One of the most confusing IT technologies out there right now is the cloud. Of the different cloud terms that have been used, “private hosted cloud” seems to be the vaguest. If we can understand what a “private hosted cloud” is, the other cloud technologies should become more clear. After we finish defining what this technology is, we’ll talk about why you would want to use it.

Breaking down the “Private” in “Private Hosted Cloud”

There are two main categories of clouds: public, and private. We can better understand what “private” means by understanding its opposite term. Imagine that your friend told you he ate McDonald’s for lunch. You know what the service is—it’s McDonald’s, obviously. But you don’t know where that McDonald’s was located. Was it the McDonald’s down the street, or the one in a nearby town? Keep that in mind, and now let’s think of AWS (Amazon Web Services)—one of the most popular cloud technologies. Similar to that McDonald’s scenario, you know what services are being provided, but you don’t actually know where that service is being provided from. In fact, one of the distinguishing elements of the public cloud is that you can’t point physically to where the service is being provided. Basically, Amazon—and all public cloud providers—have countless data centers spread across the world. Your cloud services could be provided from a data center in California today and in Arizona tomorrow. In contrast, with a private cloud, you actually can point to the geographic location that your cloud services are being provided from. The service could be provided from any location your business owns—or even provided by a third-party data center.

Understanding the “Hosted” in “Private Hosted Cloud”

The term “hosted” contrasts with another form of a private cloud: “private on-premises cloud.” On-premises refers to any premises (location) owned by a company. So, if your cloud services are being provided from a location your company owns or rents, it’s a private on-premises cloud. With that understood, private hosted cloud refers to when a third-party provides you with cloud services from a location that they own. And unlike a public cloud, you actually can point to the geographical location that your services are being provided from.

Benefits of a Private Hosted Cloud

Now, let’s talk about the benefits of a private hosted cloud. Since a private hosted cloud is provided from a location owned by another company, it will require fewer employees from your company to manage it. Your provider will handle all the server hardware and software licensing costs—both can individually become quite expensive. You will also generally have access to support from your private hosted cloud provider. With a private hosted cloud, you have more ability to customize the service compared to a public cloud. You could opt for more specific server hardware and software, as needed. Because you can point to a geographical location that the data is being stored at, private hosted clouds are able to fulfill data compliance regulations that are more strict. Just like a public cloud, you benefit from easy scaling of data and computing power. Being able to scale down and up your services as needed eliminates the need to plan extensively for future business needs.

Concluding Thoughts on Cloud Services

While there are many more factors to keep in mind, such as cost of service, we’ve covered some of the main benefits of a private hosted cloud. The most important thing to keep in mind is that you’re not locked into using just one kind of cloud service—you can use a mix. Each form of cloud service has its own set of advantages and disadvantages. Consulting an expert can help you avoid pitfalls, such as paying for a cloud service that doesn’t match your business needs—something that can easily lead to unnecessary expenses.