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Private Cloud In Cloud Computing: Benefits and When To Use

Private Cloud In Cloud Computing: Benefits and When To Use
Hostman Team
Technical writer
Infrastructure

What is a cloud? It’s virtualized server resources: RAM, processor power, disk space, and installed applications. The main advantage of the cloud-based approach to infrastructure is flexibility. If you need more performance, you can easily add memory or connect additional processing power when the load increases.

Difference Between Private, Public, and Hybrid Clouds

Below is the standard classification of cloud services:

  • Private Cloud: The infrastructure is used by only one organization. The equipment can be located either at the provider’s site or on the user’s premises.

  • Public Cloud: The infrastructure is shared by all registered users. Examples include Amazon Web Services, Microsoft Azure, and Hostman.

  • Hybrid Cloud: A combination of private and public infrastructure. Part of the equipment may be located with the user, and part with the provider.

From this classification, it’s clear that hybrid clouds are a compromise solution. However, using them isn’t always justified. To understand this better, let’s compare all three types across several parameters.

Comparison Table

Parameter

Private

Public

Hybrid

Complexity

High level of complexity. Requires selecting equipment and developing architecture.

Low level of complexity. You choose a suitable service and pay for it.

High level of complexity. You need to configure the private part and connect it with the external infrastructure.

Cost

Expenses are borne by the owner of the equipment and licenses.

Expenses are borne by the provider; the user pays a service fee.

Expenses are partly on the user, partly on the provider.

Maintenance

The organization must monitor the system and fix failures itself.

The provider manages the infrastructure.

The organization must monitor its private part.

Scalability

Additional resources must be purchased and configured manually.

Additional resources are available on demand.

Additional resources are available on demand.

Security

High, as everything is under the owner’s control.

Lower level of control; many security aspects remain the provider’s responsibility.

High level of security with proper architecture, when all critical nodes are located in the private cloud.

Private Cloud Advantages and Disadvantages

The comparison table above clearly shows the pros and cons of private clouds. Let’s look at them in more detail.

Advantages:

  • Physical access to the equipment usually remains only with the owner. It’s also possible to limit internet connections to prevent unauthorized data access.

  • You can save on physical equipment by investing in the development of a virtual infrastructure instead.

  • Flexible configuration of resources and computing power for different departments within the company.

Disadvantages:

  • Requires significant financial investment: you can’t build it without purchasing or renting equipment.

  • System design and deployment take a lot of time.

  • Scalability is limited by the available physical resources. If more capacity is needed, new equipment must be purchased.

When to Create a Private Cloud

Now that we understand what a private cloud is and what its pros and cons are, let’s figure out when companies choose this approach.

The main scenario comes from how a private cloud operates. Large organizations often have enough resources to purchase equipment, design a well-thought-out architecture, and fund teams of specialists to maintain the system. Such companies also tend to handle large volumes of data that require a high level of security.

Based on this scenario, the main users of private clouds are:

  • Mobile network operators
  • Banks
  • Insurance companies
  • Gas and oil enterprises
  • Retail companies

The types of data that companies host in their private cloud environments can vary, but they generally fall into two main categories:

  • Confidential or proprietary information, for which the organization must retain full control. Security policies or internal regulations may prohibit the use of public cloud servers, leaving private infrastructure as the only viable option.

  • Data governed by strict legal or industry-specific compliance requirements. For instance, certain privacy laws or standards (such as GDPR, HIPAA, or PCI DSS) require data to be stored in secure, controlled environments or within specific jurisdictions.

In such cases, a private cloud is often the most suitable solution. It provides greater control over security and compliance, reduces regulatory risks, and allows for certification under relevant industry standards.

Moreover, if the company later needs to expand its infrastructure to store or process less sensitive data, it can integrate a public cloud and adopt a hybrid model, combining flexibility with strong data protection.

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Without indexes, PostgreSQL also shows surprisingly high performance, processing a 400,000-record database in 1.3, 0.7, and 2.2 seconds for inner join, selection, and update operations, respectively. Thus, PostgreSQL delivers an average performance advantage of about 2× (2.06). Although MySQL was originally positioned as a high-performance platform, constant optimization by the PostgreSQL development team has resulted in greater efficiency. Advantages for Developers Here we consider only the unique features characteristic of each platform. Therefore, we will not discuss support for MVCC or ACID, as these features are present in both systems. From a developer’s perspective, MySQL is advantageous because it: Provides increased flexibility and is easily scalable, with more than ten storage engines based on different data-storage algorithms. Handles small read-oriented databases more efficiently (i.e., without frequent writes). 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