Five Business Use Cases for Private Cloud

Today, nearly every facet of business depends on cloud computing technology, which provides on-demand access to computing resources, like data storage and processing power. While some may claim that cloud migration is slowing down, global spending on cloud infrastructure services is on the rise, driven particularly by the AI revolution. In fact, according to Canalys, spending was up 18% in 2023 and is expected to increase by 20% in 2024.

What’s more, the adoption of private cloud storage solutions is seeing a significant uptick. According to a Markets and Markets report, the global private cloud market will grow from $124.8 billion in 2024 to $190.9 billion by 2029. With private cloud solutions expected to account for 70% of all cloud data in 2024, it is clear organizations are recognizing the importance of enhanced security, control and scalability in their cloud computing strategies.
Now, let’s delve deeper into the characteristics that distinguish a private cloud. So, what exactly is a private cloud? A private cloud refers to a form of cloud computing in which IT services are provided exclusively to a single organization or a specific group of users through a dedicated network. These IT services encompass data storage, backup, and security. Private clouds have distinct characteristics that set them apart from other virtual services. They are privately owned, restricted to a specific number of users, and protected by a firewall for enhanced security. Companies that opt for private cloud solutions are looking for enhanced data security and control, without the need to modify their storage capacity or rely on third-party hosting services that may impose restrictions on the types of data that can be stored.

In this blog, we will describe five different use cases for the private cloud environment. Below are just a few examples of how it is being used in the real world today by various verticals.

Industry: Education

Challenge: Cost. It’s no secret that education (in particular K-12 education) has faced massive funding deficits in recent years, resulting in increased classroom sizes, textbooks held together by rubber bands and a lack of access to school nurses, to name a few. On top of this, navigating the steep learning curve of virtual learning has provided a recipe for disaster … or the chance to seize the opportunity to move education into the digital age.

Solution: The future of education is arguably in the cloud. From textbooks to online class forums to resources for teachers, it all has to be online in today’s digital world. At first glance, private cloud may not seem like the most cost-effective choice for IT professionals in education. But the total cost must be looked at with a long-term cost savings lens. Investing now in more innovative and flexible learning looks like this:

• Lower hardware and software costs
• Private and secure virtual classrooms
• Learning labs for education professionals
• Improved accessibility for students and faculty
• Collaborative learning
• Industry: Finance

Challenge: Security and regulatory compliance. Both are high priorities for all financial institutions, whether they are in the cloud or not. The reasons are obvious. Security of sensitive data is non-negotiable when organizations are looking toward digital transformation. And compliance or governance issues can make it so organizations must use a private cloud.

Solution: Migrating data and digital processes to the private cloud allow financial organizations to maintain complete control over them while enjoying the benefits of cloud-based computing such as:

• Cost-effectiveness
• Compliance automation
• Scaling and mobility
• Integration of machine learning and IoT

Industry: Healthcare

Challenge: Privacy and HIPAA Compliance. The HIPAA Privacy Rule, which protects patients’ medical records and other health information, requires healthcare organizations to provide safety, exclusiveness and robust network connectivity to move large files as well as a private connection in order to remain HIPAA compliant.

Solution: Those in healthcare have a vast amount of sensitive data to manage and are many times skeptical about that data being stored in a shared cloud system. Private cloud solves this problem, while also providing the advantages of a cloud environment, such as:

• Scalability
• Customization
• Simplified management
• Backup and data recovery mechanisms

Industry: Hospitality

Challenge: Transformation of guest experience. When was the last time you checked in and out of a hotel? Odds are, your experience was vastly different than just a few short years ago. The pandemic, like in many industries, sped up digital transformation efforts within the sector. But this shift requires complex networks in order to operate. Traditionally, a hard-wired internal network on-premise is what would be required, which is both expensive and difficult to manage and scale.

Solution: The private cloud offers flexibility and the added benefit of lower operational costs to push forward these advances in technology. It is unmatched by other solutions. Private cloud enables an organization to manage their own infrastructure as needed, supporting personalized guest services in a centralized manner.

Industry: Government

Challenge: Privacy, control and cost. The digitization of government data and processes demands all three of these. The challenges are great whether we are talking about agency collaboration, tightly constrained budgets or data privacy.

Solution: While the adoption of private cloud in the public sector has lagged behind the private sector, it is quickly catching up due to constituency demands. This has driven faster IT implementation all while requiring transparency throughout. The private cloud, in its essence, solves for privacy, control and cost, making it the go-to solution for government agencies.

If you are sensing a pattern here, you’re right! Private cloud offers the security, privacy, flexibility, regulatory compliance and cost-effectiveness for those organizations that require it. Would you like to learn more about how Segra can help? Contact us today.

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