What Is A Virtual Private Cloud? Can Managed Solutions Help?

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Michael Gargiulo - CEO, VPN.com

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When the data storage needs of your business expand, you’ll have to find a suitable solution. It’s possible to purchase and maintain the physical server architecture on your own. However, this process is expensive, logistically complex, and requires in-house specialized knowledge. Many business owners will find that an outsourced solution is better for them. One of the finest options available is a managed virtual private cloud (VPC).

Graphic representing a virtual private cloud

Private Cloud vs Public Cloud

It’s easy to understand how virtual private cloud storage works with additional context on the difference between private cloud vs public cloud. On a basic level, cloud storage consists of disparate physical architecture pooling its resources into one powerful, virtual space. Websites and businesses can either store their data on a private or public server, and this dichotomy extends to cloud servers.

Public Cloud Hosting

A public cloud provides relatively unregulated access for multiple websites. This number could be two or many hundreds, depending on the size of the websites and the power of the cloud architecture. While the cost is low since many websites share the operating costs, quality of service is highly variable due to the lack of dedicated architecture.

Private Cloud Hosting

When a cloud server exclusively serves a single organization or website, it’s a private cloud. Thanks to the consistent, dedicated architecture, this should generally entail higher quality service than a public cloud service. While cloud networks are innately scalable compared to traditional servers, private architecture comes at a higher cost and is likely to include a substantial amount of unused capacity. Choosing a virtual cloud allows businesses to take a middle ground between public and private servers.

What Is A Virtual Private Cloud?

The text in the image says, what is a Virtual Private Cloud and the background of the image shows a cloud network

A virtual private cloud is essentially a private cloud within a public cloud. It segments off resources within a public cloud for the benefit of a single user, allowing them to enjoy dedicated resources at a lower scale than a dedicated server. As a result, you enjoy consistent, reliable service without requiring the same large-scale commitment of resources involved with using a private network.

How Does A Virtual Private Cloud Work?

A private virtual cloud relies on three technologies to section off resources for a single user. Subnets prevent other users from accessing the VPC, and a VPN keeps the activity within that private network confidential. Meanwhile, a VLAN connects the relevant resources for use by a single entity.


A virtual local area network, or VLAN for short, is a network of assets that utilize a virtual connection without the internet. In the case of a VPC, the VLAN sections off resources within a network by partitioning a network so that only the relevant user can access it.


While VLAN sections off the resources that power a network, a virtual private network (VPN) hides the activity within that network. Without a VPN, the information within a VPC would remain easily visible to anyone with access to the public cloud. However, the virtual private network makes use of encryption to mask web traffic. While this data still passes through the shared internet infrastructure of the public cloud, it’s secure and invisible to other users.


A subnet reserves private IP addresses within a broader cloud network. Users cannot access these private IP addresses from the public internet, which is why subnets can prevent other users from accessing your VPC. As a result, subnets achieve the goal of segmenting off part of the network for a single user.

Advantages Of A Virtual Private Cloud

The text in the image says, what are the advantages of Virtual Private Cloud.

While a virtual cloud is the halfway point when it comes to a private cloud vs a public cloud, it has few of the disadvantages of either. In many cases, it combines the relative advantages of both models while having other additional advantages.

Reliable Cloud Services

Any public network is subject to inconsistent service as your website and others experience greater traffic. The fundamental advantage of the private virtual cloud is that you, the customer, can always procure the resources you need.

Save On Costs

There’s no one cost for reserving a private cloud server, as different servers have wildly different capacities. However, it’s unlikely that you’ll find a private server that aligns precisely with your storage and hosting needs. A VPC can section off a fairly precise amount of computing resources, which translates to excellent cost efficiency.

Even if a business did acquire a private cloud server that was perfectly suited to its needs, there would be an eventual need to expand the server so that it could meet new requirements. This is a much more expensive, complicated process than the easy scalability of a VPC.

Easy Scalability

Since a virtual private cloud exists within a larger cloud network, a VPC offers wonderful scalability. When your needs expand beyond your current solution, you’ll simply requisition greater resources from the network owner.

Why We Recommend Managed VPC Solutions

By default, a VPC is unmanaged. This means that you’ll enjoy core cloud services, but that the owner only provides the architecture itself. Management, maintenance, routine upgrading, and related tasks fall to you, the customer. While this is the cheaper option, it’s not advisable for a small business owner who’s new to the world of IT. On the other hand, a managed solution provider will handle the technical aspects of server maintenance for you. Hiring managed virtual private cloud services is the best option for a small business that lacks in-house IT expertise.

Learn More About Virtual Private Clouds

When you’re looking to learn more about IT and the digital requirements of running a modern business, VPN.com is the best choice. If you explore our blog, you’ll find that we’ve written extensively on subdisciplines across the IT field. When you need more thorough, individualized assistance, get in touch with us and schedule a consultation. Our team of experts can help you chart a complete digital strategy, from finding the perfect domain name to selecting the ideal virtual private cloud provider.