A Private Cloud is implemented using a dedicated data center infrastructure of hardware and software that is used privately by an organization. The data center can be on-premises or off-premises. It is not shared with another organization. If the data center is shared, that is a Virtual Private Cloud.
The Cloud Computing Stack in a Private Cloud is dedicated to the organization. If the data center is shared but not the Cloud Computing Stack, that is a Virtual Private Cloud. If both the data center and the Cloud Computing Stack are shared, that is a Public Cloud.
A Private Cloud may participate in a Hybrid Cloud.
For arguments against using a Private Cloud, see Using a Public Cloud instead of an In-House Private Cloud.
The following figure uses Customer Relationship Management (CRM) Software as a Service (SaaS) to illustrate a Private Cloud.
More on the general topic: Types of Clouds in Cloud Computing
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The Savvy Manager's Guide
Douglas K Barry is also the author of a book that explains Web Services, service-oriented architecture, and Cloud Computing in an easy-to-understand, non-technical manner.
Web Services, Service-Oriented Architectures, and Cloud Computing: The Savvy Manager's Guide (Second Edition)
by Douglas K Barry with David Dick
This is a guide for the savvy manager who wants to capitalize on the wave of change that is occurring with Web Services, service-oriented architecture, and—more recently—Cloud Computing. The changes wrought by these technologies will require both a basic grasp of the technologies and an effective way to deal with how these changes will affect the people who build and use the systems in our organizations. This book covers both issues. Managers at all levels of all organizations must be aware of both the changes that we are now seeing and ways to deal with issues created by those changes.