Solution

Private clouds allow organizations to customize their infrastructure, security measures, and application deployment according to specific needs, making them ideal for businesses with unique requirements or regulatory constraints. This level of customization is often not feasible in public clouds due to their shared nature, which standardizes services across multiple tenants. While public clouds offer scalability and cost-effectiveness, private clouds provide the benefits of tailored solutions, greater control over data, and compliance with regulatory requirements, especially for industries that handle sensitive information. Why Other Options are Incorrect: A) Public clouds offer higher security than private clouds: This is incorrect; private clouds typically provide higher security because they are dedicated to a single organization. B) Private clouds are typically more expensive to set up than public clouds: Generally true, but this statement doesn't capture the essence of the differences. C) Public clouds are more suitable for sensitive data than private clouds: Incorrect; private clouds are better suited for sensitive data due to their dedicated nature. E) Public clouds are hosted on-premises while private clouds are off-premises: This statement is inaccurate; public clouds are hosted off-premises by third-party providers, while private clouds can be hosted on-premises or off-premises.