May 19, 2022

The private cloud sector is just taking off

A private cloud can only be accessed by verified users and is set up by companies that demand extremely high levels of data protection. These corporate cloud environments aren't accessible to the public, but they can be set up to use public internet, internal private networks, or a combination of the two.

Similar to public clouds, private clouds are scalable, elastic and customisable. These 'single-tenant' environments are dedicated to a single institution, which means that only authorised employees have access to all of the cloud resources.

A private cloud can be hosted on rented infrastructure, such as third-party data centres but they are typically hosted on the company's on-premise servers. This results in the optimisation of the on-site infrastructure's resources. Financial records, medical files, intellectual property, sensitive government documents and personally identifiable information (PII) are all kept safe thanks to enterprise firewalls and access control.

Private clouds have grown in popularity among financial, healthcare and government institutions. They allow these enterprises to comply with regulatory requirements while also reaping the benefits of a virtual data management approach. Private cloud use has soared in recent years, with statistics indicating that the industry is still in its early stages.

The private cloud sector's market status

From 2017 to 2023, the global private cloud services market is expected to increase at a compound annual growth rate (CAGR) of 21.1%. In the near future, the Asian-Pacific market is predicted to have the highest CAGR. The Middle East and Africa are also predicted to develop, albeit at a slower pace than the rest of the world during the forecasted period.

Public cloud infrastructure services are witnessing the highest levels of growth, with Amazon, Microsoft and Google taking up their places as segment leaders. From 2019 to 2025, the global private cloud server market is estimated to grow at a CAGR of 29.6%. This shows that the private cloud sector is not only thriving, but also on the rise.

Key drivers for growth in the private cloud sector

Security and compliance issues are the primary driving factors of private cloud growth. In recent years, having a mobile workforce has become a business imperative. Dynamic computing needs have resulted in many enterprises taking to the cloud to become more flexible and always-on. This increases the risk of cybercrime, which can range from isolated cases of malware downloads from email attachments to large-scale distributed denial of service (DDoS) attacks that completely destabilise business networks.

Not only are home offices complicating company security, but the bring your own device (BYOD) trend has also played a role. Employees who connect their personal devices to corporate networks risk exposing the networks to cyberthreats. To counteract this, more businesses are establishing private networks with user identification and access restriction for specific devices. By putting these networks on the cloud, businesses are able to reap the benefits of the cloud while maintaining complete control and visibility over their corporate network.

A private cloud provides new opportunities

Businesses can benefit from both public and private cloud architectures when used in conjunction. When a private cloud's capacity is reached, excess demand can be sent to the public cloud without affecting services or operations. Cloud bursting on public clouds allows businesses to handle overflow traffic in a seamless manner.

Since public clouds are often built on flexible payment models, businesses only pay for what they use. Demand fluctuations can be easily managed with additional resources on hand. This hybrid model is frequently employed to free up local resources on private clouds while utilising the processing capacity of public clouds for critical operations.

The key features of this public-private cloud approach are the ability to free up space and scale services as demand grows. Business leaders are recognising the drawbacks of operating in silos and the cloud can help them adopt a more holistic approach. Virtual machines in a cloud-based architecture provide information sharing, data storage and effective workload management.

Companies no longer need to invest in costly physical hardware or IT systems that quickly become obsolete. The cloud provides enormous potential for innovation through collaboration, efficiency through automation and market response through data-driven analytics by freeing up resources.

Getting the most out of a private cloud

In-house IT teams must take responsibility for their private clouds, which is a major challenge for businesses. The management and upkeep of a private cloud can be costly, especially when private networks are incompatible with public cloud services. Compatibility is best achieved with cloud-native solutions, making moving workloads or using a hybrid cloud much easier.

Many countries in Africa, Latin America and the Middle East have yet to establish technologically advanced hubs with robust IT infrastructure and digital content, which will stifle growth in the private cloud services market in the future.

Businesses that take a short-sighted approach to cloud migration are likely to get limited returns on their investment. A more progressive approach to cloud migration is when enterprises consider how to make their cloud strategy profitable in the long-run. This involves ensuring that their private clouds interface seamlessly with public cloud services.

Businesses should consider public clouds, such as Microsoft Azure, as a starting point for their cloud strategy to solve these problems. Microsoft Azure extensions, such as Azure Stack, are available through SEACOM Business's cloud services and can be used to build a private cloud. This solution ensures that an enterprise's private cloud is compatible with public cloud architecture, making management and maintenance easier. Developers can use Microsoft-managed servers to build and deploy apps, ensuring the greatest levels of integration.

Data resilience is inherent in Microsoft Azure's design. It is essential for large enterprises to protect their data with next-generation firewalls and advanced encryption. To ensure the long-term viability of private clouds, businesses should consider starting with a business-grade cloud provider. SEACOM Business is a leading provider of cloud services and is can assist local businesses in becoming more globally competitive. For more information or to get a quote for our cloud solutions, email us at or leave us a message.

SEACOM owns Africa’s largest network of information and communications technology (ICT) infrastructure, including fibre optic networks and subsea cables. We offer a wide range of industry-leading scalable ICT solutions for large companies that operate throughout the region.

SEACOM is privately owned - making it adaptable to the needs of the client. We are the preferred ICT and internet connectivity supplier for African enterprises. We can guarantee fast, reliable and secure internet and networking services at affordable prices.

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