What is private cloud computing?

There are three basic classifications for cloud computing, public, private, and hybrid. Public cloud computing is based on the idea that the individual or company using the computing resources doesn't have control over the resources. Using Google Apps to host your domain email would be an example of a public cloud service, because the resources used are shared across multiple companies and you have limited control over how the resources are allocated. A hybrid cloud straddles public and private because an overlapping group of services may pull some resources from a private infrastructure, like an internally hosted set of servers, while offloading portions of the service to a public infrastructure. Private cloud computing is built entirely on computing resources owned and controlled by the company or individual using them. 

Advantages of Private Cloud Computing

Example of Private Cloud Computing

For an example of private cloud computing, think of a company with its own computing, storage, and networking resources. The resources can be re-allocated to different divisions on the fly, based on availability, by allowing divisions within the company to request a subset of the available resources. For instance, the finance team is coming up on the end of month payroll and needs extra computing power to calculate the various tax and benefit payments for each of the 10000 employees in the firm. The job will take about one week to complete, and then the finance team will need far fewer resources until next payroll. In this scenario, they can request additional computing resources from the company's private cloud, allowing them to complete payroll. When payroll is finished, finance releases those resources back into the general pool.

This is different than the traditional server model, where finance would have a set of servers configured for payroll. Three weeks out of the month, those servers sit idle and no one uses them. In the private cloud model, those computing resources are available to anyone during that 3-week stretch.

Example of implementing a private cloud

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