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Cloud Computing Fundamentals

So, What is “The Cloud?”

There are many definitions of cloud computing across the Internet. To help you understand the various aspects of “The Cloud,” we’ve explained terminology here.

Cloud computing represents a long-standing vision of moving application computing power to the Internet at a much lower cost per computing cycle. Cloud computing, whether supporting a Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), or Infrastructure-as-a-Service (IaaS), or other variant, is a complex, multi-faceted technology solution incorporating numerous hardware, software, middleware, security and monitoring, and other capabilities to ensure application and information processing, reliability and performance.

Benefits to IT Organizations Include:

  • Flexibility. Allows rapid implementation timelines that can align with strategic and tactical initiatives.
  • Cost Reduction. Reduces capital expenditures and associated overhead involved in installation and management.
  • Scalability. On-demand scalability/provisioning with utility-based pricing.

Learn more about how a cloud solution can address IT needs and requirements, and improve the end-user experience at the same time. Read our white paper Latency: The Achilles Heel of Cloud Computing.

Types of Cloud Computing Solutions

Cloud computing comes in many different flavors depending on the intended usage. For instance, a manufacturing organization may use Infrastructure-as-a-Service to test new a new product or test a new code base. Or a software company may deploy a software application in a Platform-as-a-Service cloud environment. In addition, it is important to understand the distinctions between private cloud environments and public cloud environments.

Private Versus Public Cloud Computing

There are many similarities between Private Cloud and Public Cloud Computing. The following table compares the two solutions.


  • Private Cloud
  • Public Cloud


  • Cloud runs multiple applications of a single customer
  • Cloud runs multiple applications of numerous customers


  • Computing resources can be tailored to the customer’s needs
  • Computing resources are purchased in pre-defined increments (bundles)


  • Managed service delivery
  • Highly-automated service delivery


  • Customers need more control over their environment
  • Customers need more flexibility in scaling the environment up and down


  • Higher utilization of physical resources
  • Highest utilization of physical resources

  • Security of a dedicated platform
  • Economies of scale of a shared platform


Public Cloud Computing Environments

The following cloud computing types are generally associated with public cloud computing.

Cloud File Storage

Cloud file storage is online file storage that provides the additional benefits of on-demand provisioning and usage metering. In other words, storage capacity is available as customer’s need it without the responsibility of installing and configuring new hardware and software. Though cloud file storage is generally associated with “cloud computing,” the term is more aptly applied to cloud environments that provide compute resources to support the operation of applications.

Software-as-a-Service (SaaS)

SaaS refers to the actual delivery model of applications across the Internet to end-users. Though a SaaS provider’s backend platform may be a simplified, dedicated environment, SaaS implementations are generally associated with private cloud and public cloud usage, in particular, applications running in a PaaS environment.

Platform-as-a-Service (PaaS)

PaaS is a cloud platform whereby all the underlying hardware and software infrastructure are provided and configured, ready for deployment of applications. A PaaS service will typically include a development tool to allow for application developers to focus on application design and deployment rather than on creation and management of the underlying infrastructure.

Infrastructure-as-a-Service (IaaS)

IaaS is a cloud platform whereby all the underlying hardware and software infrastructure, excluding the operating system, is available for use. IaaS typically relates to usage of physical server and storage capacity provided through virtual machines. Customers of IaaS are essentially “renting” space to load their preferred operating environment and applications.

Other Cloud Computing Models

Additional cloud computing models may include more special purpose aspects. This may include a “Compliance Cloud,” a cloud environment that supports certain compliance requirements for specific industries or market segments (e.g., HIPAA compliance for healthcare), or mandated geographical boundaries such as municipal, state or federal legal compliance requirements, and foreign government regulations.

More About Cloud


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Download this newsletter to learn about the various options enterprises face on the road to virtualization and find the right path for your business.

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