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Whats a private cloud?
its like a public cloud but private ;). kahashi I would like to do this project with you. Who know a private cloud could be a great thing.
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ok a) what is your start up cash looking like? b) you need to have an Identical server farm set up in at least 3 geographically disparate data centers c) you need to hire lawyers to cover your butts from law suites and hire on site staff as well as linux/windows server admins to handle the SLA's you negotiate with clients D) you need to have awesome purchasing and provisioning connections because each person you provide a cloud environment to essentially wants a custom system.
A private cloud is essentially Dedicated hosting package with colocational hosting ontop of it with a Virtualized base (vmware/ xen/ citrix's version of xen/ Microsofts VM software). These are by far the largest cash cow in the cloud market but they are also the most prone to law suites. Usually only very large coorporations with a governmental mandate for regulatory data keeping provision these types of things.
If you are still interested I would suggest checking out Xen.org and the backblaze storage server specs and design offered freely. http://blog.backblaze.com/2009/09/01/petabytes-on-a-budget-how-to-build-cheap-cloud-storage/