What everyone seems to be forgetting is that private cloud, like any cloud, is half infrastructure virtualization and process automation, and half application virtualization and process automation. A cloud does not exist with only one part. Yet reviewing the private cloud offerings of several software vendors such as VMWare and VCE show their definition is woefully short of a full cloud.
What about application service provisioning? What about the service discovery? What about service level management? What about session availability and continuity? None of these topics are covered by private cloud software vendors.
Where there is value, but it's more that "Private Cloud nesting underneath Public Cloud" flavor are the Private Cloud solution providers (CSC, Amazon ,etc.). They offer an entire stack, PaaS sitting on IaaS, on which one can deploy a private cloud.
A private cloud that only includes infrastructure is not private cloud; it's highly virtualized infrastructure. And sometimes it's not even highly virtualized...