Private Cloud Guide

Private cloud is a single-tenant cloud environment where resources are dedicated to one organisation or user. A private cloud environment is made up of one or more virtual machines (VMs) running from physical servers, and is fully isolated. Private cloud gives  all the benefits of cloud infrastructure such as scalability and cost-efficiency, with full security, optimum performance, and control.

Here’s Luke White, one of our cloud experts, to explain the topic.

A private cloud model is, by design, solely dedicated to a single organization or user, meaning that resources are never shared.. It is a highly customizable model, and can be tailored to meet your specific needs.

The private cloud platform relies on virtualization technologies, generally hypervisors, to create virtual machines running on the underlying physical hardware. Unlike in a public cloud, where the underlying physical infrastructure is shared, in a private cloud the hardware and resources are exclusive to the user. This gives private cloud significant security and performance advantages over public cloud. 

Single-tenant architecture

Private cloud uses a single-tenant model, meaning a single organization or user (a tenant) has exclusive use of the computing resources, including virtual machines, storage and networking. As resources are never shared, private cloud offers enhanced data privacy, security and performance. 

Dedicated hardware

As private cloud is single-tenant, the underlying physical infrastructure is dedicated to the user, supporting compliance with industry-specific regulations, and giving high levels of customization and control. 

Full control of your infrastructure

Organizations using private cloud have complete visibility and control over their infrastructure. This enables custom configuration to support specific workloads, legacy systems, or specialized security protocols, making it an ideal choice for businesses with unique or sensitive operational needs.

Private cloud can take multiple forms –  there is no universal type of private cloud that is applied across all organisations. As every organisation and industry has its own specific needs, there is no one-size-fits-all solution to meet regulatory requirements, IT expertise, scalability needs and budget. The types of private cloud include:  ]

Virtual private cloud (VPC)

A virtual private cloud (VPC) is an isolated environment within a public cloud platform. While the physical underlying infrastructure is shared, the environment is walled-off, and each VPC has its own dedicated resources, network segmentation, and security controls, ensuring that the user’s resources are private. This makes it functionally similar to a private cloud, and allows a business to undertake work on a tool, platform, or workload in isolation from other users of the public cloud platform.

Managed private cloud

In a managed private cloud solution, a cloud hosting provider manages the  environment on behalf of a business or organisation. The level of management can be tailored to the organisation’s requirements, and can  include initial deployment, setup of additional services, resource scaling, security monitoring, patching,  and general day-to-day maintenance. As the environment is managed by the provider, the business benefits from the private cloud setup, without the need for in-house expertise.

Hosted private cloud

A hosted private cloud is typically hosted in a third-party data center on dedicated physical servers, exclusive to one user or organisation. The cloud service provider manages the network and infrastructure, while offering flexibility in terms of configuration and software. Unlike managed cloud, management of the environment is not necessarily included by the provider. 

Private cloud offers businesses greater control, security, scalability and performance through its dedicated infrastructure model.

The dedicated resources of a private cloud can be scaled vertically or horizontally to meet demands. As the infrastructure is exclusive to the user, there is no hard limit to resources as there can be with public cloud, so the hardware can easily cope with scaling requirements. Unlike with the shared resources of public cloud, private cloud gives consistent performance and greater resource availability, even during peak usage. 

Private cloud provides organisations with greater control over their security architecture than public cloud. The full isolation of the cloud, down to the hardware level, means that there is a reduced risk of external threats and data breaches. A private cloud environment is also more flexible than other setups, meaning security measures and practices can be tailored. This level of protection is ideal for organisations with strict compliance requirements, such as those in the financial, public or healthcare sectors.

As private cloud uses dedicated hardware, the user can benefit from a tailored setup specifically designed to meet their needs. Configuration can be fully customized, ensuring the private cloud is optimized for maximum performance and cost efficiency. The setup can also be adjusted at any point if the user’s needs change.  

Private cloud is ideal for organisations that require high levels of security, control, compliance and performance. When you are handling sensitive data, operating under strict regulations, or running mission-critical applications, private cloud provides a higher level of protection than public cloud. 

Additionally, private cloud is ideal for organisations with complex computing needs, as it allows for direct control over their infrastructure, with capacity for custom configurations, resource optimization, and a tailored security suite.

Typical use cases for private cloud include: 

• Finance – to protect financial records and meet FCA or GDPR compliance
• Government – for secure handling of classified or citizen data
• Healthcare – to store and process patient information in line with HIPAA or similar regulations
• Legal services – for managing confidential case files and client communications
• Enterprises with proprietary data – for protecting trade secrets, intellectual property, or custom-built applications

Migrating from on-premise to private cloud brings a range of benefits, including cost-efficiency, scalability, and high-availability. While some organisations find the prospect of migration to the cloud daunting, with planning and support the process can be seamless. The primary benefits of moving from on-premise to private cloud are: 

While it may initially seem that on-premise infrastructure is more secure as it is solely within your control, in practice, private cloud offers the same control, with significantly greater levels of protection made possible by hosting with an expert provider. 

With on-premise infrastructure, you are fully responsible for security, including digital and physical security measures. This requires you to have a high level of in-house security expertise, and the time and resources for constant monitoring and maintenance of physical assets and networks. It is therefore costly and difficult to meet the same high levels of protection given by an expert hosting provider. 

By contrast, cloud hosting providers are held to strict security requirements, and can offer private cloud solutions configured to meet the highest levels of protection and compliance. The single-tenant nature of private cloud means you have full control over your operations and data within a protected environment, and can configure your security suite to your specific requirements, with the support of technical experts. 

The security benefits of private cloud are enhanced with management. A managed service provider (MSP) handles the day to day running of your private cloud environment, including maintenance, patching, and monitoring. This means your infrastructure is expertly protected, round the clock.

Migrating from on-premise to private cloud reduces your capital expenditure (CapEx), moving away from large investments in assets, and towards an optimized operational expenses (OpEx) model. 

On-premise infrastructure tends to come with higher CapEx, and lower OpEx. For example, certain servers will need to be fully replaced every four years, as they stop being supported by the manufacturer. If you are running these servers on-premise, you will then face a significant CapEx cost to replace all of your hardware. Other CapEx costs for on-premise infrastructure can include additional hardware to scale up if your business needs grow, and costs for upgrades. 

OpEx costs of on-premise infrastructure can include rent for the space housing your servers, monthly payments for software, and electricity costs of running equipment.

In contrast, when using private cloud infrastructure, you will have reduced CapEx costs, as the purchase of hardware and upgrades is typically managed by the provider. Instead, you will have OpEx costs, primarily in the form of monthly billing. With a public cloud model hosted by a hyperscaler, this OpEx can be very high, particularly as your usage scales up, with unpredictable costs each month. However, with a private cloud solution with transparent billing, fixed costs, and affordable scaling, this monthly OpEx can provide cost-savings over the lifetime of your infrastructure against the CapEx costs of on-premise. Additionally with a private cloud solution, you will not have separate OpEx costs of renting server space, software payments or electricity, as this is all included in the monthly cost of the platform.

With either on-premise or cloud, when you are managing your infrastructure in-house, salaries for a skilled IT team can also raise your OpEx. This cost can be reduced through a managed private cloud solution, which removes the need to have in-house experts.

Read more on how migrating to a managed cloud solution can support you to optimize your CapEx and OpEx. 

Scaling can be achieved in an on-premise environment, but it is a costly and slow process, requiring additional physical hardware to be obtained, configured and deployed. On the other hand, scaling in a private cloud environment can be achieved quickly and cost-effectively through adding virtual resources. Private cloud is therefore significantly more agile, allowing you to effortlessly adapt your infrastructure to meet evolving needs.

Private cloud scaling is also more flexible. Resource needs are not static – you may need additional resources for a limited period of time, for example during Black Friday for an eCommerce business. After the period of high traffic is over, you will no longer need the additional resources. With on-premise infrastructure, once you have added the additional hardware to your infrastructure, you are left storing and paying for it unnecessarily. With private cloud infrastructure, the virtual resources can be scaled back once they are no longer needed, so you only pay for what you use. 

Migrating from on-premise infrastructure to private cloud is an essential transition period, and must be planned carefully to ensure the process runs smoothly. Before beginning the migration, you should have a clear strategy, taking into account goals, potential risks and how to mitigate these, and technical requirements. Key considerations include timelines, costs, data security, compliance requirements, and potential downtime or integration challenges. 

Key questions to consider are:

• Which applications need to be moved?
• Are they ready to migrate directly to the private cloud, or will they need adjusting?
• Where should they be hosted? 
• What infrastructure is needed?

There are two methods for migrating from on-premise to private cloud, online and offline:

Offline cloud migration

Portable storage media transfers data and applications. This method is necessary for large data volumes, unstable or unsecure network connection, or in an instance where the cloud provider does not accommodate online migration for certain tasks.  Reputable cloud providers offer a variety of tools to aid your cloud migration process. These providers have expert technicians to improve security and performance whilst catering for the company needs.

Related Content: Cloud Migration Content Hub

In an online cloud migration, data and applications are transferred to the private cloud through a secure network connection. Online migration is best suited for small to medium workloads, offering a fast, cost-effective solution with minimal disruption, particularly when undertaken in partnership with a cloud hosting provider.

Offline migration involves physically transferring data and applications using encrypted portable storage devices. . This method is necessary for large volumes of data, when there is an unstable or unsecure network connection, or when security or policy requirements prevent online transfers. While it can be a longer process, it gives a greater level of control, and mitigates any risk of transmission errors or timeouts. 

Working with a reputable cloud hosting provider to plan your strategy and oversee your migration is key to a successful process. Whether your provider fully manages the migration process, or provides guidance to your team, the support of expert engineers ensures your configuration is optimized, and data integrity and security are maintained. 

Related Content: Cloud Migration Content Hub

While both public and private environments are powered by cloud technology, there are fundamental differences in how they operate. Selecting the right cloud deployment model is key to meeting your goals. In this section, we will define public cloud, and explain the key differences between public and private cloud. 

Public cloud is a multi-tenant cloud computing model where shared infrastructure and services are delivered over the internet by third-party providers, prominently including Microsoft Azure, AWS and Google. 

Resources and architecture 

The ownership of the underlying infrastructure of public and private cloud solutions is their key differentiator. Public cloud uses a multi-tenant model, where physical servers are virtualised, often using a hypervisor, and the computing resources are shared between multiple users. 

Private cloud, in contrast, operates on a single-tenant model. where the physical hardware is solely dedicated to one user. Although virtualisation can still be used, the physical hardware is solely dedicated to one organisation or user, and all virtual machines and resources remain isolated within the private environment.

Public cloud can be a suitable solution for less sensitive workloads or development environments, however the difference between the distribution of resources means that private cloud offers greater levels of isolation, security, customisation and control. Private cloud is therefore ideal for organisations with strict compliance or custom infrastructure requirements. 

Security and compliance

The individual environments within the public cloud infrastructure are logically isolated, offering a level of security. However, for organisations dealing with sensitive data, or those in highly regulated industries such as healthcare or finance, the shared nature of the model may not satisfy security and compliance requirements. 

As private cloud offers exclusive access to the physical infrastructure and all virtual resources, it offers a higher level of isolation and security. It is also more customisable, meaning you can tailor your security suite to meet your needs. For these reasons, private cloud is often preferred by those with higher security and compliance requirements. 

Scalability and flexibility

Both public and private cloud models allow for scalability through virtualisation and/or containerisation. Virtual resources can be added and removed as needed to meet varying needs.

The difference between the two generally comes with the billing model. Public cloud costs for scaling can be unpredictable, especially if usage spokes. Customers may be billed for every minute of compute time or gigabyte of storage used. On the other hand, private cloud offers predictable monthly costs and greater control over resource usage. You can scale your infrastructure according to your needs, while avoiding surprise charges. 

There is no one cloud model that is universally better than another – the right solution for you depends on your specific needs. When deciding between public and private cloud, you should consider your requirements around security, performance, compliance, and scalability.

If your organisation handles sensitive data, operates in a regulated industry, or requires a high degree of control and customization, private cloud is often the superior choice. With dedicated infrastructure and tailored security, private cloud ensures your workloads remain isolated, compliant, and optimized for performance.

While public cloud can be ideal for less sensitive workloads or fast-scaling projects, its shared infrastructure may not meet stricter governance requirements out of the box. However, if you want the cost-efficiency and scalability of public cloud with added layers of security, compliance, and expert management, a managed public cloud service from a provider like Hyve can bridge the gap.

As outlined above, private cloud is a highly secure model, offering control, protection, and compliance benefits. However, there are some myths still in circulation around its security abilities.

The reality is that cyber attacks can happen regardless of setup. It’s commonly believed that data is less secure when stored on the cloud because more exposure means more risk, whilst on-premise infrastructure is safer as it’s situated physically closer to the end user. However, this is not the case.

Maintaining moderate security with on-premise storage is costly due to employing staff to continuously monitor data, and to patch and update servers constantly in real time. When you use a private cloud provider, all security patches and updates are maintained externally at a lower cost.

While the tangibility of an on-premise site may seem appealing, it can be inflexible and limiting. Innovation and upgrades are costly and time consuming due to the physical hardware required to take infrastructure to the next level.

In comparison, a private cloud solution provides organisations with the very latest security patches and features through a subscription-based model, and can be easily configured to an organisation’s needs.

Another misconception is that private cloud security can be costly, and having an on-premise site provides greater convenience and visibility, which is why some companies aren’t keen to migrate.

The reality is that private cloud storage can be less of a headache to manage due to cloud providers utilising dedicated security teams that train employees to understand the network, ensuring that your business can stay productive while migrations take place, without the risk of downtime.

Find out more about private cloud security myths in our in-depth insight published in PCR magazine.

Selecting a private cloud solution is a strategic decision, that can shape the performance, scalability and security of your infrastructure. Rather than taking a one-size-fits-all approach, it is important to assess how the solution aligns with your needs and long-term goals. 

The key factors to consider are: 

Look for solutions that allow you to easily scale compute, storage, and network resources without disrupting operations. This should include the flexibility to add and remove resources as required, and is particularly important if you experience seasonal demand, plan for expansion, or run dynamic workloads. Scalability should not come with surprise costs – ensure your provider is transparent about billing.

Consider the compatibility of the private cloud solution with your existing IT infrastructure. For seamless integration, your private cloud should integrate with existing tools, applications and systems, including any legacy systems you are retaining.

Your provider’s technical expertise and support capabilities are central to the success of your solution, and a key differentiator between options. To maximize the value and performance of your private cloud, you should opt for a provider with a proven track record in delivering secure, resilient private cloud solutions, who offers dedicated account management. 

Ensure the provider offers clearly defined service level agreements (SLAs) that guarantee uptime, response times, and performance metrics. Look into their track record for availability and their incident response process.

Assess whether the provider can meet your specific security requirements, including meeting any relevant compliance standards, such as GDPR, ISO 27001, or HIPAA. The provider should offer a comprehensive security suite, with features such as encryption at rest and in transit, role-based access controls, intrusion detection systems and regular security patching.