Startup with limited capital wants to participate in a private cloud approach without purchasing extensive hardware. What is the next best option?

• A. Build their own data center
• B. Rent dedicated hardware from a vendor
• C. Create a VPC on an existing cloud service provider
• D. Deploy a public cloud-only solution

Answer: (C)

The main idea here is to create a private-cloud-like environment without buying hardware by using a virtual private cloud inside an existing cloud provider. A VPC gives you an isolated network space within a public cloud, where you control IP ranges, subnets, routing, and security—so you can run workloads in private subnets with restricted access and private connectivity. You can also link this environment to on‑prem networks or other clouds via VPNs or dedicated connections, giving you the governance and isolation typical of a private cloud while still staying scalable and cost-efficient.

This is the best option because it delivers the privacy and control of a private cloud without the capital expense of a data center build. Renting dedicated hardware still involves procuring and maintaining physical gear, which isn’t ideal for limited capital. A fully public-cloud approach wouldn’t provide the same level of network isolation and centralized control that a private-cloud setup requires. Building your own data center would defeat the goal of avoiding hardware investment.