1.4.2. Private Cloud

💡 First Principle: Private cloud involves computing resources used exclusively by a single organization, offering high control and security, either on-premises or hosted by a third party.

A private cloud refers to cloud computing resources used exclusively by a single organization. It can be physically located on the organization's own premises (on-premises private cloud) or hosted by a third-party service provider.

Key Characteristics of Private Cloud:

• Exclusive Use: Dedicated to a single organization.
• High Control: The organization has significant control over the infrastructure, security, and data.
• High Security & Privacy: Often chosen for sensitive data or strict compliance requirements.
• Higher Cost: Typically involves higher upfront capital expenditure and ongoing operational costs compared to public cloud, as the organization or host pays for all hardware and maintenance.
• Less Scalability: May have less rapid scalability than public cloud, as scaling requires procuring and provisioning new hardware.
• Examples: A company's own data center running virtualization software; dedicated cloud infrastructure within a public cloud provider's network (e.g., AWS Outposts).

Scenario: A financial institution handles highly sensitive customer data and has strict regulatory compliance requirements that mandate keeping certain data within its own control, not shared with other customers.

Reflection Question: How does the private cloud model, by providing dedicated computing resources used exclusively by a single organization, fundamentally offer high control and security, often chosen for sensitive data or strict compliance needs?