Six ways hosted private clouds add value to enterprise business

As organizations regain control by returning to the cloud, models that incorporate the private cloud – either as is or in combination with the public cloud – meet organizations’ needs in a cost-effective, agile and controlled manner, while providing tremendous security.

The private cloud is making a comeback, and it’s all thanks to the generative AI gold rush. Fear of AI data leaks and cost uncertainty have caused CIOs to rethink future cloud strategies. Today, the seemingly outdated private cloud, which is either hosted by a partner or is an on-premises solution, is getting another look—and more so. Because they feature a single-tenant cloud infrastructure, they are ideal environments for enterprises and industries with sensitive data, including healthcare, finance, and government. Although companies are moving to the private cloud at a record pace, some are still hesitant to take the plunge. Here are six ways adopting a private cloud can create a number of benefits for the business and add immense value.

1. Private cloud storage: Secure storage is one of the key selling points of private clouds. For companies working in sensitive areas with confidential data, such as financial institutions, it allows them to protect and control access to that data. For example, only team members or administrators who have been granted the necessary permissions can access and interact with customer data over a private connection such as a VPN (virtual private network).

2. Compliance and data protection requirements: Some industries have very sensitive data or have very strict compliance standards that can compromise security. Due to limited access, a private business cloud environment can meet compliance standards required by law. It is also perfect for companies and businesses that need to comply with legal regulations or adhere to data privacy regulations. For example, healthcare companies need to protect sensitive patient data from exposure or hacking. Private cloud environments allow such healthcare organizations to employ physical and administrative controls for storage and backup.

Basically, you have to be part of the organization to be privy to the internal network and try to breach the firewall. Quite simply, because the private cloud is, well, private, it is not as easily accessible as the public cloud, since those who do not have access do not even know it exists.

3. Hybrid multi-cloud strategy: Contrary to what many believe, the private cloud plays a crucial role in a hybrid multi-cloud environment. For example, a bank can follow a hybrid cloud strategy and use a public cloud to test and develop new applications for its mobile app, such as a customer loyalty program. At the same time, it can store sensitive customer information in a private cloud and thus maintain confidentiality. Security and scalability go hand in hand in this strategy, giving organizations and businesses the flexibility and control to choose the best cloud environment for each individual workload. However, the security aspect cannot be maintained without the use of the private cloud.

4. Enable application modernization: Application modernization is when an organization upgrades its existing applications to a cloud-first model. This process, also known as legacy modernization, ensures a smooth transition of an organization’s on-premises applications to a private, public, or hybrid cloud. Today, more and more companies and enterprises are using private clouds to modernize legacy applications as part of their application modernization. Since private clouds can be customized to handle sensitive data and workloads, this enables and ensures a smooth and secure transition to the cloud.

5. Edge computing: Edge computing is a decentralized approach that brings computing power and storage closer to where data is created, or at its “edge.” Private cloud infrastructure can be deployed at this “edge,” allowing sensitive data to be processed locally. For example, companies can leverage IoT and deploy smart grids to better monitor and manage their energy consumption. Real-time visibility allows energy companies and other businesses to win new deals and even try to increase green energy consumption.

6. Cost control: In the past, private cloud infrastructure was built specifically and primarily for one organization, resulting in high upfront costs. However, this ensures that there are no surprises and the organization knows what their monthly bill looks like. While scaling may require a lot more planning, the fact is that such a cloud environment can be budgeted accordingly. This is why organizations that require large amounts of resources often opt for a hybrid cloud model as they can use a private cloud and budget their expected processing needs accordingly. After that, they can set up a public cloud for deployment to quickly scale up and down. In fact, private cloud services for on-demand businesses have gained tremendous popularity over the last three years and have brought significant improvements.

It is also important to note that today, enterprises are beginning to leverage the capabilities of generative AI in cloud environments, including the private cloud. For example, generative AI models can significantly strengthen cloud security by analyzing historical data and identifying anomalies and patterns in the private cloud infrastructure, thereby uncovering any threats in real time. As enterprises regain control through cloud repatriation, models that incorporate the private cloud either as-is or in conjunction with the public cloud meet enterprise needs in a cost-effective, agile and controlled manner, and provide tremendous security.

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