Top 8 Private Cloud Providers: SMBs & Enterprise Solutions

Private cloud infrastructure offers dedicated resources, improved security, and total control over their computing environment. The global private cloud services market reached around $92.56 billion in 2023. It will keep growing as businesses prioritise data sovereignty and performance guarantees.

This guide examines eight top private cloud providers. They include platforms for SMBs and enterprise hyperscalers. It outlines the features, pros, cons and best use cases for each provider. This information helps you choose the best infrastructure for your needs.

#What is a private cloud?

A private cloud is a cloud computing solution designed for one organization. It offers exclusive access to resources like computing, storage, and networking. This is different from public clouds, where many users share resources. A private cloud offers full isolation, control, and customisation to suit each customer's needs.

Core characteristics of private clouds:

• Single-tenant architecture: dedicates all resources to one organization.
• Dedicated infrastructure: physical servers and storage are not shared with others.
• Customizable environment: users control settings, security, and resource distribution.
• Isolation guarantee: keeps data and applications separate from others.

Private clouds are deployed through three primary models:

• On-premises private clouds run in company-owned data centers. Organizations maintain complete control but handle all maintenance and upgrades themselves.
• Hosted private clouds run in a service provider's facility. They use dedicated hardware, which lowers the operational burden and keeps single-tenant isolation.
• Managed private clouds combine hosted infrastructure with full provider management. This means the provider handles monitoring, patching, and optimization.

The architecture consists of several integrated layers. The compute layer provides processing power through dedicated servers. Storage systems deliver block, file, or object storage through dedicated arrays.

Network infrastructure creates isolated segments using VLANs or physical separation. A management layer orchestrates all resources and provides APIs for integration.

#Top 8 private cloud providers

The private cloud market divides into two distinct segments. SMB providers focus on accessibility and straightforward management. Hyperscalers deliver enterprise-grade capabilities with global reach. Each addresses specific organizational needs.

• Cherry Servers (SMB)
• Leaseweb (SMB)
• OVHcloud (SMB)
• phoenixNAP(SMB)
• AWS Outposts (Hyperscaler)
• Azure Stack (Hyperscaler)
• Google Distributed Cloud (Hyperscaler)
• Red Hat OpenShift (Hyperscaler)

#Top private cloud providers: SMBs (small and medium-sized businesses)

Small and medium businesses require private cloud solutions, balancing performance with affordability. These providers deliver enterprise features without complexity. They also offer transparent operations and intuitive interfaces that don't demand dedicated infrastructure teams.

#1. Cherry Servers

Features

• Servers: AMD EPYC processors with up to 128 cores, plus Intel Xeon options
• Network: 10 Gbps connections available, includes 100TB monthly bandwidth
• Setup time: Ready-to-use servers deploy in 15-30 minutes, custom hardware takes 2-72 hours
• Private networks: VLANs connect your servers securely
• Automation: REST API lets you manage infrastructure with code
• Billing: Pay hourly or monthly, accepts cryptocurrency

Pros

• Rapid deployment times for pre-configured servers
• Flexible scaling between virtual and physical infrastructure
• Strong GDPR compliance with European data centers
• Cryptocurrency payment support for Web3 projects
• API-first design enables full automation

Cons

• Custom configurations can take up to 72 hours
• Limited managed services offerings
• Smaller global footprint compared to hyperscalers

Best fit

Growing companies can benefit from the ability to scale between virtual and physical infrastructure without changing providers. EU-based organizations using the platform can meet data residency requirements easily.

Furthermore, the platform suits compliance-sensitive workloads, blockchain infrastructure, and applications requiring predictable performance. Companies transitioning from virtual to dedicated infrastructure will find the hybrid approach particularly valuable.

#2. Leaseweb

Features

• VPS configurations: 4 to 24 vCPUs with 6GB to 120GB RAM
• Storage: NVMe local storage up to 600GB with 25K IOPS
• Network: 10 Gbps uplink with 30TB traffic included
• Deployment: Automated provisioning in 10 minutes
• Security: Standard DDoS protection and free firewall filtering
• Backup: Acronis backup solution with multiple storage options

Pros

• Fully redundant network infrastructure across data centers
• Latest generation processors deliver consistent performance
• User-friendly portal and API for management
• Snapshots included for data recovery
• SSAE 18-audited infrastructure for compliance

Cons

• Limited enterprise features compared to hyperscalers
• Fewer global locations than competitors
• Control panels cost extra

Best fit

E-commerce platforms can benefit from the provider’s high IOPS and consistent performance. Development teams can also use it for test environments that mirror production. Moreover, small businesses requiring a European presence would appreciate the strong network connectivity to major internet exchanges.

#3. OVHcloud

Features

• Infrastructure base: VMware vSphere and OpenStack technologies
• Global presence: 44 data centers worldwide with a strong European focus
• Storage performance: NVMe storage 6x faster than standard SSDs
• Backup included: Daily automatic backups standard
• SLA guarantee: 99.9% uptime across all services

Pros

• Complete infrastructure ownership ensures independence
• GDPR compliance by default under EU laws
• Competitive pricing through vertical integration
• ISO 27001 and SOC 2 Type II certifications

Cons

• Complex interface for beginners
• Customer support can be slow
• Limited presence outside Europe

Best fit

European businesses that require strict data residency can choose OVHcloud for regulatory compliance. Furthermore, organizations familiar with VMware can find easy migration paths with the provider.

#4. phoenixNAP

Features

• Bare Metal Cloud: API-driven servers deployed in minutes
• Connectivity: Direct links to AWS and Google Cloud
• Network: 15+ PoPs worldwide with 9+ Tbps capacity
• Megaport integration: On-demand Layer 3 private connectivity
• Hardware options: Customizable dedicated servers and HaaS

Pros

• True hybrid cloud capabilities across multiple environments
• Next-gen colocation in Phoenix data center
• Seamless hyperscaler connectivity
• Flexible hardware leasing options
• Compliance-ready platform for regulated industries

Cons

• Primary data center location in Phoenix may not suit all regions
• More complex than pure cloud solutions
• Requires understanding of hybrid architectures

Best fit

• Enterprises that need to combine colocation with cloud services would find phoenixNAP ideal.
• Companies with unpredictable workloads that would use cloud bursting capabilities effectively.
• Organizations requiring low-latency connections to hyperscalers would benefit from direct links.
• Businesses in regulated industries would appreciate the compliance-ready infrastructure.
• Edge computing and IoT deployments can leverage the provider’s distributed network architecture.

#Top private cloud providers: hyperscalers

Enterprise organizations need private cloud platforms to integrate with existing infrastructure while providing global scale.

#5. Amazon Web Services (AWS) Outposts

Features

• Hardware options: 42U racks with AWS-managed infrastructure
• Service parity: Native AWS services running on-premises
• Storage tiers: EBS volumes with various NVMe SSD configurations based on rack selection
• API consistency: Identical APIs for cloud and on-premises
• Compliance coverage: FedRAMP, HIPAA, PCI DSS certifications

Pros

• Fully managed hardware lifecycle by AWS
• Seamless integration with AWS cloud services
• Extensive compliance certifications

Cons

• Requires 3-year commitment
• High initial investment
• Complex pricing structure
• Not compatible with non-AWS services

Best fit

• Manufacturing facilities that process IoT data locally while using cloud analytics.
• Healthcare organizations that keep patient data on-premises but leverage AWS AI services.
• Financial institutions that want to achieve microsecond latency for trading systems.
• Retail chains standardize store infrastructure.

#6. Microsoft Azure Stack

Features

• Deployment models: Hub (integrated systems), HCI (hyperconverged), Edge (ruggedized)
• Hardware partners: Dell, HPE, Lenovo, certified systems
• Disconnected operation: Full functionality without internet
• Azure consistency: ARM templates and marketplace syndication
• System Center: Integration with existing Microsoft tools
• Azure Arc: Hybrid and multi-cloud management

Pros

• Complete API compatibility with the Azure public cloud
• Operates fully disconnected for air-gapped environments
• Leverages existing Microsoft infrastructure investments
• Global Microsoft support infrastructure
• Consumption-based pricing model

Cons

• Limited hardware vendor options
• Requires significant Microsoft expertise
• Complex licensing structure

Best fit

• Microsoft-centric organizations naturally choose Azure Stack. The platform extends familiar services and tools.
• Government agencies operating in classified environments.
• Retailers running point-of-sale systems locally.
• Healthcare providers maintaining data residency while using Azure AI services.

#7. Google Distributed Cloud

Key features

• Platform architecture: Fully managed Kubernetes-based infrastructure for on-premises and edge
• Deployment options: Connected mode or air-gapped for complete isolation
• Hardware flexibility: Runs on certified hardware from Dell, HPE, and others
• Geographic availability: Available in 25 countries globally
• Management: Uniform developer environment from cloud to edge

Pros

• True air-gapped option for complete isolation from the internet
• Scales from a single location to thousands of sites
• Strong ecosystem with 50+ validated partners
• Kubernetes-native, ensuring workload portability

Cons

• Complex pricing structure varies by configuration
• Requires Kubernetes expertise for optimal use
• Limited to containerized and VM workloads
• Air-gapped pricing requires custom quotes

Best fit

• Regulated industries requiring complete data isolation can use Google Distributed Cloud for its air-gapped capabilities.
• Retailers can deploy modern store experiences across thousands of locations using the platform's edge computing features.
• Manufacturing companies can enable factory floor modernization with on-premises AI for visual inspection and process optimization.

#8. Red Hat OpenShift

Features

• Container platform: Enterprise Kubernetes with developer tools
• Deployment flexibility: Self-managed or managed cloud services
• Cloud partners: Available on AWS, Azure, Google Cloud, IBM Cloud
• Developer suite: CI/CD pipelines, GitOps, serverless capabilities
• Observability: Built-in monitoring and troubleshooting tools
• Support: 24/7 enterprise support with dedicated assistance

Pros

• Consistent experience across any infrastructure
• Strong ecosystem of certified operators
• Enterprise-grade security and compliance features
• Proven platform trusted by Fortune 500 companies
• Integrates with existing enterprise tools

Cons

• Requires Kubernetes and container expertise
• Higher cost than open-source alternatives
• Complex for small deployments

Best fit

• Organizations with hybrid cloud strategies would benefit from consistent operations everywhere.
• Financial services companies would appreciate the security features and compliance certifications.
• Development teams would value the integrated CI/CD pipelines and developer tools.

#How to choose the right private cloud provider

Consider these factors to make sure your chosen platform meets current and future needs:

#Assess workload requirements

Identify the resource needs for each application. This includes CPU cores, memory, storage, and network bandwidth. Consider performance needs like latency limits and IOPS targets. Moreover, do not forget any specific hardware needs, like GPUs or high-memory configurations.

#Evaluate compliance needs

Look into the regulations that affect your infrastructure choices. Financial services must follow PCI DSS. Healthcare organizations need to comply with HIPAA. Additionally, if you are in Europe, remember that GDPR is compulsory. Government contractors should also secure FedRAMP certification.

#Consider technical expertise

Assess your team's capabilities honestly. SMB providers offer managed services for teams without dedicated infrastructure engineers. Hyperscalers provide extensive features but require specialized knowledge. Factor training costs and potential hiring needs into your decision.

#Calculate total costs

Compare expenses beyond subscription fees:

• Migration costs for moving workloads
• Bandwidth overage charges
• Backup storage fees
• Support subscription tiers
• Professional services for implementation
• Three-year total cost accounting for growth

#Plan for growth

Verify providers support anticipated scaling without platform migration.

• Check resource limits for instances, storage, and connections.
• Understand hardware refresh cycles.
• Ensure billing models remain cost-effective at scale.
• Evaluate upgrade paths for capacity expansion.

#Conclusion

Private cloud providers are clearly divided between SMB platforms and enterprise hyperscalers. Small businesses should prioritize operational simplicity and responsive support. Enterprises need extensive capabilities and compliance certifications.

Test any provider through proof-of-concept deployments before committing long-term. Your private cloud becomes critical infrastructure, making a thorough evaluation essential for success.