Table of contents
What is a private cloud?Private cloud vs public cloudPrivate cloud vs hybrid cloudHow a private cloud works7 benefitsTypes of private cloud deploymentsWhy choose Liquid WebFAQsNext stepsAdditional resources
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What is private cloud?

A virtual private cloud (VPC) gives you your own private slice of a public cloud provider’s infrastructure. It’s isolated, customizable, and secure—perfect for businesses that want the scalability of cloud computing without sacrificing control over their network environment.

Let’s break down what a VPC is, how it works, and why it matters.

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What is a private cloud?

A private cloud is a dedicated cloud computing environment that exclusively serves a single organization. Unlike public clouds, where infrastructure is shared among multiple tenants, a private cloud ensures all resources (compute, storage, and networking) are allocated to one user only.

This setup allows businesses to reap the benefits of cloud computing—like scalability, elasticity, and automation—while maintaining strict control over data security and regulatory compliance.

Private clouds are ideal for organizations that:

  • Handle sensitive data subject to compliance regulations
  • Require custom infrastructure configurations
  • Need predictable, high-performance hosting

Private cloud vs public cloud

The biggest difference between a private cloud and a public cloud is access and ownership.

  • Public clouds are shared environments managed by third-party providers like AWS or Azure. They offer pay-as-you-go pricing and rapid scalability.
  • Private clouds are isolated environments built specifically for one organization. Resources are not shared, giving you greater control, security, and performance.

Public cloud may be best for startups or low-sensitivity workloads. But if your business requires HIPAA, PCI, or data sovereignty compliance—or just better predictability and control—a private cloud is the better fit.

Private cloud vs hybrid cloud

Hybrid clouds blend private and public environments, allowing data and workloads to move between them.

A private cloud runs entirely in a dedicated environment. A hybrid cloud allows:

  • Sensitive or critical workloads to stay private
  • Other workloads to burst into a public cloud for scale
  • Flexibility across platforms and providers

Private cloud offers maximum isolation and control. Many businesses use hybrid cloud to start small and scale into a private cloud when needed.

How a private cloud works

Private cloud infrastructure typically includes these components:

Virtualization

Virtualization is the core of private cloud. It lets you run multiple virtual machines (VMs) or containers on a single bare metal server, making better use of physical hardware. This flexibility enables dynamic resource allocation and isolation.

Cloud management software

Tools like VMware help admins provision, monitor, and scale private clouds. These platforms offer intuitive dashboards, APIs, and automation frameworks for managing compute, storage, and networking.

Automation and orchestration

Advanced automation tools handle tasks like:

  • Auto-scaling based on workload demand
  • Load balancing
  • Backup and recovery

This reduces manual effort, enforces consistency, and improves uptime.

7 benefits of private cloud hosting

Private clouds are ideal for organizations needing a secure, high-performance environment that can grow with their business. Key benefits include:

1. Scalability and flexibility

Private clouds let you scale resources up or down based on demand—without overpaying for unused capacity. This model is especially cost-effective for organizations with consistent usage patterns.

2. Better resource utilization

Most on-premises servers are underused. Private cloud’s virtualization layer enables dynamic resource allocation, allowing you to optimize performance and avoid waste.

3. Reduced infrastructure costs

Private cloud hosting eliminates the capital expense of on-prem hardware. It also enables cost savings compared to public cloud when long-term workloads require fixed performance.

4. Enhanced security

Private clouds give you total control over data access, network configuration, and user permissions. Since the infrastructure is isolated, your attack surface is significantly reduced compared to public cloud.

5. Regulatory compliance

If you’re subject to HIPAA, PCI DSS, GDPR, or other regulations, private cloud helps you meet compliance through:

  • Isolated infrastructure
  • Encrypted data flows
  • Audit-ready access controls

6. High availability and performance

Private cloud infrastructure is built with failover protections, high-performance storage, and premium bandwidth. It delivers the consistent speed and uptime needed for mission-critical apps.

7. Hybrid cloud readiness

Private cloud integrates easily with public cloud services for phased migrations, workload offloading, or disaster recovery. VPN-ready environments support secure hybrid cloud deployments.

Types of private cloud deployments

There’s more than one way to deploy a private cloud. Here are the most common models:

On-premises private cloud

Best for large enterprises with existing infrastructure:

  • Hosted in your own data center
  • Maximum control and physical security
  • Requires internal expertise and hardware investment

Managed private cloud

Best for businesses that want cloud benefits without in-house complexity:

  • Infrastructure is dedicated but managed by a provider
  • Reduced burden on your IT staff
  • Includes monitoring, updates, and 24/7 support

Virtual Private Cloud (VPC)

Best for growing businesses that need a balance of control and scale:

  • A logically isolated section within a public cloud platform
  • Offers private network configuration and access controls
  • More cost-effective than full private cloud, but with some shared infrastructure

Why choose Liquid Web for private cloud hosting?

Liquid Web specializes in fully managed private cloud environments for businesses that can’t compromise on security, performance, or support.

What you get with Liquid Web:

  • 100% dedicated infrastructure (MPC or VPC)
  • VMware-based virtualization with full customization
  • Built-in compliance support (HIPAA, PCI, GDPR)
  • 24/7/365 access to our Most Helpful Humans in Hosting®

Whether you’re running legacy apps, building a hybrid cloud strategy, or simply need more control than public cloud allows, we’ll design a private cloud that fits your business.

FAQs about private cloud hosting

Yes. Private clouds run on dedicated hardware and support stricter access controls and custom security policies.

Absolutely. Liquid Web offers HIPAA-ready configurations tailored to healthcare and finance organizations.

Absolutely. Liquid Web offers HIPAA-ready configurations tailored to healthcare and finance organizations.

Not always. For long-running, high-performance workloads, private cloud often delivers better performance at a lower total cost of ownership.

Additional resources

What is a dedicated server? →

Benefits, use cases, and how to get started

Best dedicated server hosting Europe: Top 7 choices →

This guide aims to simplify your decision-making process by presenting a comprehensive analysis of the top seven dedicated server hosting providers in Europe.

Fully managed dedicated hosting →

What it means and what fully managed services cover on dedicated hosting

Liquid Web’s Product Innovation & Marketing Manager Ken Wallace got his tech start in college by building websites. He soon entered the world of web development and has spent the last twenty-two years working in the tech industry.Previously, Ken was the GM of WP Sandbox, a Stellar brand brought into the Liquid Web Family of Brands with the Events Calendar acquisition. In his current role, Ken is part of two teams at Liquid Web: Product and Marketing.

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