaS), which allows the employees of a company to use infrastructure resources such as computers, the network and storage combined as a service. Then there's Software-as-a-Service (SaaS), which is used to provide all the applications required, from simple cloud-based applications to specific company applications.

Typical areas of use include supplying information for field sales from an internal CRM system or uploading product information, data sheets and design documentation – any time and from anywhere. Depending on the security requirements, access to the data can be restricted not only to specific people, but also to registered mobile devices.


What to consider with a private cloud

For companies that are subject to regulatory requirements, a private cloud can be the best solution for compliance reasons. Other companies opt for a private cloud to store sensitive data and keep more control as far as security is concerned. But you should remember that, as the operator of the cloud, you have to pay and take responsibility for all the security measures yourself, including the proactive ones. Experts consider the security level of many public clouds to be higher, especially in the areas of failure safety and state-of-the-art protective mechanisms.

A disadvantage of the internal private cloud is that the costs for setting it up are high because of the hardware equipment required. Infrastructures have to be created and there are also maintenance and management costs during ongoing operation. In the context of remote access to the private cloud, security and access problems can arise, especially for mobile users.

When it comes to scalability, a private cloud may prove to be less flexible than the public cloud. If demand increases at short notice, it may be that performance simply cannot be upgraded. With an on-premise solution, investment in redundant hardware is required for this. Alternatively, additional private instances could be booked with a cloud provider. In any case, the private cloud requires more administrative and maintenance work than a public cloud.


Private cloud advantages


If the private cloud is operated by an external cloud provider, they take care of the operation and maintenance of the solution.



Only one company uses the private cloud hardware and can therefore access the full performance.

Cost reduction

A private cloud in the data center of a cloud provider saves investment in terms of hardware and operation costs.


The protected environment of a private cloud is even compatible with strict compliance regulations.


Multi-cloud means relying on more than one public cloud provider. Increased performance and fail-safety can be reasons for a multi-cloud.
Hybrid Cloud
A hybrid cloud offers the possibility of extending a company's own private cloud with flexible resources from a public cloud.
Public Cloud
In a public cloud, companies use infrastructures, software and development platforms - entirely on demand.
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