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Tuesday 28, October 2025

Difference between public and private cloud with example

Background

What is a private cloud?

A private cloud is a cloud computing environment designed solely and exclusively for a single specific organisation. Unlike the public cloud, resources (such as servers, storage and networks) are not shared with anyone else.

Everything is dedicated solely and only to you.

This gives you a level of security, customisation and control that is difficult to achieve in the public cloud, due to how it is composed and formed.

That is why many companies with sensitive data, such as banks, hospitals, or government institutions, prefer to use a private cloud, as their data remains private at all times without anyone outside the organisation being able to access it.

In a nutshell:

  • The public cloud is like a co-working space.
  • The private cloud is like having your own office.

Private cloud vs. public cloud vs. hybrid cloud

The difference between public, private, and hybrid cloud lies in how computing resources are managed and who can access them.

The public cloud

First of all, what is public cloud in cloud computing?

The public cloud is more like a shared space: cheap, easy to use, and instantly scalable. The downside is that you don’t have as much control, and security depends on the provider.

AWS, Google Cloud, and Azure are the best known. Perfect if you don’t have super-critical data and want to get started quickly.

The private cloud

Here, everything is yours. Customisation and security are outstanding, and it also allows you to comply with regulations without any issues.

The downside is that it costs more and you need someone who knows how to manage it well. IBM Cloud Private or VMware Cloud Foundation are clear examples.

The hybrid cloud

With this option, you combine your private infrastructure for what is super critical and use the public cloud to scale quickly when needed.

This gives you control where it matters and flexibility where you want to save most of your time and money. Microsoft Azure Arc or AWS Outposts are examples of how to do it right.

Private cloud models and types

On-premises private cloud

Physically installed within the company, offering complete control over hardware, software, and security.

Ideal for organisations with high compliance and privacy requirements.

Tip: If you handle highly sensitive or regulated data, such as financial or health information, this is your best option.

However, make sure you have an IT team trained to maintain and scale it as your business grows.

Virtual private cloud

It runs on shared infrastructure but guarantees an isolated environment for the company. It combines some of the advantages of a private cloud with more flexible management and lower costs.

Hosted private cloud

An external provider offers and manages the cloud, but the resources remain exclusive to the company. This reduces the operational burden while maintaining complete dedication to the infrastructure.

Tip: Use this if you don’t want to worry about hardware maintenance, but need your data to be isolated and secure.

Always ask about service level agreements (SLAs) to ensure that availability and security meet your standards.

Managed private cloud

The provider takes care of all operation and maintenance, including security, backups, and monitoring.

It is ideal for companies that want the benefits of a private cloud without the operational complexity.

Private cloud architecture

Main components

Dedicated servers and storage

Virtual networks and load balancers

Virtualisation and orchestration software (such as VMware, OpenStack, or Kubernetes)

Security and compliance

Includes encryption tools, multi-factor authentication, and access policies to protect sensitive data and comply with regulations such as GDPR or ISO 27001.

Scalability and performance

The architecture can be very easily scaled through virtualisation, allowing resources to be adjusted according to business demand.

Disadvantages of the private cloud

Key benefits

Total security and control: Everything is under your control, from who accesses data to how resources are managed. Ideal for complying with legal regulations such as GDPR or HIPAA.

Stable performance: Resources are not shared with other users or companies, ensuring that applications and services always run at maximum capacity.

Complete customisation: You can tailor infrastructure, security policies, and tools to the specific needs of your business. For example, banks or laboratories that handle sensitive data benefit greatly.

Drawbacks or limitations

Of course, not everything is perfect. The initial investment is higher than the public cloud, and daily operation requires staff with IT experience. If you don’t have trained people, maintenance or security issues can easily arise.

Another point is the scalability. Unlike the public cloud, where you can increase resources in seconds, scaling in the private cloud requires planning and, often, investment in additional hardware. That’s why it’s important to think ahead before implementing it: make sure your infrastructure can grow along with your business.

Private cloud use cases

It is used to protect sensitive data, such as that held by hospitals or banks, and to store critical information, such as customer databases or financial records.

It can also be used to modernise older applications, such as legacy systems used in large companies, and can be combined with public clouds for flexibility and scalability, as in Microsoft Azure Arc hybrid projects.

Furthermore, it is ideal for edge computing or artificial intelligence, for example, training AI models in research laboratories or processing local data in smart factories, where dedicated resources and maximum security are required.

How to implement a private cloud

Implementation steps

Step 1: First, you need to plan your infrastructure carefully: think about how many servers and how much storage you will need, how they will be connected, and how the cloud can grow alongside your business.

Step 2: Next, it’s time to select your hardware and software, because choosing the wrong ones can affect performance and stability. This includes servers, operating systems, and virtualisation tools.

Step 3: Next comes the architecture design, which refers to how all the components will interact, how you will manage data, and what measures you will take to avoid failures. Security must be implemented from the outset: encryption, controlled access, firewalls… don’t leave it for later.

Step 4: Finally, you need to test that everything works with performance and load tests before putting the cloud into production, so you avoid any surprises.

Best practices

It is essential to automate all tasks that can be automated, such as deployments or updates, so that you do not have to do everything manually, thereby minimising the possibility of errors. It is also very important to make regular backups and check that they can be restored correctly.

In addition, we recommend constantly monitoring cloud performance in order to detect any problems before they have a negative impact in our business.

Finally, ensure you comply with regulations such as GDPR or HIPAA from the outset, as the last thing you want is legal problems.

Private cloud Examples

Notable providers and tools

1. IBM Cloud Private – Ideal for companies seeking secure, managed environments with multi-cloud compatibility. However, it can be expensive and require technical expertise to take full advantage of all its features.

2. VMware Cloud Foundation – Allows you to build and operate a virtualisation-based private cloud, very popular with large corporations, but its implementation and maintenance can be complex and require a specialised IT team.

3. Red Hat OpenStack Platform – An open source option for companies that want technological independence, although it may involve more effort in configuration and support, especially if you do not have trained technical staff.

4. Naranjatec Private Cloud

  • EU location and GDPR: Your data always complies with European regulations.
  • High connectivity: Dual 10 Gbps fibre link via AMS-IX, low latency guaranteed.
  • Top performance: NVMe + processors >3 GHz per core, up to 128 vCores.
  • Management and backups included: KVM + Acronis virtualisation, weekly and monthly backups ready to use.

Final comparison: which cloud should you choose?

Between private and hybrid clouds, it is clear that the private cloud is the best option if you are looking for total control and maximum security, and you can also customise everything to your liking.

While the hybrid cloud offers a good middle ground in terms of flexibility and agility, the truth is that the private cloud guarantees that your data and applications are completely at your disposal 24/7, allowing you to comply with all types of regulations and protect the critical information your company handles.

Ultimately, the cloud is not just a form of technology: it is about the peace of mind and confidence that comes from knowing that you have your infrastructure under control, and that is precisely where the private cloud stands out from the other options.

FAQs

What is public and private cloud with an example?

A public cloud is when computing resources are shared over the internet and used by many companies at the same time, like Amazon Web Services (AWS). A private cloud is used only by one company and gives them full control over their infrastructure, like Naranjatec Private Cloud

What is an example of a public cloud?

Examples of public clouds include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These services allow multiple organizations to use the same physical hardware securely, with the provider managing the infrastructure.

Is Amazon (AWS) a public or private cloud?

Amazon Web Services (AWS) is a public cloud because it provides computing resources over the internet to many customers at the same time. Companies using AWS do not own the servers but can rent and scale resources as needed.What are the advantages of public cloud vs private cloud?

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