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Private cloud refers to the cloud services provided to limited specific users including companies and organizations. The private cloud is largely divided into two types—"on-premises" platforms in which users purchase servers and other necessary equipment by themselves to establish the environment and manage operations, and "hosting" platforms in which equipment owned by the cloud operators is utilized.

Compared with the "public cloud" that can be used by everybody, the private cloud requires more costs for introducing equipment and maintaining, as users must construct their own exclusive cloud environment. However, the private cloud offers a variety of advantages, including the fact that users "can apply their original security policies" and "can have control over the operating software, application software, line speed and other factors."

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