Posted on February, 2012
Private cloud (also called internal cloud or corporate cloud) is a marketing term for a proprietary computing architecture that provides hosted services to a limited number of people behind a firewall. Advances in virtualization and distributed computing have allowed corporate network and datacenter administrators to effectively become service providers that meet the needs of their "customers" within the corporation. Marketing media that uses the words "private cloud" is designed to appeal to an organization that needs or wants more control over their data than they can get by using a third-party hosted service such as Amazon's Elastic Compute Cloud (EC2) or Simple Storage Service (S3).
Private clouds help companies get the benefits of the more elastic and flexible cloud computing model while reducing some typical CIO concerns about the cloud, such as lack of control over data, security concerns, and adherence to regulatory and compliance needs. Since the private cloud is within the company firewall, internal IT owns and controls it. Because internal IT still owns and controls a private cloud, the company still needs to invest in both the infrastructure and expert resources to deploy and manage the private cloud(unlike a public cloud, where a third party takes care of this). So private clouds may not be able to provide the same economies of scale which a public cloud can provide.
(Some private cloud solutions offer the flexibility for “cloud burst” into a public cloud to handle spikes and peaks when added resources are required. have the capability to" cloud-burst" into a public cloud at peak times when additional resources are needed).Since virtualization (which enables many physical servers to be pooled into a large computing resource that can be used to run many virtual machines on different sizes to meet different needs at different time) is a key technology enabler for cloud computing, the company needs personnel that are expert in virtualization. Because internal IT is in the role of service provider to internal groups/divisions, IT must also have expertise in creating and managing SLAs. For all the above reasons private cloud solutions are very important.