Some organizations that are concerned about the privacy of their data but intrested in harnessing the power of cloud computing have build their very own private cloud. Read more below:

"Jim Swartz, CIO of Sybase, sees potential in cloud computing but isn't ready to give up his company's data to a third-party host. Instead, he has virtualised Sybase's servers -- essentially creating his own private cloud -- so he can study the best way to use the architecture.

At Sybase, a private cloud of virtual servers inside its data centre has saved nearly $US2 million annually since 2006, Swartz says, because the company can share computing power and storage resources across servers. The virtual setup also lets Sybase move data electronically from one physical site to another, for a more agile disaster recovery program.

Whenever you hear the term "private cloud", understand that it's "nothing more than virtualisation", notes David Linthicum, principal of Linthicum Group, a consulting firm that specialises in enterprise architecture and Web technologies. Virtualisation lets CIOs take advantage of the economics of cloud computing, he says, but within their own walls and under their own control."

http://www.cio.com.au/article/309978/cloud_computing_special_part_2_cloud_control?pp=4