01/07/2011 Private cloud is an in-house cloud computing option that offers hosted services to a limited number of people from behind an organization's firewall. Enterprises are showing greater and greater interest in private clouds, as concerns about cloud computing security have led many organizations to value the dependability of an on-premise cloud option. What is a private cloud? It resides inside your data center (on-premise), giving IT managers complete control over the available resources. A typical private cloud relies on the security measures available within the cloud and the data center. It automates workflows and takes out human tasks like configuring routers and load balancers.