The private cloud is frequently thought of as just like the public cloud, despite their dissimilarities, reports Dell. While it is true that the public and private cloud both serve essentially the same function – they both provide on-demand self service, resource pooling, rapid elasticity, and broad network access – they function in fundamentally different ways. A public cloud is made up of a deployment of servers that rented to a large amount of companies to perform a huge batch of wildly different tasks, but a private cloud is used by one organization to do a great variety of server-related activities related to whatever they need.

While frequently public cloud costs look cheaper, this is because they are resting on the economy of scale a public cloud host has. When a given server can be leased to many clients all at once, a public cloud hosting provider can afford to charge less. But this scenario ignores the long-term costs of renting from a public cloud company. Cloud computing costs will not go up, but per-month expenditures can be reduced to personnel and technical support with a private cloud host, which will likely reduce costs in the long run.

Privacy and security
The public cloud presents major security concerns for users. While snooping from cybercriminals is an often overblown concern (they do tend to employ strong security officers) the real problem is being subpoenaed. If a government agency subpoenas data, most cloud providers have it written into their contract that they will automatically turn the data over without rendering notice to whoever owns the information, says TechPageOne.

Encryption protocols are extremely important for keeping data secure anywhere, and should even be considered in private cloud settings. Although private clouds are intrinsically safer to store data in due to the fact that they are self-contained and company owned, there are still safeguards that companies should follow in order to guarantee that their files are safe. Keeping information safe in the private cloud is primarily an exercise in implementing those network stipulations that keep documents safe when they're hosted locally: Firewalls, clean environments, and control over inputs and outputs are the best way to keep a private cloud clean, Net Security reports. Legal requirements and stipulations may force enterprise clients that work in fields with confidential information to host their data on private clouds in order to avoid accidentally violating confidentiality laws.

Enterprise cloud clients will have the most secure experience in the cloud if they treat it as an extension of their current network infrastructure. In general, most organizations are staying clear of open source cloud software because of fear over possible vulnerabilities, and using proprietary systems. It remains to be seen whether or not new advances will change this. One of the major ways that private cloud computing can benefit enterprises is through its ability to secure backups quickly and easily on an automated cycle. In this way, private cloud presents a strong security bonus.