What is Private Cloud?

It is a model of infrastructure that delivers cloud computing services that are fully dedicated to a single organization. The single-tenant environment allows businesses to have all the advantages of a public cloud while having more secure and customizable cloud resources such as compute, storage, and networking.

How private cloud works →

Multiple vertical markets use OpenStack private cloud to set sales strategies that change how they communicate with clients. It’s a powerful, secure, and adaptable IT infrastructure that you can rely on.

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Fighting Off Certain Death with OpenStack Private Cloud

Deployment Methods

the on premise versus hosted cloud gif

There are two different kinds of deployment models: the hardware can either be hosted on-premise or at a service provider’s data center. The on-premise deployment model means that the company’s cloud infrastructure is hosted within its own data center. This offers a higher level of security but limits scalability due to the fact that physical servers need to be purchased and configured every time capacity requirements increase. This model also puts the weight of the capital and operation costs of the physical servers on the business. In the second deployment model, the cloud service provider bears the costs of acquiring and maintaining the physical servers, which results in more predictable monthly costs as it eliminates the unexpected fees of server repairs or replacement. Hosting a private cloud at a service provider’s data center also eliminates the requirement of having an in-house IT department to maintain, upgrade, or backup physical servers.

OpenStack Private Cloud

OpenStack is a collection of open-source software tools, components, and services that allow enterprises to build and manage an automated cloud infrastructure through public and private clouds. They also utilize customizable resources with on-demand network access for mission-critical workloads. Due to the sheer number of options for configuring highly-scalable resources with OpenStack’s ease of implementation, enterprises encounter substantial cost savings and an incredibly flexible system that can change rapidly with organizational growth.

OpenStack private cloud offers the functionality, flexibility, and support needed to build out and manage the type of system you require to manage your complex, sensitive data properly while increasing performance and reducing overall costs. There are also continuous updates to ensure that the infrastructure is up-to-date with the ever-evolving technology industry. Learn how you can easily upgrade to the latest version of OpenStack.


Test the power of OpenStack in a hosted environment

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OpenStack Projects You Can Run in a Private Cloud

Vexxhost Community Service and Cloud Infrastructure Management

OpenStack virtual machines deployed in less than 30 seconds

openstack octavia icon

High-performing load balancers


High-performing bare metal

OpenStack Project Swift Mascot

Reliable enterprise grade OpenStack cloud object storage


Identity authentication service

Magnum x Kubernetes

Containerized application management powered by Kubernetes

This collection only scratches the surface. Check out our extensive list of OpenStack projects and learn what these private cloud services include.

Benefits of OpenStack Private Cloud

An OpenStack private cloud solution is the logical solution to organizations’ problems surrounding the build and the maintenance of their infrastructure while trying to uphold compliance regulations and staying on top of security standards. OpenStack private cloud benefits make this possible since they include incredibly elastic capabilities, highly-scalable resources, on-demand services, cloud file sharing, broad network access, load balancing, resource pooling features, IT Ops agility, cloud orchestration, measured services, Big Data platform, key management, DNS Service, cost-effective strategies, and enable digital transformation projects. Also, strategic flexibility through private cloud makes it possible to innovate and keep on trend while maintaining freedom of choice when it comes to vendor and technology selection.

Benefits for Enterprises

Enterprises now realize that the private cloud provides a more stable solution for their security concerns by dedicating exclusive hardware to each user (game streaming and dedicated servers are examples) and fostering more opportunities for collaboration and investment. It is also a big part of the digital transformation, enterprise architecture, and adoption of enterprise resource planning, open APIs, AI strategies, and Cloud ERP systems happening worldwide. Instead of their data being stored off ‘in the cloud’, one can point to a group of servers in a data center and say that it is exclusively our data on those servers, thus alleviating security issues (serverless apps call for a different discussion). One private cloud solution that is gaining broad interest is OpenStack, which has become a de-facto standard for open-source-based private clouds. Benefits of OpenStack private cloud for enterprises are significant in ways like improved uptime, availability, and reliability at a lower cost than on traditional IT infrastructure, especially in combination with advanced technologies such as modern data warehousing and 5G and edge computing, MEC, Internet of Things, enabling smart learning and aiding various business applications, among others,

Benefits for DevOps

Private clouds have emerged as a strong solution and way forward for DevOps – get to know the benefits such a cloud environment brings in.


While developers require open ground to create software applications, OpenStack provides the essential liberty to each individual on a DevOps team. The source code for this cloud building platform is available on GitHub as OpenStack GitHub. With the possibility to add additional features such as images, the open-source infrastructure creates an ideal option with no boundaries or restrictions and enables open-source CI.

Service Liquidity

OpenStack encloses a list of liquid service, making cloud computing a natural process for software developers and operators, allowing DevOps teams to include a large number of services in their private cloud environment.


Multiple Access Routes

You are not biased when using OpenStack since it allows you to access and manage your platform through different pathways. You can access your platform using a GUI dashboard or use command-line tools to make changes to your platform. And that’s not all; you can also make use of OpenStack through RESTful APIs.

Private Cloud vs. Public Cloud

Private vs public cloud – what to choose? When opting for a private cloud, businesses reap many of the benefits than that of the public cloud. Additionally, security in the private cloud, with the help of firewalls and internal hosting, is used to ensure that sensitive information is not accessible to third-party providers. Private clouds are ideal for larger corporations or businesses working in highly regulated industries with strict governance obligations such as finance, health, and insurance. Private cloud pricing also differs from public cloud pricing. In addition, private clouds offer more in terms of customizability and virtualization, allowing businesses to curate the ideal solution to fit their workloads. 

It is important to note that private and public clouds are not mutually exclusive. A private cloud can be used in combination with the public cloud to create a hybrid cloud environment. By using a hybrid cloud, businesses can benefit from cloud bursting, which is the ability to expand and retract services based on changes in capacity needs. It allows businesses to scale computing services to the public cloud when computing demand increases.

Both deployment methods, as well as both the public and private cloud models, have their merits. The decision between which combination is best for a business depends on its budget, security considerations and related best practices, and scalability requirements.

Private Cloud

Public Cloud

– More secure: higher levels of control & privacy

– Pricing depends on the deployment model, cloud infrastructure provider, scale of the cloud, and other integrated features and services.

– More customizations regarding computing, storage, and networking

– Scalable

– Can create multiple machines for complex computing jobs

– Agile

– Easier to deploy

– Pay by the minute

– Zero maintenance

Industries that can benefit from OpenStack Private Cloud

Wondering what industries benefit most from a private cloud solution? From stronger collaboration when it’s needed most, flexible data storage to suit your organization’s needs and enable smart analytics, agile scalability of service, and top class security, an OpenStack powered private cloud solution may be exactly what you’re looking for. A private cloud computing solution allows a wide range of industries and professional services to have control over their IT workloads, hardware, software, and data. From industries such as AI Infrastructure, government, financial services, insurance, aviation, gaming, retail, oil and gas, agriculture, and fishing, we build our private cloud solutions such as a fully managed OpenStack cloud for all industries that need a solution that will be as agile as they are. Thinking about migrating to a private cloud successfully? Would like to know why you should switch to private cloud? We’re here to help.

Air Transport

Why choose VEXXHOST?

Cloud ecosystems consist of the resources and services provided or made available to the business in question by various suppliers, including partners, consultants, and even consumers. A private cloud can fit into such an ecosystem either in tandem with a public cloud, resulting in a hybrid cloud ecosystem or on its own through the network of suppliers, services, and applications.

Ensuring that your selected cloud vendor can deliver on all of your needs is vital. With VEXXHOST, whether the private cloud is on-premise or hosted by us, we can fully manage it or provide support as needed. 

VEXXHOST private cloud also offers several cloud solutions, including OpenStack consulting so that you can begin your cloud journey with confidence. VEXXHOST is also a contributing member of four prestigious open source foundations and being part of the communities adds to our passion in providing reliable solutions to our clients. For more information on how VEXXHOST can help you build, manage, and troubleshoot private cloud components, contact us!

“On our first attempt, we ran half a trillion links across 70 nodes which took about 80-90 days. Since we moved to the new VEXXHOST platform, it only takes 3 days!”

Jin Lee, Senior Data Scientist, Opta

Find out how VEXXHOST helped Opta manage Big Data workloads!

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Curious to know what you should look for and the best practices when choosing an OpenStack provider? Watch this video to learn some tips and tricks that can assist you with your search.

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