What is a Private Network? Definition & Use Cases

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What is a Private Network? 

A private network connects a controlled number of computers and is usually local to the physical devices. This network is completely segregated from the public network. Data that moves across a private network is not in the wild. It is not visible to anyone outside the private network and is untouchable by any public means while in transit. Because this data is sent across a separate network, there’s no need for encryption while in transit. The data is protected based on the extremely-limited access.

Do You Need a Private Network?

Private networking requires more than one server. So, for smaller setups or a situation where you’re not dealing with anything sensitive, you may be able to operate without a private network. If you have a separate database server or application server, however, you may want to consider the private network approach. This will add in an extra layer of security while the data is in transit. As an added bonus, due to the limited access, private networks are usually much faster.

Over the past few years, the need for private cloud hosting has exploded. As companies realize that they can get on-demand scalability and flexibility without complicated setups or breaking the bank, they become very interested in what new implementations of solutions like VMware have to offer. 

Historically, VMware hasn’t been offered as a viable choice for most mid-sized companies. There were giant VMware providers servicing the enterprise market or niche hosting companies with shared options for fledgling ideas. 

When Liquid Web first introduced Dedicated VMware Private Cloud, a whole new way for most companies to host their web servers, applications, databases, and software was opened. Liquid Web realized the barrier to entry could be lowered even further to make the benefits of VMware or virtual machine (VM-based) hosting accessible to as many companies as possible. 

Multi-Tenant VMware Private Cloud is a new Liquid Web offering that works for nearly every growing company out there. Customers are willing to move their hosting needs from VPS hosting, shared environments, and even dedicated server hosting.

VMware Multi-Tenant Private Cloud Your Private Network Environment

VMware Multi-Tenant Private Cloud: Your Private Network Environment 

Most companies that decide to move to a private network environment do so for at least one of the following reasons: scalability, flexibility, cost-effectiveness, or ease of use. VMware Multi-Tenant Private Cloud can assist with them all:


Scalability is expressed through smooth growth without the need to reconfigure your environment. You don’t have to perfectly predict the need for extra servers and scale in anticipation of growth, as lots of companies on dedicated servers do. Just add the required resources to the servers you already use when you are ready. 

Similarly, it becomes cumbersome for smaller companies to scale their setup beyond a few VPS servers. In this case, moving to a VMware Multi-Tenant Private Cloud makes it much easier to maintain robust IT architecture


Flexibility means a lot for companies that can’t work with cookie-cutter solutions that traditional hosting environments provide. Private cloud builds can be configured with the exact software customers require. 

In addition, a multi-tenant private cloud is perfect for companies that scale up and scale down (e.g., seasonally) since they only have to pay for the number of resources being used. 


Cost-effectiveness is key when it comes to VMware Multi-Tenant Private Cloud. Imagine a company using two dedicated web servers, each having 8 CPU cores, 16 GB of RAM, and 1 TB hard drives for $500. It doesn’t matter whether they only utilize half of those resources — they have to pay the full price for all the hardware regardless. 

With a multi-tenant private cloud, if you’re using half of those resources, you’re only paying for half of those resources. You never have to overbuy, which is essential during the supply chain issues the global economy is facing. Even better, your VMs can also operate at the same efficiency all the time. 

Ease of Use

A VMware Multi-Tenant Private Cloud is a fully managed solution. Liquid Web takes care of the entire hosting infrastructure, all the hardware, and the cloud platform. This way, customers can focus on their internal software and platforms their websites or applications are built on. 

Private Network Use Cases

To further illustrate the benefits of a VMware Multi-Tenant Private Cloud, let us provide two popular private network examples that are a perfect fit for such an environment. 

Private Network Example #1: Creating a Robust Mixed Environment

There are often two variations of the same problem when it comes to application architecture: either all application segments and servers are split up into multiple VPS servers, or they are all lumped together in a single dedicated server. Neither environment is ideal.

A VMware Multi-Tenant Private Cloud environment is a great solution to a more robust architecture required in this private network example. Customers can request as many servers as needed to equalize their environment. For example, they can have a few load-balancing web servers, a separate database server, a reporting server, and more — all of which will be working together in the same private network environment. 

What’s more, such an environment will remain scalable and flexible. It’s easy to assign additional resources as needed to any server without all the complicated VPS management. The customer will also only have to pay for the resources being used, which will likely result in significant cost savings compared to running servers in a dedicated environment. 

Private Network Example #2: Providing Services as a Value-Added Reseller (VAR)

Value-Added Resellers (VARs) — whether they are hosting companies, SaaS providers, web agencies, custom platforms, or integrators — can significantly improve their business and benefit greatly from switching to a VMware Multi-Tenant Private Cloud.

Instead of managing lots of VPS servers, lumping their clients in a shared hosting environment, or using dedicated resources, VARs can create VMs for every new client, accelerating onboarding and remaining easily scalable at any level. 

Liquid Web can also help VARs set up exact templates for every new virtual machine so that spinning off new ones takes as little time as possible, and lots of clients can be onboarded at once. 

VMware Private Cloud is an All-in-One Solution

Ready to give a VMware Multi-Tenant Private Cloud a try or have any questions? Get in touch with friendly technicians who will be happy to assist you and suggest the best way to move your architecture over to VMware for improved scalability and cost-effectiveness. 

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About the Author

Melanie Purkis

Melanie Purkis is the Director of Liquid Web's Managed Hosting Products & Services. Melanie has more than 25 years of experience with professional leadership, project management, process development, and technical support experience in the IT industry.

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