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Economies of scaleis the ability to reduce costs and gain efficiencywhen operating at large scale in comparison to operating at smaller scale. CapEx vs OpEx. Capital Expenditure (CapEx): This is the spending of money on phisical infraestructure. Operational Expenditure (OpEx): There is no up front cost, you pay for a service or product as you use it. Consumption-based model Cloud service providers operate on a consumption-based model. No upfront costs. No need to purchase and manage costly infrastructure that they may or may not use to its fullest. The ability to pay for additional resources when they are needed. The ability to stop paying for resources that are no longer needed.
Public Cloud A public cloud is owned by the cloud services provider (also known as a hosting provider). It provides resources and services to multiple organizations and users Ownership. This is the resources that an organization or end user uses. Examples include storage and processing power. Resources do not belong to the organization that is utilizing them, but rather they are owned and operated by a third party such as the cloud service provider. Multiple End Users. Public cloud modes may make their resources available to multiple organizations. Public Access. This provides access to the public. Availability. This is the most common cloud-type deployment model. Connectivity. Users and organizations are typically connected to the public cloud over the internet using a web browser. Skills. Public clouds do not require deep technical knowledge to set up and use its resources. With a public cloud, there is no local hardware to manage or keep up to date; everything runs on the cloud provider’s hardware. Advantages: No CapEx. You don’t have to buy a new server in order to scale. Agility. Applications can be made accessible quickly, and deprovisioned whenever needed. Consumption-based model. Organizations pay only for what they use, and operate under an OpEx model. Maintenance. Organizations have no responsibility for hardware maintenance or updates. Skills. No deep technical skills are required to deploy, use, and gain the benefits of a public cloud. Organizations can leverage the skills and expertise of the cloud provider to ensure workloads are secure, safe, and highly available. Disadvantages: Security. There may be specific security requirements that cannot be met by using public cloud. Compliance. There may be government policies, industry standards, or legal requirements which public clouds cannot meet. Ownership. Organizations don't own the hardware or services and cannot manage them as they may wish. Specific scenarios. If organizations have a unique business requirement, such as having to maintain a legacy application, it may be hard to meet that requirement with public cloud services. Private Cloud A private cloud is owned and operated by the organization that uses the resources from that cloud. They create a cloud environment in their own datacenter and provide self-service access to compute resources to users within their organization. Ownership. The owner and user of the cloud services are the same. Hardware. The owner is entirely responsible for the purchase, maintenance, and management of the cloud hardware. Users. A private cloud operates only within one organization and cloud computing resources are used exclusively by a single business or organization. Connectivity. A connection to a private cloud is typically made over a private network that is highly secure. Public access. Does not provide access to the public. Skills. Requires deep technical knowledge to set up, manage, and maintain. Advantages: Control. Organizations have complete control over the resources. Security. Organizations have complete control over security. Compliance. If organizations have very strict security, compliance, or legal requirements, a private cloud may be the only viable option. Specific scenarios. If an organization has a specific scenario not easily supported by a public cloud provider (such as having to maintain a legacy application), it may be preferable to run the application locally. Disadvantages: Upfront CapEx. Hardware must be purchased for start-up and maintenance. Agility. Private clouds are not as agile as public clouds, because you need to purchase and set up all the underlying infrastructure before they can be leveraged. Maintenance. Organizations have the responsibility for hardware maintenance and updates. Skills. Private clouds require in-house IT skills and expertise that may be hard to get or be costly. Hybrid Cloud A hybrid cloud combines both public and private clouds. Resource location. Specific resources run or are used in a public cloud, and others run or are used in a private cloud. Cost and efficiency. Hybrid cloud models allow an organization to leverage some of the benefits of cost, efficiency, and scale that are available with a public cloud model. Control. Organizations retain management control in private clouds. Skills. Technical skills are still required to maintain the private cloud and ensure both cloud models can operate together. Advantages: Flexibility. The most flexible scenario: with a hybrid cloud setup, an organization can decide to run their applications either in a private cloud or in a public cloud. Costs. Organizations can take advantage of economies of scale from public cloud providers for services and resources as they wish. This allows them to access cheaper storage than they can provide themselves. Control. Organizations can still access resources over which they have total control. Security. Organizations can still access resources for which they are responsible for security. Compliance. Organizations maintain the ability to comply with strict security, compliance, or legal requirements as needed. Specific scenarios. Organizations maintain the ability to support specific scenarios not easily supported by a public cloud provider, such as running legacy applications. In this case, they can keep the old system running locally, and connect it to the public cloud for authorization or storage. Additionally, they could host a website in the public cloud, and link it to a highly secure database hosted in their private cloud. Disadvantages: Upfront CapEx. Upfront CapEx is still required before organizations can leverage a private cloud. Costs. Purchasing and maintaining a private cloud to use alongside the public cloud can be more expensive than selecting a single deployment model. Skills. Deep technical skills are still required to be able to set up a private cloud. Ease of management. Organizations need to ensure there are clear guidelines to avoid confusion, complications or misuse.
Shared responsibility model The shared responsibility model ensures cloud workloads are run securely and in a well-managed way. IaaS requires the most user management of all the cloud services. The user is responsible for managing the operating systems, data, and applications. PaaS requires less user management. The cloud provider manages the operating systems, and the user is responsible for the applications and data they run and store. SaaS requires the least amount of management. The cloud provider is responsible for managing everything, and the end user just uses the software.
IaaS IaaS is the most basic category of cloud computing services. With IaaS, you rent IT infrastructure servers and virtual machines (VMs), storage, networks, and operating systems from a cloud provider on a pay-as-you-go basis. It's an instant computing infrastructure, provisioned and managed over the internet. IaaS characteristics Upfront costs. IaaS has no upfront costs. Users pay only for what they consume. User ownership. The user is responsible for the purchase, installation, configuration, and management of their own software operating systems, middleware, and applications. Cloud provider ownership. The cloud provider is responsible for ensuring that the underlying cloud infrastructure (such as virtual machines, storage and networking) is available for the user. Common usage scenarios: Migrating workloads. Typically, IaaS facilities are managed in a similar way as on-premises infrastructure and provide an easy migration path for moving existing applications to the cloud. Test and development. Teams can quickly set up and dismantle test and development environments, bringing new applications to market faster. IaaS makes scaling development testing environments up and down fast and economical. Website hosting. Running websites using IaaS can be less expensive than traditional web hosting. Storage, backup, and recovery. Organizations avoid the capital outlay and complexity of storage management, which typically requires a skilled staff to manage data and meet legal and compliance requirements. IaaS is useful for managing unpredictable demand and steadily growing storage needs. It can also simplify the planning and management of backup and recovery systems. ✔️ When using IaaS, ensuring that a service is up and running is a shared responsibility: the cloud provider is responsible for ensuring the cloud infrastructure is functioning correctly; the cloud customer is responsible for ensuring the service they are using is configured correctly, is up to date, and is available to their customers.
PaaS PaaS provides an environment for building, testing, and deploying software applications. The goal of PaaS is to help create an application as quickly as possible without having to worry about managing the underlying infrastructure. For example, when deploying a web application using PaaS, you don't have to install an operating system, web server, or even system updates. PaaS is a complete development and deployment environment in the cloud, with resources that enable organizations to deliver everything from simple cloud-based apps to sophisticated cloud-enabled enterprise applications. Resources are purchased from a cloud service provider on a pay-as-you-go basis and accessed over a secure Internet connection. PaaS characteristics Upfront costs. There are no upfront costs, and users pay only for what they consume. User ownership. The user is responsible for the development of their own applications. However, they are not responsible for managing the server or infrastructure. This allows the user to focus on the application or workload they want to run. Cloud provider ownership. The cloud provider is responsible for operating system management, and network and service configuration. Cloud providers are typically responsible for everything apart from the application that a user wants to run. They provide a complete managed platform on which to run an application. Common usage scenarios Development framework. PaaS provides a framework that developers can build upon to develop or customize cloud-based applications. Similar to the way you create a Microsoft Excel macro, PaaS lets developers create applications using built-in software components. Cloud features such as scalability, high-availability, and multi-tenant capability are included, reducing the amount of coding that developers must do. Analytics or business intelligence. Tools provided as a service with PaaS allow organizations to analyze and mine their data. They can find insights and patterns, and predict outcomes to improve business decisions such as forecasting, product design, and investment returns.
SaaS SaaS is software that is centrally hosted and managed for the end customer. It allows users to connect to and use cloud-based apps over the internet. Common examples are email, calendars, and office tools such as Microsoft Office 365. SaaS is typically licensed through a monthly or annual subscription, and Office 365 is an example of SaaS software. SaaS characteristics Upfront costs. Users have no upfront costs; they pay a subscription, typically on a monthly or annual basis. User ownership. Users just use the application software; they are not responsible for any maintenance or management of that software. Cloud provider ownership. The cloud provider is responsible for the provision, management, and maintenance of the application software. Common usage scenarios Examples of Microsoft SaaS services include Office 365, Skype, and Microsoft Dynamics CRM Online.
Cloud service comparison There are both advantages and disadvantages for IaaS, PaaS, and SaaS cloud services. IaaS IaaS is the most flexible category of cloud services. It aims to give you complete control over the hardware that runs your application. Instead of buying hardware, with IaaS, you rent it. Advantages: No CapEx. Users have no upfront costs. Agility. Applications can be made accessible quickly, and deprovisioned whenever needed. Consumption-based model. Organizations pay only for what they use and operate under an OpEx model. Skills. No deep technical skills are required to deploy, use, and gain the benefits of a public cloud. Organizations can leverage the skills and expertise of the cloud provider to ensure workloads are secure, safe, and highly available. Cloud benefits. Organizations can leverage the skills and expertise of the cloud provider to ensure workloads are made secure and highly available. Flexibility: IaaS is the most flexible cloud service as you have control to configure and manage the hardware running your application. Disadvantages: Management. The shared responsibility model applies; the user manages and maintains the services they have provisioned, and the cloud provider manages and maintains the cloud infrastructure. PaaS PaaS provides the same benefits and considerations as IaaS, but there some additional benefits. Advantages: No CapEx. Users have no upfront costs. Agility. PaaS is more agile than IaaS, and users do not need to configure servers for running applications. Consumption-based model. Users pay only for what they use, and operate on an OpEx model. Skills. No deep technical skills are required to deploy, use, and gain the benefits of PaaS. Cloud benefits. Users can leverage the skills and expertise of the cloud provider to ensure their workloads are made secure and highly available. In addition, users can gain access to more cutting-edge development tools and toolsets. They then can apply these tools and toolsets across an application's lifecycle. Productivity. Users can focus on application development only, as all platform management is handled by the cloud provider. Working with distributed teams as services is easier, as the platform is accessed over the internet and can be made globally available more easily. Disadvantages: Platform limitations. There may be some limitations to a cloud platform that could affect how an application runs. Any limitations should be taken into consideration when considering which PaaS platform is best suited for a workload. SaaS SaaS is software that is centrally hosted and managed for the end customer. It is usually based on an architecture where one version of the application is used for all customers, and licensed through a monthly or annual subscription SaaS provides the same benefits as IaaS, but again there some additional benefits. Advantages: No CapEx. Users don’t have any upfront costs. Agility. Users can provide staff with access to the latest software quickly and easily. Pay-as-you-go pricing model: Users pay for the software they use on a subscription model, typically monthly or yearly, regardless of how much they use the software. Flexibility. Users can access the same application data from anywhere. Disadvantages Software limitations. There may be some limitations to a software application that might affect how users work. Any limitations should be taken into consideration when considering which PaaS platform is best suited for a workload. ✔️ IaaS, PaaS, and SaaS each contain different levels of managed services. You may easily use a combination of these types of infrastructure. You could use Office 365 on your company’s computers (SaaS), and in Azure you could host your VMs (IaaS) and use Azure SQL Database (PaaS) to store your data. With the cloud’s flexibility, you can use any combination that provides you with the maximum result.
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