When you get down to brass tacks, the cloud is simply a server somewhere outside the four walls of your enterprise. Whether you share (multi-tenanted) space on the server or have one all to yourself, the same question revolving security still pertain. Is it safe? The answer lies on how well you have prepared and monitor your processes despite where your data sits.
You realize the overarching benefits of the cloud, but you are a bit wary regarding the security of any data stored and transacted in these virtualized environments. But the cost-saving benefits and user preference and resource delegation of the cloud are such that not integrating some processes, applications and data is counterproductive to your overall IT strategy. So you decide that a private cloud is a more secure route that its public counterpart. But are you really any more secure?
The quick answer is no. But not for the reason you might think. A private cloud is infrastructure operated solely for a single organization. The only difference is that your data is segregated from any other organization. And if that brings you any semblance of peace, then it’s a good investment. It all depends on your business need. It offers greater control, but means you shoulder all the overhead, updating, risk management and related costs. And if you factor in the compliance requirements for financial or healthcare related companies, it might be the better option.