A private cloud is also known as a single tenant environment, in which computing resources are rented by only one customer or company. The definitive element of a private cloud is that it is dedicated to meeting the needs of an individual company, with virtual private clouds representing the only exception to this rule.

Traditional private cloud hosting is a proprietary and customized infrastructure that, if not outsourced to a data center, is built on a company's premises and linked to its own private network.

Private hosting is not considered as utility computing, as it cannot be purchased in prepaid mode and has a fixed fee attached. Most of the time, the beneficiaries of such models prove to be large companies with a strong usability plan that helps them avoid over-provisioning or under-provisioning.

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