* [Topics](/en/topics "Topics") * What is private cloud? What is private cloud? ====================== Published November 6, 2019•*3*-minute read Copy URL Jump to section --------------- OverviewHow do they work?Managed private cloudsWhy use them?Private cloud storageWhy Red Hat Overview -------- Private clouds are [cloud environments](/en/topics/cloud-computing) solely dedicated to the end user, usually within the user’s firewall. Although private clouds traditionally ran on-premise, organizations are now building private clouds on rented, vendor-owned data centers located off-premise. All clouds become private clouds when the underlying IT infrastructure is dedicated to a single customer with completely isolated access. [Learn how Red Hat helps you build your private cloud](/en/topics/cloud-computing/why-choose-red-hat-cloud "article | why build a Red Hat cloud") How do private clouds work? --------------------------- Private clouds rely on a handful of various technologies, but understanding how [virtualization](/en/topics/virtualization) works is the key to understanding how private clouds work. A private cloud uses virtualization technology to combine resources sourced from physical hardware into shared pools. This way, the cloud doesn't have to create environments by virtualizing resources one at a time from a bunch of different physical systems. A scripted IT process can just grab all those resources from a single source—like a data supermarket. Adding a layer of [management](/en/topics/management) software gives administrative control over the infrastructure, platforms, applications, and data that will be used in the cloud by helping cloud admins track and optimize use, oversee integration points, and retain or recover data. When the final [automation](/en/topics/automation) layer is added to replace or reduce human interaction with repeatable instructions and processes, the self-service component of the cloud is complete and that bundle of technologies is now a private cloud. ### Building a private cloud [Cloud infrastructure](/en/topics/cloud-computing/what-is-cloud-infrastructure) refers to the components needed for cloud computing. The basic elements of cloud infrastructure are the same whether you have a private cloud, [public](/en/topics/cloud-computing/what-is-public-cloud) cloud, or [hybrid](/en/topics/cloud-computing/what-is-hybrid-cloud) cloud. All clouds require operating systems—like [Linux®](/en/topics/linux/what-is-linux)—but the infrastructure can include a variety of bare-metal, virtualization, or container software that abstract, pool, and share scalable resources across a network. You can build a private cloud on your own using resources dedicated solely to you, or use prepackaged cloud infrastructure like OpenStack®. [Build a private cloud with Red Hat® OpenStack Services on OpenShift®](/en/technologies/cloud-computing/openstack-services-on-openshift) Red Hat resources ----------------- [Keep reading](/en/resources "Keep reading") Managed private clouds ---------------------- With private clouds, you're completely responsible for all costs at all times. You staff, manage, and maintain all underlying infrastructure. But private clouds can also be delivered by cloud providers as part of a managed private cloud approach. Managed private clouds let customers create and use a private cloud that's deployed, configured, and managed by a third-party vendor. It's a cloud delivery option that helps enterprises with understaffed or underskilled IT teams provide better private [cloud services](/en/topics/cloud-computing/what-are-cloud-services) and infrastructure to users without the day-to-day complexities of managing a private cloud themselves. The bare-metal IT infrastructure used by cloud providers can also be abstracted and sold as [Infrastructure-as-a-Service (IaaS)](/en/topics/cloud-computing/what-is-iaas), or it can be developed into a platform sold as a [Platform-as-a-Service (PaaS)](/en/topics/cloud-computing/what-is-paas). [Learn more about managed private clouds](//redhatstackblog.redhat.com/2017/05/10/using-openstack-leveraging-managed-service-providers/) Why use private clouds? ----------------------- Private clouds are the ideal solution for IT leaders who want to make enterprise resources available on-demand, but can’t (or don’t want to) move to the public cloud. This can be due to security policies, budgets, compliance requirements, or regulations, like those that define the healthcare and [financial service](/en/solutions/financial-services) industries. Companies in these industries use encryption protocols and firewalls to secure their IT systems, but private clouds add an extra level of security—compared to public clouds—because access is limited. Whether or not you invest in private cloud infrastructure also depends on the workloads that need to be supported. Traditional, stateful workloads are well supported by enterprise virtualization products. But stateless, loosely coupled workloads—typically found in [development](/en/success-stories/rackspace), research, and telecommunications (particularly network functions virtualization)—are better supported by private clouds. ### Private cloud benefits Private clouds reduce instances of underused capacity. They allow the enterprise to automatically configure and reconfigure resources in any way it wants, since those resources aren’t restricted by their physical installations. Private clouds provide additional benefits, such as: * Increased infrastructural capacity to handle large compute and storage demands * On-demand services using self-service user interfaces and policy-based management * Efficient resource allocation based on user needs * Increased visibility into resources across the infrastructure [Learn more about migrating to a private cloud](/en/topics/automation/what-is-cloud-migration "article | What is cloud migration? And how can automation help?") Private cloud storage --------------------- Big data and the [Internet of Things (IoT)](/en/topics/internet-of-things) have made private cloud [storage](/en/topics/data-storage) very important to businesses, particularly in an era where it can difficult to appraise the value of a byte until long after it was created. Private clouds use something called [software-defined storage (SDS)](/en/topics/data-storage/software-defined-storage) to archive and sort data. One of the more common SDS solutions for private clouds—particularly those deployed using OpenStack®—is Ceph. Ceph is the open source project behind [Red Hat Ceph Storage](/en/technologies/storage/ceph), and it works well with clouds because it unifies object, block, and file storage into a single resource pool. [Learn more about cloud storage](/en/topics/data-storage/what-is-cloud-storage) Why Red Hat ----------- This video can't play due to privacy settings To change your settings, select the "Cookie Preferences" link in the footer and opt in to "Advertising Cookies or try disabling adblockers." Because each private cloud is unique, and building unique private clouds by yourself can get exponentially expensive. That's why we developed a bunch of cloud solutions that let you build a unique private cloud from wherever you are right now. Already have a virtual infrastructure? [Red Hat® OpenStack Services on OpenShift®](/en/technologies/cloud-computing/openstack-services-on-openshift) runs off the virtual resources you've already deployed. [Continue reading](/en/topics/cloud-computing/why-choose-red-hat-cloud) Resource Red Hat a Leader in 2025 Gartner® Magic Quadrant™ for Cloud-Native Application Platforms ---------------------------------------------------------------------------------------- Read the 2025 Gartner® Magic Quadrant™ for Cloud-Native Application Platforms report to learn about a “Leader” in security-focused cloud service solutions. [Read the report](/en/engage/gartner-magic-quadrant-cloud-application-platforms-analyst-report "Red Hat a Leader in 2025 Gartner® Magic Quadrant™ for Cloud-Native Application Platforms") All Red Hat product trials -------------------------- Our no-cost product trials help you gain hands-on experience, prepare for a certification, or assess if a product is right for your organization. [Keep reading](/en/products/trials "All Red Hat product trials") Keep reading ------------ ### What is hybrid cloud? Find out more about hybrid cloud, a combination of computing environments that share information and run a uniform series of applications. [Read the article](/en/topics/cloud-computing/what-is-hybrid-cloud "article | what is hybrid cloud") ### What's the difference between cloud and virtualization? Learn the key differences between virtualization and cloud computing, their definitions, configurations, costs, scalability, tenancy, and security benefits. [Read the article](/en/topics/cloud-computing/cloud-vs-virtualization "article | what's the difference between cloud and virtualization") ### Why are financial services slow to adopt the cloud? Find out why the financial services industry is slow to adopt the cloud, and why it's still a good idea to get started. [Read the article](/en/topics/financial-services/why-financial-services-are-slow-to-adopt-cloud "article | Why are financial services slow to adopt the cloud?") Hybrid cloud resources ---------------------- ### Related content * Overview [Optimize ITOps efficiency with a scalable blueprint](/en/engage/optimize-itops-efficiency-overview) * Blog post [SAS Viya Platform with Red Hat OpenShift – Part 1: Reference Architecture and Deployment Considerations](/en/blog/sas-viya-on-red-hat-openshift-part-1-reference-architecture-and-deployment-considerations) * Blog post [SAS Viya Platform with Red Hat OpenShift – Part 2: Security and Storage Considerations](/en/blog/sas-viya-on-red-hat-openshift-part-2-security-and-storage-considerations) * Blog post [AI in telco – the catalyst for scaling digital business](/en/blog/ai-telco-catalyst-scaling-digital-business) ### Related articles * [Linux for cloud computing](/en/topics/linux/linux-for-cloud-computing) * [What is cloud migration? 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