Time to read: 9 minutes, 36 seconds | Published: March 5, 2025

Virtual private cloud (VPC)
What is virtual private cloud (VPC)?

A Virtual private cloud (VPC) is a secure, isolated private cloud hosted within a public cloud that allows users to run their applications and store data in a logically isolated section of the public cloud while maintaining control over their virtual networking environment.

Two cloud engineers discussing the features of virtual private cloud.
  • How virtual private cloud is different from private cloud?
  • How does a virtual private cloud work?
  • What are the features of a virtual private cloud?
  • What are the benefits of using a virtual private cloud?
  • How does HPE help with virtual private cloud?
How virtual private cloud is different from private cloud?

How virtual private cloud is different from private cloud?

A Virtual Private Cloud (VPC) is different from a private cloud in several keyways:

  • Hosting environment: A VPC is hosted within the infrastructure of a public cloud, offering isolated networking within a broader public cloud ecosystem. In contrast, a private cloud is hosted on-premises or within a dedicated environment provided by a third-party, exclusively used by a single organization, ensuring complete physical isolation.
  • Scalability: VPCs offer on-demand scalability by leveraging the extensive resources of the public cloud provider, allowing users to scale resources up or down as needed without physical hardware constraints. Private clouds are limited by the available physical resources in their dedicated infrastructure, requiring significant investments in new hardware to expand capacity.
  • Cost: VPCs operate on a pay-per-use pricing model, which is cost-effective for organizations with variable workloads, as users pay only for the resources they consume. Private clouds involve substantial upfront capital expenditure for infrastructure setup and ongoing operational costs, which can be higher, especially for smaller or fluctuating workloads.
  • Management: In a VPC, the public cloud provider manages the underlying infrastructure, while users configure and manage their isolated environment, reducing administrative burden. Private clouds require the organization or a third-party to manage the entire infrastructure, providing complete control but demanding more in-house expertise and resources.
  • Security and compliance: VPCs offer robust security features, including network isolation and encryption, within a shared public cloud environment, which may not meet stringent regulatory requirements. Private clouds offer the highest level of security and control with dedicated infrastructure, essential for organizations with strict regulatory and compliance needs. Additionally, VPCs can be configured to meet compliance standards like HIPAA, GDPR, and PCI-DSS.
  • Resource sharing: VPC resources are logically isolated but physically shared with other tenants in the public cloud, potentially leading to resource contention. Private cloud resources are physically isolated and dedicated to a single organization, eliminating concerns about resource sharing.

These distinctions help organizations determine the best cloud model based on scalability, cost, management, security, and resource sharing needs.

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