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Private cloud computing refers to cloud services that are intended for a single business or organization, unlike public cloud services, which are aimed at various clients. The private cloud model has different goals and objectives, and different kinds of setups, whose concept is to allow companies to achieve cloud functionality without the downsides of sharing network infrastructure with other cloud tenants.
Traditionally, a multitenant cloud approach has allowed cloud computing vendors to offer better scalability, cost control and consistent service provision. The multitenant cloud approach allows for efficiency, in the same way that a single teacher is paid to teach 25 to 30 students in a single classroom. As cloud computing developed, the benefits of having multitenant systems allowed companies to scale up or down with services easily and to just pay for what they used, which was considered a major benefit.
With private cloud, the company either tries to build out the cloud functionality by itself or hire a dedicated third-party company to build a system that serves only that particular end client. This is often done through common strategies, including virtualization and data center automation. For example, servers and data storage units can be virtualized into elements called virtual machines that can be collectively managed by administrators.
The emergence of private cloud computing service models has led to the controversy about how far companies can practically go with this kind of dedicated service, and whether or not this strategy will really benefit the average business. Experts talk about businesses trying to step into a private cloud computing environment incrementally, without putting all of their infrastructure "into a cloud" - as it emerges, private cloud computing continues to compete with public cloud models, working on concepts like resource pooling, rapid elasticity and scalability of services.