Private Cloud Security: Core Principles & Risks

Wiz Experts Team
Key takeaways about private cloud security
  • Private cloud security focuses on protecting data and applications within a dedicated, single-tenant environment, offering greater control and isolation than public clouds.

  • While providing enhanced security, private clouds typically involve higher costs, greater management responsibilities, and less inherent scalability compared to public cloud models.

  • Core security practices for private clouds include strict identity and access management (IAM), end-to-end data encryption, physical security measures for on-premises hardware, and continuous monitoring.

  • Organizations with stringent compliance needs, predictable workloads, and available in-house technical expertise are the best candidates for a private cloud architecture.

  • Effective private cloud security relies on a unified platform that consolidates tools like CSPM and CWPP to provide comprehensive visibility and risk management.

What is private cloud security? 

Private cloud security encompasses specialized tools, techniques, and practices designed to protect dedicated cloud environments that serve a single organization. Unlike public clouds where resources are shared among multiple users, private cloud security focuses on securing isolated infrastructure and applications.

Key characteristics of private cloud security:

  • Single-tenant architecture: All resources are dedicated to one organization, eliminating shared infrastructure risks

  • Complete isolation: No multi-tenancy means reduced attack surface compared to public clouds

  • Flexible deployment: Can be hosted on-premises or at third-party facilities while maintaining dedicated access

This dedicated approach provides enhanced control and security compared to shared cloud environments.

A closer look at private clouds

A dedicated private cloud environment, whether on-premises or hosted by a third party, has different security needs than public cloud environments. Public cloud services are typically commissioned from vendors like AWS, Google Cloud, and Azure. These services are accessed by multiple users or organizations, which means that public cloud security approaches need to address cross-tenant vulnerabilities and risks. Hybrid clouds, on the other hand, are a combination of both models and offer enterprises more operational and security-related flexibility.

Private clouds have many unique characteristics. These include exclusivity, high degrees of customization, high performance, effective disaster recovery and business continuity, low latency, and a multitude of hosting options, including on-premises and third-party providers.

Robust security and compliance are arguably the most valuable features of private clouds. The drawbacks of private clouds are that upfront costs can be high and that maintenance can be a challenge. In fact, private clouds are often seen as the most expensive option for enterprises. However, it's important to remember that its security capabilities, though expensive, are unparalleled. Private cloud models offer security features including dedicated resources, network isolation, restrictive compliance configurations, customized security policies, and complete control.

Key differences among public, private, and hybrid clouds

Knowing the fundamental differences among public, private, and hybrid cloud models is the best way to understand the finer details of private cloud security. The following table provides an introduction to the differences among these cloud architectures.

Public CloudPrivate CloudHybrid Cloud
OwnershipCSPEnterpriseEnterprise
AccessEveryoneVery FewSome
CostLow to mediumHighMedium to high
Customization and controlLowest controlHighest ControlModerate control
ComplianceWeak to mediumStrongMedium to strong
Data sovereignty and localizationDifficultEasyModerately difficult
Ease of managementEasyDifficultAverage
PerformanceLow to mediumVery highHigh
Resource sharingSharedNot sharedPartially shared
SecurityLow to mediumHighMedium to high
SustainabilityLowHighMedium

There is no single cloud architecture that works for every business. Enterprises need to consider the following factors before deciding whether private clouds will suit their operational and security needs:

  • Private cloud suitability depends on six critical factors that organizations must evaluate against their specific operational needs and constraints.

  • Compliance requirements: Organizations in highly regulated industries (healthcare, finance, government) often choose private clouds to meet strict regulatory standards. The dedicated infrastructure allows for precise compliance configurations that shared environments cannot guarantee.

  • Security requirements: Industries facing frequent cyber threats benefit from private cloud's isolated architecture. With the number of known cloud vulnerabilities exploding from approximately 1,700 in 2019 to 3,900 in 2023, the investment in a private cloud must align with actual risk levels and threat exposure.

  • Resource demands: Private clouds work best for predictable, steady workloads. Organizations with fluctuating demands should consider more elastic alternatives, as private clouds are difficult to modify after deployment.

  • Cost considerations: High upfront investment and ongoing maintenance costs require careful financial planning. Organizations must budget for specialized staff, infrastructure, and long-term operational expenses.

  • Scalability needs: Businesses expecting rapid growth or frequent architectural changes may find private clouds too rigid. The infrastructure lacks the instant scalability of public cloud alternatives.

  • Technical expertise: Successful private cloud deployment requires skilled IT and security professionals. Organizations lacking this expertise face significant implementation and security risks.

When should you implement private cloud security?

The decision to adopt a private cloud depends on specific business needs, risk tolerance, and regulatory obligations. Implementing a private cloud security strategy is most critical in scenarios where control and isolation are non-negotiable. Consider a private cloud when your organization:

  • Handles highly sensitive data: Industries such as finance, healthcare, and government often use private clouds to protect personally identifiable information (PII), protected health information (PHI), or classified data that requires strict isolation.

  • Must meet stringent compliance requirements: Regulations like GDPR, HIPAA, and FedRAMP impose specific rules on data residency, access controls, and auditing. A private cloud allows organizations to build an environment tailored to these exact compliance controls.

  • Requires predictable, high-performance workloads: Applications that demand consistent low latency and high throughput, such as high-frequency trading or large-scale data analytics, benefit from the dedicated resources of a private cloud, avoiding the 'noisy neighbor' effect found in public environments.

  • Needs deep infrastructure customization: If your operations depend on specialized hardware, legacy systems, or unique software configurations, a private cloud provides the flexibility to build and manage the entire technology stack.

If these factors align with your business priorities, a private cloud is a strong choice, and its security framework should be planned from the initial design phase.

Private cloud security best practices 

These seven proven practices help organizations build comprehensive defense strategies:

1. Optimize access control and identity management

Access control and identity management form the foundation of private cloud security by ensuring only authorized users can access specific resources. This zero-trust approach treats all users as potential security risks, requiring multiple verification steps before granting access to sensitive data or systems.

Effective IAM implementation prevents unauthorized access by enforcing the principle of least privilege—users receive only the minimum permissions necessary for their job functions. This reduces the attack surface and limits potential damage from compromised accounts.

2. Encrypt data

Data encryption protects sensitive information by converting it into unreadable code that requires specific keys to decrypt. This critical security layer ensures that even if attackers gain access to your data, they cannot read or exploit it without the corresponding decryption keys. However, adoption is lagging, with research showing that fewer than 10% of enterprises encrypt at least 80% of their sensitive cloud data.

Organizations must encrypt data in two states: at rest (stored data) and in transit (data moving between systems). This dual approach provides comprehensive protection against both storage breaches and network interception attacks.

3. Address the physical security of private cloud infrastructures

The physical security requirements of private cloud infrastructures vary depending on whether organizations opt for their own on-premises data centers or choose third-party services. Third-party providers handle physical security by themselves, but it's important for enterprises to choose companies with strong security reputations and track records.

Enterprises that have their own data centers must defend against illegitimate access and hazards to servers. Surveillance cameras, security personnel, hardware inspections, and fire protection are examples of physical security measures for private cloud infrastructures.

4. Enhance data privacy and protection

Private clouds offer more robust fortifications for data. However, enterprises still need to ensure that sensitive data is stored, managed, and utilized in adherence to laws and regulations. Some methods to ensure data privacy and protection include regularly backing up data, encrypting all data, implementing zero-trust principles like least privilege, keeping up with data hygiene and data lifecycles, and meticulously disposing of hardware containing sensitive information.

Data privacy and protection failures can be irreversibly damaging. For instance, TikTok was fined $368 million by the Irish Data Protection Commission for lapses in children’s data privacy.

5. Leverage security tools and technologies

Comprehensive security tooling enables organizations to maintain continuous protection across their private cloud infrastructure through automated discovery, risk prioritization, and threat remediation.

Essential security capabilities include:

  • Cloud detection and response (CDR)

  • Cloud security posture management (CSPM)

  • Data security posture management (DSPM)

  • Cloud infrastructure entitlement management (CIEM)

  • Cloud workload protection platforms (CWPP)

Platform consolidation is critical—managing separate security tools creates dangerous gaps and operational inefficiencies. Unified platforms eliminate these silos while providing complete visibility and coordinated response capabilities across the entire private cloud environment.

6. Implement two-factor authentication

A single authentication step is rarely enough to protect your private cloud infrastructure from threats. It's important to implement two-factor authentication so that every user is vetted for legitimacy using two different kinds of authentication criteria or credentials. For example, a password is a common primary authentication method. However, authentication can be strengthened if a secondary measure such as a one-time password or biometrics verification is added.

7. Ensure comprehensive monitoring and logging

The era of periodic vulnerability management is gone. The safety of a private cloud ecosystem can only be maintained if enterprises continuously and diligently monitor and remediate critical vulnerabilities in their environments. Companies also need to meticulously log security measures, risks, vulnerabilities, and remediation actions because these reports can help other threat intelligence initiatives and strengthen their overall security posture.

Private cloud risks and challenges

Private cloud environments face significant security challenges that can result in devastating business impact. Recent data shows over 400 million people were affected by data breaches in 2023, highlighting the critical importance of strong security measures.

Primary private cloud security risks include:

  • Misconfigurations: Improper settings create vulnerabilities that attackers can exploit

  • Integration complexity: Connecting private clouds with existing systems introduces new attack vectors

  • Monitoring gaps: Limited visibility makes it difficult to detect and respond to threats quickly

  • Talent shortages: Lack of skilled security professionals increases implementation and maintenance risks

  • Compliance violations: Regulatory failures can result in significant financial and reputational damage

The single-tenant nature of private clouds creates a concentrated risk profile—when security fails, the entire organization's data and operations are at stake. However, implementing comprehensive security best practices and partnering with experienced cloud security providers like Wiz can effectively mitigate these risks.

Legal and compliance considerations for private clouds

While private clouds offer greater control, they also shift more compliance responsibility onto the organization. Navigating the legal landscape is a critical part of private cloud security.

  • Data Sovereignty and Residency: Many countries have laws requiring that citizen data be stored and processed within specific geographic borders. A private cloud makes it easier to control the physical location of data and servers, which is essential for complying with data sovereignty regulations.

  • Industry-Specific Regulations: Sectors like healthcare (HIPAA), finance (PCI DSS), and government (FedRAMP) have strict security and compliance mandates. A private cloud can be custom-built to meet the specific controls required by these frameworks, such as data encryption standards and access logging.

  • Shared Responsibility Model: Even in a hosted private cloud, the organization is responsible for securing its data, managing user access, and ensuring application-level compliance. The cloud provider typically handles the security of the cloud (physical data centers, network infrastructure), while the customer is responsible for security in the cloud.

  • Audit and Reporting: Demonstrating compliance requires detailed audit trails. A unified security platform is crucial for generating the comprehensive logs and reports needed for compliance verification. For example, a platform like Wiz provides continuous monitoring and automated reporting across cloud environments to simplify this process.

The best approach to private cloud security

Effective private cloud security requires a comprehensive approach that addresses the unique challenges of dedicated cloud environments. Organizations need integrated solutions that combine elements of CSPM, CIEM, DSPM, and more.

The complexity of private cloud security—from managing single-tenant risks to ensuring compliance—demands specialized expertise and unified tooling. Rather than managing multiple point solutions, successful organizations adopt platforms that provide complete visibility and control across their entire private cloud infrastructure.

Want to learn more about how Wiz can serve your organization and secure your private cloud? Get a demo now. 

Frequently asked questions about private cloud security