A virtual private cloud is a good combination of traditional enterprise IT and cloud computing. It is a logical division of a service provider's public cloud multi-tenant architecture to support private cloud computing in a public cloud environment. What it means is that unlike public cloud environments, the hosted service in a private cloud environment sits behind a corporate firewall allowing an organization more control and security over its data. Since your virtual servers don’t need to share data buses or processor time with servers of other companies, you can get higher levels of performance on a private cloud.
A VPC works in a similar fashion to a virtual private network. Just as a VPN allows secure data transmission over a public network like Internet, a virtual private cloud provides secure data transfer between a public cloud computing service provider and a private enterprise. The service provider ensures that the integrity and security of data is maintained both during the transit phase and when it is inside the cloud hosting providers network.
Different service providers use different methods to keep the data safe and prevent its mingling with other customers data. Data safety is ensured by some or all of the following elements: encryption, tunnelling, private IP addressing or allocating a unique VLAN to each customer.