While spending on conventional IT has declined, private cloud deployments have grown by 16.2 percent, according to Market Realist's analysis of IDC Research. In general, groups that have more to lose from security breaches or that handled more sensitive data tend to lean toward private cloud hosting for a number of reasons.

A major advantage of the private cloud is its customizability. Public cloud options are one-size-fits all in terms of their approach to data infrastructure and security options, and many larger companies simply don't fit into the models that public clouds offer. Enterprises want to build private networks that can be secured according to internal standards and protocol. This offers superior privacy that is fundamentally more secure than public cloud security options. If a private cloud network functions differently from most other networks it will be exponentially harder to breach because it will have an individualized security infrastructure geared toward keeping hackers at bay.

There are fewer legal issues involved with private cloud hosting solutions, which is very beneficial to enterprise customers who deal with multiple countries or states, or who host private information that requires a high level of security. Any health care or rehabilitation firm may find itself in a legal pickle if it adopts public cloud hosting, but could simply design a private cloud in order to host information securely while still allowing it to be used and transmitted to mobile devices. Private clouds can also be set up for regular back-ups, AVNetwork points out, which are vital for all enterprises.

Scalability
Both public and private cloud options provide users with a degree of scalability. The difference involved with them is that, in general, the scale to which a company involved with the private cloud hosting is essentially infinite, whereas there is a direct cap on public cloud hosting past a certain point. A major advantage of the new technology for enterprise customers and other groups whose IT budgets are one of their biggest concerns, the investment in scalability past severs already established is not a problem due to the breakthrough. Once servers have been invested in maintaining a private cloud, a company can then use those servers however they like, up to and including liquidating them should that become appropriate or even finding ways of stringing them together through these new, ultra-fast cloud-to-cloud interactions. Cloud computing costs incurred developing infrastructure should not be looked at as costs, but instead as investments in the future of a company. Major companies like Google and Apple, for example, run their own private cloud servers and have cut costs drastically by employing innovative methods of cooling them through solar panels and other eco-friendly features. These are not the kinds of innovative steps that a company hosting on the public cloud can make.

Security
Due to the change in how fast major clouds can swap information with each other, private clouds can be treated as much more secure locations for data to be stored. In the event of any sort of major disaster in any area in which a data center is located, they can be set to an "emergency transmission" where they send all of their data to another data center for an enterprise's cloud. This means that even in the case inclement weather or natural disaster, data can be saved and quickly routed away from harm.

Ownership
A major benefit of cloud computing is the ability to send data to employees around the world. Owning the means whereby this data is transmitted is a great boon for a corporation that wants to make sure that their workers are getting the information securely and reliably without downtime. In case of emergency, private cloud servers have the ability to deal with problems as they happen. On-site technical support can work around the clock to get a privately-hosted cloud server up with no worries about whether or not it might cause a contractor's bill to swell with overtime charges. On-demand technical support from staff is what companies pay their technical departments for. This also allows for better pre-disaster planning, allowing emergency plans and company-specific tailored backups in order to ensure the survival of essential data, no matter how bad any disaster is.

Cloud computing through private servers will allow enterprises and smaller companies to create, share, distribute and secure data worldwide. This kind of fluidity and ease of access is a major benefit of cloud hosting, and is a central reason why the technology is taking off across all industries even as IT spending via other means begins to flag. In the future, it will not be uncommon for every group to have its own private cloud network designed to take care of the messiness of networking and data storage while the rest of the company is able to focus on its essential objectives for the work day.