Private cloud: maximum control

A private cloud combines the flexibility of modern cloud architectures with the security and control of traditional IT infrastructures. The private cloud is the ideal solution for companies with high security requirements, regulatory requirements or the need for complete data sovereignty. Konfuzio offers dedicated private cloud deployments for AI-supported document processing that meet the highest security standards while maintaining the agility of modern cloud architectures.

In contrast to the public cloud, resources are not shared with other customers. The infrastructure is operated either in the company's own data center or by a specialist hosting provider, with the company retaining complete control over data and configurations. This architecture is particularly suitable for regulated industries such as banking, insurance and public authorities, where compliance requirements and data protection have top priority.

What distinguishes private clouds from other models?

The distinction between different cloud models is essential for strategic IT decisions. In the public cloud, companies use shared infrastructure from multiple providers such as AWS, Microsoft Azure or Google Cloud. Resources are provided via the internet and shared between different customers, which offers cost benefits but requires compromises in terms of control and data sovereignty.

The private cloud, on the other hand, offers dedicated resources for a single company. These can be operated either in the company's own data center or with a hosting provider. Companies retain full control over data, configurations and security policies. Higher security standards can be implemented and performance is predictable as there is no resource sharing with other users.

The hybrid cloud combines public and private cloud elements. Sensitive data remains in the private cloud, while less critical workloads run in the public cloud. This flexibility by combining different models enables optimum cost efficiency while maintaining data sovereignty for business-critical information. Medium-sized to large companies in particular benefit from this approach, as they can combine both flexibility and control as required.

Advantages for AI applications

Private cloud solutions offer specific advantages for AI-supported document processing. Complete data sovereignty is a key aspect here. Documents never leave the controlled infrastructure, which is particularly relevant for banks when processing loan applications with sensitive financial data or for insurance companies with health data in claims applications. The data is processed exclusively in German or European data centers so that regulatory requirements such as BAIT for banks or VAIT for insurance companies can be met.

Security through isolation is another important advantage. In public clouds, other customers can theoretically influence performance or pose security risks. In the private cloud, the company is the only user of the infrastructure. Dedicated network segmentation enables customizable firewall rules without cloud provider restrictions. Own intrusion detection systems can be implemented and the company retains full control over patch management times. Hardware-based encryption through Hardware Security Modules ensures the highest security standards.

Performance in private clouds is predictable and constant. No fluctuations caused by other clients affect processing. Dedicated CPU, RAM, storage and network bandwidth are guaranteed. Dedicated GPU servers can be used for AI workloads, and low-latency networks optimize microservices communication. This leads to consistent processing times, which are essential for business-critical applications.

Deployment variants

Private clouds can be operated in different variants. With the on-premise private cloud, the hardware is located in the company's own data center. This variant offers full physical control and is suitable for organizations with the strictest security requirements. However, the initial investment costs are high and the IT department bears full responsibility for operation.

The hosted private cloud represents a middle ground. Hardware is placed in an external data center, but the company rents dedicated servers. This reduces physical responsibility and enables the use of professional data center infrastructure. Providers such as Hetzner, OVH or plusserver offer such solutions with different service level agreements. The company retains control over software and configurations, while hardware maintenance is handled by the provider.

The managed private cloud offers the lowest operating costs. The provider operates the infrastructure completely, while the company uses dedicated resources via APIs or portals. Providers such as IBM Cloud Private or VMware Cloud not only take over the hardware, but also a large part of the operational management. This option is particularly suitable for companies that want to take advantage of private cloud benefits but do not have the resources for a large operations team.

Technical architecture

A typical Konfuzio private cloud is based on Kubernetes clusters, which ensure optimum scalability and maintainability. The hardware requirements for a production environment include at least three master nodes, each with four vCPUs and eight gigabytes of RAM for high availability. Five worker nodes, each with eight vCPUs and 32 gigabytes of RAM, execute the application workloads. GPU workers with NVIDIA T4 cards can optionally be used for accelerated processing. A dedicated database server with four vCPUs and 16 gigabytes of RAM as well as 500 gigabytes of SSD storage manages the metadata.

The software stack is based on proven open source technologies. Ubuntu 22.04 LTS or Red Hat Enterprise Linux 9 serve as the operating system. The container runtime used is containerd, which is Docker-compatible. Kubernetes 1.28 or newer orchestrates the containers, while Istio provides extended network features as a service mesh. Prometheus and Grafana handle the monitoring, and the ELK stack consisting of Elasticsearch, Logstash and Kibana manages the central logging.

The implementation takes place in several phases. In the first two weeks, the infrastructure is provisioned, including network configuration with VLANs and firewalls as well as storage setup. The third week includes the Kubernetes installation with cluster bootstrap, CNI plugin installation for network policies and Ingress Controller setup. In week four, Konfuzio deployment via Helm Charts, including secrets management and load testing. The last two weeks are reserved for integration, SSO connection, monitoring configuration and user acceptance testing.

Costs and TCO comparison

The cost structure of a private cloud differs fundamentally from public cloud models. A small installation for up to 5,000 documents per day costs around 1,200 to 1,500 euros per month. Medium installations for 5,000 to 20,000 documents per day cost between 2,000 and 3,000 euros per month. Enterprise setups for over 50,000 documents per day start at 5,000 euros per month. In addition, there are one-off setup costs of around 5,000 euros for consulting, implementation and initial configuration.

The comparison with the public cloud shows different cost trends. An equivalent public cloud installation costs less initially, as no hardware investments are necessary. However, the running costs of around EUR 2,500 per month remain consistently high. The private cloud typically pays for itself after 12 to 18 months, after which the total cost of ownership is lower. With consistently high utilization, the private cloud offers significant cost advantages.

The cost drivers in private clouds are easy to calculate. Dedicated hardware rental accounts for around 60 percent of monthly costs. Managed services increase costs by 30 to 50 percent, but significantly reduce internal personnel costs. Network costs for site-to-site VPN or DirectConnect are between 100 and 300 euros per month. Annual compliance audits cost between 5,000 and 15,000 euros, but are mandatory for regulated industries.

Frequently asked questions

What does a private cloud for Konfuzio cost?

A managed private cloud for Konfuzio typically costs between 1,200 and 3,000 euros per month, depending on resource requirements and document volume. One-off setup costs of around 5,000 euros are added. For self-managed setups with rented dedicated servers, companies can start from around 600 euros per month, but then require internal DevOps expertise. The total cost of ownership over five years is significantly lower than public cloud costs with constant utilization.

Is private cloud really more secure than public cloud?

Private cloud offers greater control, which can translate into better security, but only if configured correctly. The advantage lies in the lack of resource sharing with other customers and full control over security configurations. However, companies themselves are responsible for patches and security updates. Large public cloud providers invest billions in security. Private clouds are often the better choice for regulated industries, while modern public clouds offer sufficient security for normal companies.

Can I migrate from public to private cloud?

Migration is possible and Konfuzio's container architecture makes it relatively simple. The process typically takes four to eight weeks and includes exporting data from the public cloud, setting up the private cloud infrastructure, deploying the Konfuzio containers, importing data and testing. Migration playbooks and tools support the process. The biggest challenge is usually data migration for large document volumes in the terabyte range, which requires the corresponding bandwidth and time.

Which private cloud provider is best?

The choice depends on your priorities. For maximum data sovereignty, Open Telekom Cloud or plusserver are suitable as German providers under German law. Hetzner Dedicated Servers offer the best price-performance ratio. For compliance requirements such as KRITIS or BAIT, plusserver or OTC with corresponding certifications are ideal. AWS Outposts is an option for simple migration from AWS. Konfuzio is cloud-agnostic and runs on all Kubernetes-capable platforms, so the choice can be made flexibly according to individual requirements.

Related articles

Choosing the right cloud strategy requires a comprehensive analysis of various factors. For more in-depth insights into specific cloud models, see our articles on the Cloud hosting an overview of all available options. The Multicloud strategy explains how several cloud providers can be optimally combined. Practical migration instructions can be found in the Cloud migration guide, while the comparison between On-premise and cloud helps with the fundamental decision-making process.