Today, about a third of organizations rely on private clouds, and many companies embarking on the cloud journey want to know whether a private cloud is the right move for them; they also want to ensure that there are no security concerns. Without going too far into those debates, there are certainly advantages to moving to a private cloud. But there are disadvantages as well; again, it is capital and resource intensive to set up. However, running a private cloud can lead to significant resource savings, but some organizations do not have enough tenants to make hosting their own cloud worth it.
VPCs give you the best of both worlds in that you’re still running your applications behind your firewall, but the resources are still owned, operated, and maintained by a VPC vendor. You don’t need to acquire and run all the hardware and server space to set up a private cloud; a multi-tenant cloud provider will do all of that for you––but you will still have the security benefits of a private cloud.
In order to run a private cloud as though it were on-premises and get similar benefits to having a public cloud, you need a multi-tenant architecture. It helps to be a big company with many departments and divisions that all use the private cloud’s resources. Private clouds work when there are enough tenants and resource requirements are ebb and flow so that a multi-tenant architecture works to the advantage of the organization.