<<If it's truly a closed network, then great.>>
The "Cloud" is a closed network in that it is only open to anyone who has an attachment to it. Granted, in the usual use of the word, it has a LOT of folks able to be attached. But it is still closed. Don't believe me? Try to connect to the cloud on your computer without an internet connection. Can't be done.
This is the same thing you would do by bringing the server in locally and only connecting computers to it that you want to have access.
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