Types of Cloud Computing

Cloud computing is like renting space on the internet for storing and processing data. Instead of
keeping everything on your computer or phone, you use powerful computers located somewhere
else, called data centers. These data centers are managed by companies like Amazon, Google, and
Microsoft.
Types of Clouds
There are five main types of cloud computing based on how they are set up and used:
 Public Cloud
 Private Cloud
 Hybrid Cloud
 Community Cloud
 Multi-Cloud
1. Public Cloud
Definition: Public cloud services are offered over the internet and are available to anyone who
wants to use them. These services are provided by third-party providers.
Characteristics:
 Accessibility: Accessible to anyone with an internet connection.
 Shared Infrastructure: Resources are shared among multiple users.
 Scalability: Easily scalable based on demand.
 Pay-per-Usage: Users pay only for the resources they use.
  Managed by Service Providers: Maintenance and security are handled by the service
provider.
 Reliability and Redundancy: Providers ensure high reliability with redundant systems.
Advantages:
 Lower costs compared to private and hybrid clouds.
 No need for maintenance as it is managed by the provider.
 Highly scalable and flexible.
 Accessible from anywhere with an internet connection.
 Rapid deployment of services.
Disadvantages:
 Less secure as resources are shared.
 Performance depends on internet speed.
 Data is controlled by the service provider.
 Potential compliance and regulatory issues.
 Risk of vendor lock-in.
Examples:
  Amazon Web Services (AWS)
 Microsoft Azure
 Google Cloud Platform (GCP)
2. Private Cloud
Definition: Private cloud is used exclusively by one organization. It can be managed internally or
by a third party.
Characteristics:
 Exclusive Use: Dedicated to a single organization.
 Control and Security: Higher control over data and security.
 Customization: Can be tailored to specific needs.
  Scalability: Can scale within the organization's resources.
 Performance and Reliability: Better performance control.
 Compliance: Easier to meet regulatory requirements.
Advantages:
 High security and privacy.
 Better performance and space capacity.
 Full control over the cloud environment.
 Suitable for organizations with strict compliance needs.
Disadvantages:
 Higher costs for setup and maintenance.
 Requires skilled personnel to manage.
 Limited scalability compared to public cloud.
 Slower deployment timelines.
 Risk of outdated technology.
Examples:
 VMware vSphere
  Microsoft Azure Stack
 OpenStack
3. Hybrid Cloud
Definition: A hybrid cloud combines public and private clouds, allowing data and applications to
be shared between them.

Characteristics:
  Integration of Public and Private Clouds: Combines the benefits of both.
 Flexibility and Scalability: Dynamic resource allocation.
 Enhanced Security: Control over sensitive data.
 Cost Optimization: Balances cost and efficiency.
 Data Portability: Move data between clouds as needed.
Advantages:
 Greater security than public cloud.
 Flexible resource allocation.
 Reduced risk with a mix of private and public clouds.
 Better business continuity and disaster recovery.
Disadvantages:
 Complex management.
 Dependence on service providers.
 Potential data integration challenges.
 Higher costs for managing multiple environments.
Examples:
  Google Application Suite
 Office 365
 AWS
4. Community Cloud
Definition: Community cloud is shared among several organizations with common concerns (e.g.,
security, compliance).

Characteristics:
  Shared Infrastructure: Accessible to a specific community.
 Community-Specific Services: Tailored to meet the community's needs.
 Community Ownership and Management: Managed by one or more organizations within
the community.
 Enhanced Security: Higher security than public cloud.
 Cost Sharing: Costs are shared among the community members.
Advantages:
 Cost-effective for the community.
 Better security than public cloud.
 Encourages collaboration and knowledge sharing.
 Customizable to meet community needs.
Disadvantages:
 Not suitable for every organization.
 Security not as high as private cloud.
 Limited scalability and performance.
 Potential conflicts among community members.
Examples:
 Health Care community cloud
5. Multi-Cloud
Definition: Multi-cloud uses multiple cloud services from different providers to meet various
needs.

Characteristics:
 Multiple Cloud Providers: Utilizes services from various providers.
 Diversification and Risk Reduction: Reduces risk of vendor lock-in.
 Flexibility and Vendor Independence: Choose the best services from different providers.
 Service and Cost Optimization: Optimize costs by selecting suitable providers.
  Enhanced Reliability: Improved performance and availability.
Advantages:
 Avoids dependency on a single vendor.
 Enhances reliability and resilience.
 Optimizes costs and services.
 Meets compliance requirements.
 Access to specialized services.
Disadvantages:
 Increased management complexity.
 Potential higher costs.
 Challenges in data governance.
 Integration and compatibility issues.
Examples:
 AWS
 Microsoft Azure
 Google Cloud Platform
Comparison Table

Community
Parameter Public Cloud Private Cloud Hybrid Cloud Multi-Cloud
Cloud

Service Enterprise/ Enterprise/ Community/ Multiple

Host
provider Third party Third party Third party providers

Multiple
General Community
Users Selected users Selected users organizatio
public members
ns

Internet,
Access Internet Internet, VPN Internet, VPN Internet, VPN
VPN

Multiple
Service
Owner Enterprise Enterprise Community organizatio
provider
ns

Variable
Pay-per- Infrastructure Mixed
Cost Shared cost depending
usage investment (variable)
on usage
 Community
Parameter Public Cloud Private Cloud Hybrid Cloud Multi-Cloud
Cloud

Provider's Varied Varied

Enhanced Varied (depends
Security responsibilit (depends on (depends
control on setup)
y setup) on setup)

Scalable Scalable Scalable

Highly Scalable within
Scalability within within within
scalable resources
resources resources resources

Varied Varied
Customizatio Limited Varied (depends
High control (depends on (depends
n control on setup)
setup) on setup)

Shared Varied Shared

Resource Shared among
among Not shared (depends on among
Sharing community
users setup) providers
Economics of Cloud Computing
Pay As You Go
Imagine you only pay for what you use, like paying for the electricity or water you use at home. In
cloud computing, you only pay for the computing resources you actually use, making it very cost-
effective.
Benefits for Developers and Start-Ups
Lower Costs
Capital Cost: Usually, businesses need to spend a lot of money upfront to buy hardware and set up
servers. With cloud computing, you avoid these big initial expenses. This is great for start-ups that
need to save money and invest wisely.
Maintenance and Administrative Costs: Cloud providers take care of all the maintenance and
updates. This means you don't need to hire extra staff or spend time and money on maintaining the
infrastructure yourself.
Types of Cloud Pricing
Tiered Pricing
Cloud services are offered in different levels. Each level comes with a set price and includes certain
services. For example, Amazon EC2 has different pricing levels, so you can choose the one that fits
your needs and budget.
Per-unit Pricing
You pay based on the specific amount of service you use, like paying for each gallon of gas. For
instance, GoGrid charges based on how much RAM (memory) you use per hour.
Subscription-based Pricing
You pay a regular fee to use the software or service, similar to how you pay for Netflix or Spotify.
Key Concepts in Cloud Economics
Total Cost of Ownership (TCO)
TCO includes all costs of using cloud services versus running your own data center. For your own
data center, this includes buying hardware, paying for electricity, and hiring IT staff. For the cloud, it
mainly includes the monthly fees you pay to the cloud provider.
Efficiency Improvements
Cloud computing can make your business more efficient by improving teamwork and speeding up
development. Teams can work together more easily, and updates can be released faster.
Operational Resilience
Cloud providers ensure high reliability and uptime. They are prepared for unexpected problems like
natural disasters or power outages, so your services stay available.
Operational Agility
Cloud services can quickly adjust to changes in demand. If you suddenly need more resources, you
can get them instantly. This flexibility helps you handle busy times without needing extra hardware
that might go unused later.
Why Cloud Economics Matter
Cost Savings and Efficiency
Moving to the cloud can save money and improve how you work, but you need to carefully analyze
if the benefits are worth the costs. Think about both the short-term and long-term impacts on your
budget and operations.
Custom Strategies
Every business is different, so there isn’t a one-size-fits-all strategy for moving to the cloud. You
need a custom plan to make sure the move is smooth and beneficial.
Use Cases and Considerations
Scalability and Flexibility
Cloud platforms can grow with your business, providing the resources you need as you expand. This
is especially helpful for start-ups that might grow quickly.
Disaster Recovery
Cloud providers offer strong disaster recovery options, ensuring your data is safe and can be quickly
restored if something goes wrong. This is often better than what small businesses can do on their
own.
Remote Work
Cloud services support working from anywhere, making it easier for employees to access what they
need and collaborate, even if they’re not in the same location.
Common Mistakes to Avoid
 Assuming Financials Don't Change: Initial savings might not last forever. Keep checking costs
and benefits over time.
 Basing Projections Only on Historical Usage: Future needs might be different. Consider
changes in usage when planning.
 Treating All Cloud Elements the Same: Different resources (like computing power and storage)
have different costs and priorities. Focus on what benefits the most from cloud services.
 Putting All Data in the Cloud: Not everything needs to be in the cloud. Some things might be
cheaper or better to keep as they are.
Conclusion
Cloud computing can save money and improve efficiency, but it requires careful planning and
regular review to get the most benefits. Each business needs to assess its unique needs and create
a tailored strategy for moving to the cloud.