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App Development
5 minutes read

What Is Virtual Private Cloud (VPC) Computing? 

By Jose Gomez
By Jose Gomez
App Development
5 minutes read

Cloud computing has become essential to modern business operations, and as a result, many organizations now seek private cloud infrastructure that doesn’t have to share public cloud resources. 

However, the costs of a dedicated private cloud infrastructure are often more than an organization can or wants to spend on cloud services. 

Luckily, virtual private cloud computing can give organizations the privacy and dedicated resources of private clouds with prices more aligned with public cloud services. 

Virtual private clouds are an excellent option for organizations that require dedicated cloud infrastructure resources but want to work with a public cloud provider who can offer lower pricing and an array of additional cloud services and features. 

This post will explain what a virtual private cloud (VPC) is as well as the advantages and disadvantages of virtual private clouds. 

Virtual Private Cloud (VPC) Defined 

A virtual private cloud is an isolated, secure private cloud that exists within a public cloud. To fully understand a virtual private cloud, you need to understand how a public cloud works. 

A public cloud hosts multiple customers on the same infrastructure. However, data is not shared between customers on a public cloud. Imagine the public cloud as a restaurant, every business is seated at its own table, but they share the resources of the kitchen and the wait staff with all other tables in the restaurant. 

A virtual private cloud is like having the restaurant block off a section of the restaurant for your business and ensure that a certain amount of resources are solely available for your business. 

Your virtual private cloud (VPC) is still in the same restaurant. However, now it has its own dedicated section, server, and kitchen staff that it doesn’t share with the other tables in the restaurant. 

VPC environments combine the scalability and convenience of public cloud computing with the security and isolation of private cloud computing. In many ways, a virtual private cloud (VPC) offers organizations the best of both worlds in cloud computing. 

The Benefits of a VPC Environment 

There are several advantages of virtual private clouds that your business should understand, including: 

  • Cost-effective and scalable 
  • Logical isolation
  • Dedicated resources

Cost-Effective and Scalable

The most significant advantages of cloud computing are the cost and scale. The cloud enables organizations to pay for the computing resources they use and scale computing resources to meet demand in real time. 

Virtual server instances exist with popular public clouds like IBM cloud, Microsoft Azure, or AWS. For example, with an Amazon VPC, your business would have all the advantages of AWS services and tools plus a private environment. 

Well-known providers can offer a level of performance and security that will be difficult to match on your own with a true private cloud at a cost that cannot be matched. 

Logical Isolation 

VPCs enable organizations to define and control virtual networks logically isolated from all other users on the public cloud network. As a result, organizations can build a private and secure place on the public cloud. 

This control allows organizations to decide which IP addresses or applications can access specific VPC resources. Not only does this improve data isolation, but it also ensures that your organization controls how its VPC resources are used. 

Dedicated Resources 

If network traffic spikes across the public cloud, your organization’s resources are always dedicated to its needs. Beyond greater security, the biggest benefit of private networks is full control over resources. 

In a VPC environment, all computing resources are dedicated solely to your organization. While your environment exists in a shared infrastructure, the resources your organization pays for are solely for its use. 

The Disadvantages of a VPC Environment 

While the benefits of VPCs are attractive, it is not always a perfect solution. There are disadvantages to virtual private clouds, such as:

  • More expensive than public cloud computing
  • It might not be secure enough 

More Expensive than Public Cloud Computing 

Virtual private clouds are more expensive than public cloud alternatives. This is not wholly unexpected, as VPCs offer the same convenience and flexibility as public clouds without the drawback of sharing resources.

While VPCs are more expensive than public options, they are typically cheaper than building a private cloud and hosting it on-premises. However, the extra costs might not be worth it for your business. 

If your business doesn’t require dedicated resources, a VPC likely won’t be worth it, especially considering how secure popular public cloud options like IBM cloud are. Having a VPC is appealing, but it is not always the right choice for every business.

Speak with technical analysts and experts to ensure that a VPC is the best choice for your business before investing the additional financial resources it will take to have one. 

It Might Not Be Secure Enough 

VPCs, while isolated and more secure than public cloud environments, might not be secure enough for certain industries

For example, financial services and healthcare organizations that are subject to strict security compliance regulations will likely be restricted in the types of apps or data that they can place in VPCs.

As a result, a VPC might not be the best choice for organizations that have strict data compliance regulations. 

Final Thoughts 

VPCs are a great choice for some businesses. However, while there are a ton of benefits and advantages to this cloud approach, this is not the right option for every business. If you want to learn more about virtual private clouds and the way they can impact your business, reach out to an experienced technical partner like Koombea.

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