In an effort to increase data control while reaping the flexibility of cloud computing, a number of businesses are adopting private clouds.

While private cloud computing allows users to internalize the benefits of public clouds, it also limits the technology's of benefits. According to David Linthicum of InfoWorld, the main point of the cloud is to share resources publicly, making services less expensive and more flexible for businesses.

Moving to a private cloud should, Linthicum states, only occur in companies with specific restrictions.

Compliance issues are the most demanding reason to maintain a private cloud. In some industries, government for example, data must be stored in a particular location. Sometimes that means information needs to stay within a precinct, in other instances it needs to stay strictly within a company.

Performance and application needs also affect private cloud adoption. Data transfer speeds and network latency issues can occur when dealing with public cloud providers. If a business needs to run consistently at peak levels, a public cloud can fall short. Legacy software can also make using a public cloud difficult, as only newer applications are compatible with the cloud in many circumstances.

In recent months, cloud developers have released cloud-in-a-box solutions at an increasing rate. These private cloud computing packages make it possible for companies to efficiently set up the hardware and other systems necessary to develop their own infrastructure.