Private networking works the same as it does in your home or office. Your server is connected to a network that is local to the data center it is in and then can talk to our backend services. An added benefit is that you can utilize your private network for other uses as well. A popular use case is for secure remote access. Instead of opening SSH or RDP on the public internet, you can VPN into our private network and access your server that way. Another use case is if you have multiple servers, such as a front-end web server and back-end database server. The database server does not have to be routable on the Internet. This allows your web server to talk to the database server over a secure, private connection. 

Private networking also doesn't count against your traffic meter. Only outbound public bandwidth. As we roll out our private network, we will offer more and more backend services such as DNS, software update servers, and more. This means that when your server pulls updates, it will do so from the private network and those updates will not count against your bandwidth meter.