This has many of the advantages of cloud computing without the risks that cause executives to hesitate. With private hosting the data is stored in a closed environment protected by appropriate firewalls. Although the data is hosted by an outside organization any security concerns are far less than would be the case with public hosting.
The benefits of a cloud host include the possibility of employing fewer full time IT staff because system maintenance may be performed by the hosting service provider for a reasonable price. The enterprise may keep IT staff to perform high value operations such as the development of innovative systems rather than routine maintenance functions.
This type of solution provides a service that reduces the need for an enterprise to purchase extra hardware to increase its capacity. Instead it can retain the same server capacity and call on the service provider when there is a need to increase capacity for a period of time.
By choosing this option the enterprise may pay fees only for the capacity that is actually needed. It is no longer necessary to incur unnecessary costs on extra capacity that may be wasted. The flexibility of the cloud is a strong argument in its favor.
This combination of security and flexibility may be the correct solution for many different types of enterprise. In particular it may be the ideal solution for the small or medium enterprise that cannot take on the large numbers of IT staff that would otherwise be required to maintain the level of systems that they require.
A smaller enterprise may pay only for the capacity that it will need to use at any time and the task of maintaining systems can be handed over to a third party for a competitive fee. The level of maintenance can be adjusted at different times resulting in lower fees when less work is needed. This type of flexibility is preferable to taking on extra IT employees who would need to be paid even at times when they are not working at full capacity.
The service provider may increase the security of their client by providing security audits if needed. These can look at any possible vulnerability in the systems of the client and take steps to render them more secure. This computing option may therefore turn out to be more secure than in-house solutions.
Another boost for system security is the possibility that the service provider can ensure that appropriate backup is always available so the client company can survive any major problem with its systems. This could be part of a more comprehensive disaster recovery plan that would make provision for the worst case scenario.
Private cloud hosting may therefore provide a cloud computing option for a wide range of enterprises of all sizes. An alternative that once seemed out of reach can become reality for large and small enterprises.
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