Description from
the official
blog post,
Amazon Virtual Private Cloud (Amazon VPC) lets you create your own logically isolated set of Amazon EC2 instances and connect it to your existing network using an IPsec VPN connection. This new offering lets you take advantage of the low cost and flexibility of AWS while leveraging the investment you have already made in your IT infrastructure.
A few excerpted
comments from Werner’s
blog,
These CIOs know that what is sometimes
dubbed "private cloud" does not meet their goal as it does not give
them the benefits of the cloud: true elasticity and capex elimination.
..
To achieve true cloud-like elasticity in a private
cloud, such that you can rapidly scale up and down in your own datacenter, will
require you to allocate significant hardware capacity. While to your internal
customers it may appear that they have increased efficiency, at the company
level you still own all the capital expense of the IT infrastructure. Without
the diversity and heterogeneity of the large number of AWS cloud customers to
drive a high utilization level, it can never be a cost-effective solution.
..
Introducing Amazon Virtual Private Cloud
We have developed Amazon Virtual Private Cloud (Amazon VPC) to allow our customers to seamlessly extend their IT infrastructure into the cloud while maintaining the levels of isolation required for their enterprise management tools to do their work.
A graphic from the official
blog post,

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