There are three common ways an organisation can build a cloud environment: public private, hybrid (and multi-cloud, which is the combination of the three). Hosted private cloud refers to cloud infrastructure (typically compute, storage, and network) provisioned for exclusive use by a single organisation serving a single internal consumer or multiple internal consumers (e.g. business units), even when not in use by that organisation. It is managed and hosted off-premises in a vendor data centre. Resources can be provisioned through a self-service portal, and this process is completely automated.
Organisations often turn to hosted private clouds to reduce risks or costs associated with performance and security when they are looking to vacate their own data centres. A hosted private cloud can help supplement primary platforms or accelerate cloud journeys, and is often used as a temporary solution on the road to public cloud.
A hosted private cloud is often used to fill the gap between public and private cloud, and is ideal for speeding up migration, accommodating specific workloads that are not designed for the cloud, or simply delivering a single-tenanted solution.