Virtualization vs. Private Cloud: What’s the Difference?

Private Cloud
For many people outside of the realm of IT, the terminology can often be confusing. If you’re busy running the day-to-day particulars of your business, you simply may not have time to learn everything there is to know about all of the technological aspects of keeping your business up and running. As a result, you may waste time — and money — researching and implementing solutions that you don’t really need, or that don’t fully meet your needs.

One area that often trips people up is the difference between virtualization and the private cloud. While the two concepts share some features, they are quite different. Failing to fully understand the differences could lead you to make the wrong choice for your business — or make a choice based on the wrong priorities.

Virtualization vs. Private Clouds in a Nutshell
The term “cloud computing” is thrown around a lot these days, and is often assumed to be any type of computing that takes place apart from the actual machine that one is working on. For example, anyone who uses a storage service like OneDrive or DropBox understands that the data is stored in a remote server — the cloud — that allows access from anywhere. Often, cloud computing is used synonymously with virtualization.

However, the two concepts are quite different. In the simplest terms, virtualization is software that makes it possible for hardware to run multiple applications and operating systems on the same server. It makes it possible for servers, individual computers, mobile device, and other systems to function without being physically connected to a specific network or server. For example, a business may purchase or develop an application to be accessed by multiple employees. By running the application on a virtualized machine, employees can access the application from anywhere, without the application necessarily having to be installed on their physical device.

Consider this: A company uses virtualization to create virtual desktops for each employee to access on the go. When the employee logs in, he sees his own virtual desktop, and his cubicle mate sees her individual desktop. These desktops are stored on the virtual machine. In a cloud environment, though, the employee logs in to a server that stores desktops as a service. It’s not an individualized service; instead, when you log in, you see your desktop as you customized it, based on your profile. The desktop itself isn’t changed.

Further compounding the confusion is that virtualization is a foundation of cloud computing. It’s what gives the cloud the ability to function the way that it is supposed to. However, while virtualization is generally private, in the sense that only one organization or group of people uses the virtualized machine, a virtual server is not the same as a private cloud. A private cloud is one used by just one organization, as opposed to a public cloud that is shared by many entities. For example, some popular Web-hosting services are actually public clouds, in that many companies store their data on them. Access is restricted, of course, but a single server or group of servers can contain data from hundreds or even thousands of users.

A private cloud, on the other hand, is dedicated to one user, whether an individual or organization. It offers some advantages in terms of security, especially for those organizations bound by certain data protection compliance rules, and the ability to be fully customized from the ground up based on the organization’s needs. Virtualization is put to use in order to create the cloud, but the virtualized machines will not in and of themselves comprise the private cloud.

Do You Need a Private Cloud?
Understanding the difference between virtualization and the private cloud is just the first step toward making the right decision for your company. Not every situation requires a private cloud, even though they offer a number of advantages.

Some of the questions to consider include:

  • How much time do I have? A private cloud can often be set up more quickly than traditional IT infrastructures.
  • What are my security needs? In some cases, data protection requires may dictate that you build a private cloud.
  • How much customization do I need?
  • What are my performance requirements?

It’s important to realize that private clouds do not have to be hosted onsite, and can be located in a shared data center. Also, while a private cloud may have higher upfront costs, in many cases, it is more cost-effective in the end.

Business owners who are weighing their options should work with experienced IT professionals to examine all of the possibilities and make the best choice — but the first step is understanding the terminology.