Cloud Deployment Models

What is a Private Cloud Deployment Model?

Updated on: October 27, 2026

Author: Ioana Grigorescu, Content Manager

Reviewed by: Marta Dozorska, VP of Product

Maintain control over your cloud environment with a private cloud. Learn about its types, advantages, disadvantages, and how it compares to public cloud for SaaS deployments.

What is a Private Cloud?

A private cloud is a cloud computing model that serves a single organization exclusively. This means that all the company’s resources, like servers, storage, and networks, are not shared with any other users. Under NIST SP 800-145, a private cloud may be owned and run by the organization, a third party, or both, and may sit on-premises or off-premises.

A private cloud gives companies control over their resources and customization for businesses handling sensitive data or needing to meet strict regulatory compliance compared to public cloud options, where resources are shared among multiple users.

Tip

Choose a private cloud if security, compliance, and customization are your top priorities, or for steady workloads and legacy applications that are hard to move to a public cloud. Make sure you have the budget and IT skills to manage it, or be ready to pay for a managed service.

What is the difference between public and private cloud deployment models?

The key difference is in how the available resources are distributed. A public cloud is actually multitenant, where many users make use of resources simultaneously, while a private cloud is single-tenant, meaning all resources are exclusively used by an organization. This difference gives private clouds greater security, customization, and control but with additional and possibly higher costs.

What are the three main types of private cloud computing?

A private cloud may exist on or off premises and be run by a third party (NIST). The main types of private cloud are:

On-Premise Private Cloud: The infrastructure is set up on-site at the organization’s data center. This setup gives the organization full control but demands a high level of IT expertise.
Hosted Private Cloud: A third-party company manages the equipment and systems away from the office to reduce the workload for the internal IT team.
Managed Private Cloud: Similar to the hosted cloud, the provider also provides maintenance, security, and updates; thus, the approach is fully outsourced to the service provider.


Characteristic	On-Premise Private Cloud	Hosted Private Cloud	Managed Private Cloud
Infrastructure Location
Physical Setup	Within organization’s data center	Managed by third-party offsite	Managed by third-party offsite
Management Responsibilities
IT Management	Full internal IT team control	Reduced internal IT workload	Fully outsourced to provider
Maintenance	Handled internally	Third-party manages equipment	Provider handles maintenance
Additional Services
Security Updates	Managed internally	Limited third-party support	Comprehensive provider support
Expertise Required	High level of IT expertise needed	Moderate IT skills required	Minimal internal expertise needed

Can SaaS be deployed on a private cloud?

Yes, you can use Software-as-a-Service (SaaS) applications on a private cloud. This is useful primarily for those who want more control over the software that they use or want to integrate SaaS apps with on-premises software.

What is the disadvantage of private cloud deployment?

The primary disadvantage of private cloud is cost. Though it is quite expensive compared to other clouds, the private cloud gives an organization its own infrastructure in return. It often costs more than public cloud options because of the need for dedicated resources and infrastructure, as well as possible management and maintenance costs. Plus, it may require more in-house IT expertise to set up and manage effectively.

A private cloud combined with a public one forms a hybrid cloud; compare the public cloud model too.

Conclusion

Private cloud is a cloud computing model dedicated to organizations that prioritize security, customization, and control over their data and applications.

Although it may not be the most cost-effective option, the added security and customization it provides can be crucial for some businesses. If you manage sensitive information or require a customized cloud setup, a private cloud can be the solution.