What is Virtual Private Cloud (VPC)?

Virtual Private Cloud is virtual as it is built on the top of public cloud. It is private as there is limited number of users access to the actual physical hardware behind. It is a cost saving option than private cloud. We are trying to explain what is virtual private cloud (VPC) in simple terms. Those who are not technical persons, they can read what is cloud computing in simple terms if concept of cloud computing is not yet clear.

What is Virtual Private Cloud (VPC)?

Before going to virtual cloud, we need to clarify some matters. Private cloud is technically blurred. Easiest  model of private cloud is allocating the hardware resources to an organisation, providing all the services to run some cloud computing software, ports by default to the infrastructure is not open to public internet and the user organization needs to use some software which will use virtual private network or leased line to connect to the infrastructure. Private cloud is far cheaper than renting a floor or few racks of a datacenter or colocation. IT hardware usually retired after 5 years.

For the colocation or rented datacenter, one needs to own the hardwares, pay electricity & internet connection bill, carry the cost of manpower. That is, colocation or rented datacenter will have higher CapEx (capital expenditure) and also have OpEx (operating expenses). In public cloud implementation one have nil CapEx (capital expenditure) and only spending is OpEx (operating expenses). Private clouds are complicated than public cloud to setup and more expensive. But less expensive than colocation or rented datacenter. Virtual Private Cloud is more cheaper than Private Cloud and sometimes have very low CapEx (capital expenditure), OpEx (operating expenses) by some vendors is comparable to public cloud and setup is more easy.

Virtual Private Cloud is most commonly used by some of the IaaS providers, like once we used HP Cloud (we have lot of guides). Here the provider is providing the actual public cloud infrastructure and Virtual Private Cloud service over this infrastructure as a software defined layer. Routers likely to be virtual. Virtual private cloud offer some benefits over public cloud. The later can be reached on the Internet by anyone, but a virtual private cloud will stay behind the vendor’s firewall and is reachable via the organization’s intranet, VPN to add more security.

Virtual Private Cloud (VPC) designed to perform like any other private cloud for day to day works. Virtual private cloud will have more bandwidth efficiency than public cloud. We actually pay more for bandwidth for router, switch, and firewall. Plus the resources are on-demand. Security of course higher than public cloud.