The rapid progress of virtualization has shaken up traditional ideas about the cloud. Virtualized clouds can achieve levels of performance, stability and security that used to require dedicated hardware. The virtual private cloud vs. private cloud distinction is still new, but it is already yielding tremendous benefits for enterprise cloud services.
Virtual Private Cloud vs. Private Cloud — Evolving the Landscape
Traditionally, the term “private cloud” has been used to refer to dedicated physical resources, administered offsite for a single organization. In a private cloud hosting environment, the IT managed services provider builds, configures and runs a landscape to a single organization’s specifications. The alternative is a multitenant public cloud environment, where organizations buy compute in a large, shared pool of resources.
Choosing between these two cloud hosting options inevitably involved tradeoffs. The managed private cloud had more comprehensive service, better data isolation and security, and better performance, but in many cases it couldn’t scale up quickly, since organizations only received the resources they bought ahead of time. The public cloud was less expensive and more scalable, but didn’t have the customizability, support, reliable performance or security of a managed cloud (a problem that still persists today).
Virtual Private Cloud vs. Private Cloud — Changing the Game
Virtual private clouds synthesize the two approaches to create a private cloud landscape on public cloud infrastructure. Like the public cloud, VPCs are multi-tenant, but each tenant has their own customized landscape, with greater isolation and more support. From the user’s perspective, the VPC performs like any other private cloud on a day-to-day basis. However, there are distinct benefits of the virtual private cloud over both private and public cloud computing.
Virtual Private Cloud Benefits
The virtual private cloud offers better resource allocation than the public cloud, leading to more consistent performance. Unlike the public cloud, virtual private cloud providers over-provision and isolate each user’s resource pool, ensuring that demand surges don’t lead to performance degradation.
Better control is one of the most important virtual private cloud benefits over public cloud computing. Users can control where the data is located, supporting hybrid cloud adoption, as well as enhanced security and compliance needs. For example, VPCs are often ideal for multi-tenant cloud computing in finance, since they allow users to isolate PCI data at a lower cost than traditional private cloud hosting.
The benefits of the virtual private cloud vs. the private cloud include lower cost and greater flexibility. The economy of scale makes hosting more affordable, and the shared resource pool allows users to scale up quickly and economically. In fact, for demanding workloads like the SAP HANA cloud, VPCs often make rapid scaling more competitive than in a public cloud as well. The vendor can configure a customized cloud to break virtualization limits or facilitate future upgrades, eliminating much of the disruption and complexity usually associated with complex ERP projects.
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