Cloud computing is a model that provides on-demand access to shared configurable computing resources like networks, servers, storage, and services over the internet. It has characteristics like self-service, broad network access, resource pooling, rapid elasticity and measured service. There are different types of cloud including private, public and hybrid clouds. A private cloud involves hosting cloud infrastructure on private servers within an organization's internal network. It provides more control and security but less flexibility than public clouds. Building a private cloud requires analyzing costs and benefits, developing processes and policies, selecting open source or third party software, and integrating infrastructure, platforms and applications while ensuring security.