Definition

private cloud (internal cloud or corporate cloud)

This definition is part of our Essential Guide: Cloud application performance management: Doing the job right

Private cloud is a type of cloud computing that delivers similar advantages to public cloud, including scalability and self-service, but through a proprietary architecture. Unlike public clouds, which deliver services to multiple organizations, a private cloud is dedicated to the needs and goals of a single organization.

As a result, private cloud is best for businesses with dynamic or unpredictable computing needs that require direct control over their environments, typically to meet security, business governance or regulatory compliance requirements.

Private cloud vs. public cloud vs. hybrid cloud

There are three general cloud deployment models: public, private and hybrid.

A public cloud is where an independent, third-party provider, such as Amazon Web Services (AWS) or Microsoft Azure, owns and maintains compute resources that customers can access over the internet. Public cloud users share these resources, a model known as a multi-tenant environment.

By comparison, a private cloud is created and maintained by an individual enterprise. The private cloud might be based on resources and infrastructure already present in an organization's on-premises data center or on new, separate infrastructure. In both cases, the enterprise itself owns and operates the private cloud.

cloud deployment models
Compare private vs. hybrid vs. public cloud

A hybrid cloud is a model in which a private cloud connects with public cloud infrastructure, allowing an organization to orchestrate workloads across the two environments. In this model, the public cloud effectively becomes an extension of the private cloud to form a single, uniform cloud. A hybrid cloud deployment requires a high level of compatibility between the underlying software and services used by both the public and private clouds.

Pros and cons of private cloud

When an organization properly architects and implements a private cloud, it can provide most of the same benefits found in public clouds, such as user self-service and scalability, as well as the ability to provision and configure virtual machines (VMs) and change or optimize computing resources on demand. An organization can also implement chargeback tools to track computing usage and ensure business units pay only for the resources or services they use.

Private clouds are often deployed when public clouds are deemed inappropriate or inadequate for the needs of a business. For example, a public cloud might not provide the level of service availability or uptime that an organization needs. In other cases, the risk of hosting a mission-critical workload in the public cloud might exceed an organization's risk tolerance, or there might be security or regulatory concerns related to the use of a multi-tenant environment. In these cases, an enterprise might opt to invest in a private cloud to realize the benefits of cloud computing, while maintaining total control and ownership of its environment.

However, private clouds also have some disadvantages. First, private cloud technologies, such as increased automation and user self-service, can bring some complexity into an enterprise. These technologies typically require an IT team to rearchitect some of its data center infrastructure, as well as adopt additional management tools. As a result, an organization might have to adjust or even increase its IT staff to successfully implement a private cloud. This is different than public cloud, where most of the underlying complexity is handled by the cloud provider.

Another potential disadvantage of private clouds is cost. A benefit of public cloud is cost mitigation through the use of computing as a "utility" -- customers only pay for the resources they use. When a business owns its private cloud, however, it bears all of the acquisition, deployment, support and maintenance costs involved.

Major private cloud vendors

A private cloud is commonly deployed on premises in much the same way a business would build and operate its own traditional data center. However, an increasing number of vendors offer private cloud services that can bolster or even replace on-premises systems.

Some of the largest players in the private cloud market include Hewlett Packard Enterprise (HPE) with its Helion Cloud Suite software, Helion CloudSystem hardware, Helion Managed Private Cloud and Managed Virtual Private Cloud services. VMware is another major player, not just for enabling virtualization with its vSphere product, but also because of its vRealize Suite cloud management platform and its Cloud Foundation Software-Defined Data Center (SDDC) platform for private clouds.

More major players include Dell EMC, which offers virtual private cloud services, as well as cloud management and cloud security software; Oracle, which offers its Cloud Platform; and IBM, which offers private cloud hardware, along with IBM Cloud Managed Services, cloud security tools and cloud management and orchestration tools.

Red Hat has also emerged as a major vendor for private cloud deployment and management with a range of platforms, including OpenStack and Gluster Storage, as well as Red Hat Cloud Suite for management and development.

This was last updated in November 2017

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great definition above, more detailed info can be found at http://quotecloudcomputing.com/privatecloud.html
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I think of a Private Cloud as a 'Fully-Meshed, Secure Network that results in Anytime, Anywhere Access with Built-in Redundancies to Provide Ultimate Availability'.

In 2012, the new technology landscape is agile and this mobility demands that one should be able to access the entire corporate network from anywhere (Internet Connection Required) even in the event of a power outage or other disaster at the main data center.

Public Clouds provide this access as well as the advantage of not maintainig or owning hardware, but let's face it, there is just some data that companies do not want in the Public Cloud.

Most companies fall into the 'Hybrid Cloud' category. A Hybrid Cloud is a complimentary relationship between Public Cloud assets and Private Cloud assets on a single, fully-meshed network.

By complimenting their Private Cloud a Public Cloud Computing strategy for non-sensitive data, companies can maintain some hardware in multiple locations for highly-sensitive data. These clusters can constantly replicate and provide a self-healing environment for the remote sites providing many of the same advantages of cloud computing, but without the risk of moving sensitive data into the hands of another company.

Just my $.02.
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Would you prefer a private cloud to public or hybrid clouds? Why or why not?
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I prefer a hybrid cloud because of its big data processing functionality. Using it is a valuable approach as we can move workloads. It acknowledges that not all IT resources should exist in public clouds. Agility with a hybrid system is more flexible. By using hybrid cloud fast deployments can be made. Perhaps the most important reason to use a hybrid cloud is to maintain security by keeping sensitive data in-house and rest on public cloud. 
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Personally, I prefer a hybrid cloud for many of the same reasons listed by shery089. But, as with most things, it depends. Each solution has it’s own benefits and challenges, and outshines the others for particular applications. Another factor that drives a lot of preferences is cost.We had Amazon come work with us to perform a TCO assessment for public, private and hybrid solutions. The analysis showed that, again, there were scenarios in which each implementation was more cost effective than the others.
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Most companies still haven't figured out private or public cloud, although public clouds are much better understood because businesses don't have to build one, they just consume it. Most companies need some mix of off-prem and on-prem resources, whether or not they are linking together applications in a "hybrid" model. 
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I am solution provider, and about to provide a solution to bid an enterprise project. Think of scalability and cost-effectiveness private cloud is not suitable to our client who want cloud service while worrying data secure and budget.
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I prefer public cloud as it is relatively cheap and also because my organisation size is not that large. In a public cloud you don't need to worry about server management and its security. 
My host does that for me. A firewall along with backup solution for my files. This is enough for our business.

Private cloud on the other hand is costlier and requires additional work power to handle it.
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Our product use public cloud for our individual client for its availability,  flexibility and maintainability.   Hybrid Cloud to conform some legal requirement in government segment and/or enterprise constraint not allow there data to be stored elsewhere except its own organization.
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Given the pace of innovation in the public cloud, as well as the move to digitize business (which is data-centric and will want to leverage those data-services in the public cloud), it's hard to imagine a successful business being only private cloud in the next 5-10 years. 

We talked with Microsoft a couple weeks ago about their upcoming Azure Stack (cloud on-premises), http://www.thecloudcast.net/2016/03/the-cloudcast-243-understanding-azure.html , and even they said that some public cloud services just don't make sense on-premises. 
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IBM view is hybrid where you choose the right platform for the data and the workload.  Core analytics (think financial reporting) in an on-premises appliance. Private cloud analytics where there are data handling mandates that preclude public cloud or even branch offices.  Then public cloud for data born on the cloud, non-sensitive data and personal preference.  You have to consider management across all of this, also ability to query across many data sources and skills efficiency (learn once, do many).
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Why did you choose a private cloud vs. other cloud computing models?
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A private cloud is a scalable hosting solution that provides agility and redundancy of IT infrastructure for your enterprise. Private cloud hosting solutions are suitable for large enterprises and SMBswho have large compute and storage requirements, need to promptly respond to innovation, or have requirements related to control, security and compliance.
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This is s a pretty limited definition. Too many people want to call their virtualized servers "private cloud", but there should be a focus on:

- highly automated
- self-service access to resources
- on-demand services (IaaS, DBaaS, etc.)
- programmatic access to resources (via APIs) 
- focused on enabling developers to build new or modified applications

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Our Wikibon research is only seeing about 5-10% of what people call "Private Cloud" are actually functioning like a Public Cloud. We plan to release more research on it this month - http://wikibon.com/true-private-cloud-will-begin-shipping-to-the-market-in-2016/
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If you have enough infrastructure and not being utilized, I would recommend to go for a private cloud. Of course, you should as well have the resources to maintain them as well. In case of scaling up required and don't intent to purchase new infrastructure, choose hybrid cloud as the option.
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As per above statement..private cloud incure more cost than traditional data center then why do we need to use private cloud.

Regards,
Priyanka
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One more thing how private cloud is different from data center concept then if we putting infrastructure into premises.
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Yes I preferred private cloud to public cloud because some information most not leave the company premises for prey eyes to see such as workers or customer Identification....also company privacy policy management.
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"buy the base, rent the spike", a phrased coined by a Zynga IT executive still holds true today. If your workload requirements are fairly static, a private cloud will be less expensive than public (why would you rent a car for 3 years?) and public is best for dynamic workloads.  
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