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A private cloud is built in the same manner as a public cloud, architecturally. The difference is in ownership. A private cloud belongs to a single company and contains data and services for use by that company. There is not a subscription service for the general public. In this case, the infrastructure may be built internally or hosted on third-party servers.

A private cloud is usually more customizable, and the company controls access, security, and privacy. A private cloud is also generally more expensive. There are no other customers to share the infrastructure costs. With no other customers, the cost of providing excess capacity is not shared.

A private cloud may not save on infrastructure costs, but it provides cloud services to the company's employees in a more controlled and secure fashion. The major cloud vendors provide both a public cloud and the ability for an organization to build a private cloud environment.

The primary advantage to a private cloud is security. With more control over the environment and only one customer, it is easier to avoid the security issues of multitenancy. And when the cloud is internal to the organization, a secure wipe of hardware becomes a possibility.