Business Benefits of Private Cloud Computing Services

Abhinav Anand | February 14, 2022 | 418 views

Business Benefits

Cloud computing has been spreading over a large landscape with each passing year. With its growing importance among organizations, the decision on which cloud computing service to use has turned out to be a never-ending debate, with options including public cloud, private cloud, multi-cloud, and hybrid cloud. Businesses of all sizes and types can effectively benefit from using a cloud service to cater to their IT needs.

Broader Understanding of Private Cloud Computing

A private cloud computing environment is defined as a computing service offered over a private network available only to internal users and not open to the general public. Also called internal or corporate cloud, it provides an organization with numerous business benefits. A private cloud infrastructure delivers a higher level of security and privacy when compared to the rest of the cloud deployment models. This helps the organization ensure that any third party doesn’t get their hands on any sensitive or confidential data.

Two models of cloud services can be deployed on a private cloud infrastructure. First is Infrastructure as a Service (IaaS), which allows organizations to utilize infrastructure resources as a computer, network, and storage service. The second option that an organization can use is Platform as a Service (PaaS). It helps an organization deliver simple cloud-based applications or sophisticated enterprise applications.

Reasons to Choose Private Cloud Computing over Other Options

A private cloud service can be used to deploy any application or service, including websites, web application back ends, virtual desktop infrastructure, big data and machine learning applications, and databases. Generally, private cloud infrastructure is used by highly regulated fields of functioning where data is sensitive and high data security is required.
Once the organization has figured out its cloud requirements, it can effectively evaluate whether a private cloud service would be the right choice.

The private cloud service is also considered an excellent option for an organization that requires increased flexibility in a virtualized environment. Virtualizing a server allows an organization to increase or decrease the resources available.

To determine the ideal cloud platform that would work for your organization, you must evaluate the following:
• Need for flexibility
• Need for security
• Compliance requirements
• Cost
• Application usage
• Required environment
• Organization capacities

Many companies say, ‘We’re a cloud-first organization,’ but that’s really an intent, not a strategy. A strategy needs to explicitly define how they are going to apply “cloud” to best execute on business objectives,”

Denis Berry, Principal and CIO Advisory Lead at KPMG


Potential Challenges You Might Face with Private Cloud Infrastructure

 
You will come across specific challenges when you implement a private cloud infrastructure for your business. Some of the potential challenges are:

Cost

Private cloud computing is a comparatively expensive model when compared with the rest of the available cloud options. This is because of the cost of servers, network infrastructures, data centers, and software licenses. In addition, the cost of on-site staff is also something that the organization will have to bear.


Maintenance

There is a significant setup and maintenance cost, which goes hand in hand with private cloud deployment. In addition, the on-site servers need regular maintenance and upgrades, which adds to the cost and is also time-consuming.

Scalability

Scalability is a primary concern when we talk about the private cloud. For example, to scale with a requirement, a private cloud infrastructure will have to add or remove physical servers that can accommodate the organization's needs.

Remote Access

Even though private cloud services offer optimum security, they also result in a lack of remote access. Hence, the private cloud can be extended only from an internal hosted resource and it is difficult to deploy it on a global scale.

How Does Private Cloud Computing Serve Your Business Better?

                  
By using a private cloud service, organizations can easily avail themselves of the benefits of cloud computing without having to compromise on security, control, and customization.

While using a private cloud infrastructure, organizations have complete control over their hardware and software choices. Therefore, they are free to purchase and employ software that they need and prefer.

Private clouds also offer users’ great freedom to customize hardware and software. Users can easily customize their servers in any way they wish, as per the organization's requirements.

When an organization deploys a private cloud service, they are not forced to rely on the industry and regulatory compliance offered by the cloud service provider.

Conclusion

To sum up, private cloud infrastructure is ideal for your organization, if you:
• Are you worried about security
• Need more control over your cloud services
• Are operating in a heavily regulated industry

Since 2009, cloud computing technology has been moving to the foreground. A rapid growth in its utilization was expected from 2014 onwards. The European Union is backing this technology with a policy aimed at encouraging cloud computing use and establishing unified guidelines for its usage by European businesses. The use of cloud computing can give you a competitive advantage. Certain procedures must be in place to enable public institutions' adoption of cloud computing (Cattaneo, 2012). It is important, among other things, to set clear standards for service providers so that data can be transferred among cloud service providers, to have a stable and fast internet connection, and to have an EU-level safety certification.

FAQ


Why Is Private Cloud Computing Expensive?

Private cloud computing is expensive because it incurs two types of expense. One is a capital expense for all the hardware required, and the other is an operating expense, which would be the cost of their maintenance. The organization would have to invest in all the required hardware and software single-handedly.

Will Deploying a Private Cloud Mean Hiring More People?

Yes, when you use a private cloud model, it is essential that you have an IT team focused on handling the needs of the server. A team capable of handling all the maintenance costs and upgrade requirements.


Can an Organization Deploy a Private Cloud along with a Public Cloud?

Yes, this model is called a hybrid cloud. In a hybrid cloud infrastructure, the organization uses both a private cloud as well as a public cloud, or any combination required. Using this model helps an organization avail the benefits of private cloud while also enjoying the features of a public cloud.

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