What are some characteristics of private cloud?

Prepare for the SAP S/4HANA Cloud, Private Edition Implementation with SAP Activate exam with flashcards and multiple-choice questions, complete with hints and detailed explanations. Ace your certification test!

A private cloud is designed to serve a single organization, providing enhanced security, customization, and control compared to other cloud deployment models. One of the defining characteristics of a private cloud is its architecture, which typically utilizes a single-tenant server. This means that the resources and services are dedicated entirely to one organization, rather than being shared among multiple tenants as seen in public cloud models. This setup allows for tailored configurations and greater compliance with internal policies and regulatory requirements.

In contrast, while the other choices present valid points regarding cloud computing, they do not accurately define the characteristics of a private cloud. For example, lower total cost of ownership than on-premise might be true for some scenarios, depending on organizational needs and usage, but it isn't universally applicable to private clouds. Software installation on a customer site is more representative of a traditional on-premise solution rather than cloud computing. Similarly, a perpetual license is typically associated with on-premise solutions where the organization purchases the software indefinitely, whereas private cloud environments often adopt a subscription-based model for software provisioning.

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