Private cloud architecture is essentially the aggregation of all resources in a data center into one pool of resources. Through virtualization of the hardware components, companies increase efficiency and utilization SDN for advanced routing, encryption, or network filters, and real-time analytics for network speed optimization. Private cloud solutions come from proprietary software developers like Microsoft, VMware, and Nutanix, while enterprise-grade open source solutions are available from Red Hat and others.
Private cloud solutions allow companies to architect a data center using software-defined networking (SDN) and virtualization (VMs). A private cloud can span to include multiple server locations or leased space in international colocation facilities. Private cloud solutions provide the software tools for complex network orchestration on bare-metal servers where the security of data can be managed on the premises of a business directly.
The types of private cloud solutions are primarily divided into proprietary and open source licensing differences. Linux developers such as Red Hat, SUSE, and Ubuntu distribute OpenStack solutions that can be used for private data center management on open source foundations.
Consultancy firms and integrator companies offer private cloud solutions in association with either open source or proprietary licensed software platforms. Some consultancies will specialize in Linux, others in Windows solutions. A consultancy company can be a cost-saving resource for private cloud installation and management vs. in-house talent and recruiting. Each complex business organization has a unique IT strategy where private cloud solutions are seen as a modernization of archaic legacy operations.
Many large companies have governance policies that prohibit sensitive data or software from being hosted offsite. The traditional corporate data center must be upgraded to cloud standards with new virtualization formats such as Docker and Kubernetes predominating. Private cloud solutions can be used to host databases for internal operations or web/mobile apps on high-speed, on-premises hardware.
The main advantage that public cloud solutions have over private cloud is the basic cost of operations. Beginning with fiber connections, backup power supplies, cooling, and 24/7 security, a private data center is expensive to manage. Add to this the cost of dedicated systems administration staff, continual upgrades of hardware, maintenance, breakdowns, and service outages. Public cloud saves businesses an average of 40% over in-house private cloud data center operations.
Businesses that cannot compromise on data security choose private cloud solutions even if these are more expensive than Google, AWS, or Azure to operate. Otherwise, management cannot guarantee unauthorized super-user access to the hardware. Most public cloud hosts have security measures in place that are sufficient for military and Wall St. banking corporations. Old stereotypes related to public cloud security are being defeated, but many corporations still will not abandon in-house data centers.