Thursday, February 22, 2024

The Private Cloud Market

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Private cloud, also known as corporate or internal cloud, is a type of cloud computing where cloud infrastructure is dedicated to a single customer.

Companies with highly variable network needs often use private cloud in order to ensure they have full control over the cloud environment and sufficient access at all times.

See below to learn all about the global private cloud market:

Private cloud market

The private cloud market had an estimated value of $60.3 billion in 2020. Expected to maintain a compound annual growth rate (CAGR) of 29.6% from 2019 to 2025, it is estimated to reach a value of $205.4 billion by 2025.

Several geographic regions are driving demand in the private cloud market:

  • The U.S. market had the largest market, with an estimated value of $10.6 billion in 2020
  • The Chinese market is the second largest, forecast to grow at a 19.4% CAGR, reaching a value of $22.2 billion by 2027
  • Japan and Canada are forecast to grow at 17.3% and 16.9% over the period from 2020 to 2027
  • Within Europe, Germany has one of the highest CAGR rates at 13.9%
  • The Asia-Pacific region, led by Australia, South Korea, and India, has one of the highest growth rates, with a CAGR of 27% from 2020 to 2027

By industry, several sectors are driving private cloud demand:

  • Banking, financial services, and insurance (BFSI)
  • Retail
  • Health care
  • Manufacturing
  • Government
  • Education

Private cloud features

Private clouds are single-user environments. They can be hosted on-premises, owned, and managed by the entity that uses them through an internal network. Alternatively, private cloud is available as a cloud computing offering from third-party tech providers.

With either type, the private cloud is only accessed by one tenant. A private cloud contains several key elements, such as:


Virtualization combines the physical resources, combining their computing power, storage, and memory into a virtual cloud environment.

Service catalog

A service catalog allows cloud users to choose from applications and services.

Management software

Management software is the brain of the cloud environment. Its centralized control enables the cloud admin to optimize for security, availability, and resources.

Task automation

Task automation covers server provisioning and integrations, reducing the burden on the IT team.

User portal

The user portal is how end users interact with the private cloud. It enables access for users to configure and manage the cloud and access the offered resources.

Benefits of private cloud

The benefits of using a private cloud vary depending on whether the solution is hosted on-premises or a service from a third-party provider.

Some of the most common advantages of using a private cloud include:

  • Cost reduction
  • Efficient resource utilization
  • Complete control
  • Boosted security and privacy
  • Remote availability
  • Business continuity
  • Achieve regulatory compliance
  • Improved reliability
  • Increased flexibility

“Research firm 451 Research found in a 2017 survey that more than 40% of respondents saved money by pursuing a private cloud versus a public one. These respondents identified automation, capacity-planning tools, and flexible licensing arrangements as the key drivers of those cost savings,” says Litton Power, a contributor at IT Business Edge.

“Data protection and asset ownership and integration with business processes were the highest-ranking decision points for companies that chose to operate a private cloud.”

Private cloud use cases

The following case studies highlight how organizations in different industries use the private cloud to grow and improve their in-house and cloud infrastructure.

Hand in Hand India

Hand in Hand is a global, non-government organization (NGO) that’s dedicated to improving the living conditions of impoverished children and women around the world. Hand in Hand India is expanding in more than eight key states, offering programs in eliminating child labor, natural resources management, and solid waste management.

The organization wanted to prevent downtime and performance issues that could compromise its programs. Additionally, it needed a cost-effective solution to scale its operations in order to reach more people.

Working with TATA Communications, Hand in Hand India used its IZO Private Cloud solution for its infrastructure.

“IZO Private Cloud, a rock-solid IT solution, along with Tata Communications’ personalized support, keeps our network, website, and other critical applications, always on, enabling seamless welfare programs and an enhanced user experience,” says Raghuraman SG, GM of IT and systems, Hand in Hand India.

“While spinning up its resources to enable new strategic projects is just a call away, enabling our borderless growth across the country.”

Hand in Hand was able to reduce downtime by 99.99% and secure its environment with a zero data loss guarantee.

Star UC3M

Star UC3M is the rocketry association team at the Carol III University of Madrid. Looking to become a reliable resource in the field of rocketry in Europe, Star developed advanced launchers to elevate their university’s amateur status in rocketry.

Behind every mission, the team has to run a heavy load of data through complex computing processes and calculations. As projects grew in scale, the team started facing bottlenecks in the computational working memory.

Collaborating with Stackscale, the Star association was able to acquire the computing resources they needed through the private cloud.

“Progress in the development of launchers is usually exponential and so it has been for Star, both in terms of members and technological advances. In its first year as an association, Star had less than ten members, who carried out two successful launches with their first vehicle: Rattlesnake,” says the Star team.

“Stackscale’s infrastructure enables us to have more flexibility regarding the analysis we can perform and to accelerate the design, validation, and verification process of the vehicle.”

The team now has 64 members that are able to use Stackscale’s computing power to innovate and work on bigger projects.


Ahd is an IT service provider that primarily works with customers in the automotive, health care, and education industries. Based in Germany, ahd solves IT problems through a holistic approach that looks at the cloud and on-premises infrastructures.

To allow customers to take advantage of its cloud services while meeting strict European data sovereignty regulations, ahd decided on using NetApp Private Storage (NPS). The solution enables ahd customers to combine its services with public cloud services, such as Microsoft Azure and AWS. 

“With NPS, we can offer customers the flexibility to switch between clouds for compute resources, while keeping data secure in our data centers,” says Thomas Drewermann, cloud architect, ahd.

Ahd was able to achieve multicloud flexibility, without sacrificing data control for regulatory compliance.

Private cloud providers

Some of the leading vendors in the private cloud market include:

  • Citrix
  • Red Hat
  • Dell Technologies
  • Cisco
  • IBM
  • Microsoft
  • SAP
  • AWS
  • Hewlett Packard Enterprise (HPE)
  • Oracle

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