So, you’re thinking about the cloud. You hear terms like IaaS, PaaS, public, private, and hybrid, and it can get confusing fast. Understanding the different types of cloud computing is the first step to making a smart decision for your business. A guide like the current one offers a clear, simple breakdown of basic cloud computing models and will help you see the real difference between public private and hybrid clouds.
When people talk about the types of cloud computing, they’re usually talking about two main things:
- Cloud deployment models: this is where the cloud infrastructure lives and who has access to it.
- Cloud service models: this is how you use the cloud and what level of service the provider manages for you.
Knowing the difference is key to building a cloud deployment strategy guide that fits your business goals, budget, and security needs.
Cloud deployment models: where your cloud lives
The first big choice you’ll make is about the deployment model. A choice like this is all about where your servers and infrastructure are located and how they’re managed. The main cloud deployment models are public, private, and hybrid.
Public cloud
A public cloud is the most common type of cloud computing deployment. The cloud infrastructure is owned and operated by a third-party cloud service provider, like Microsoft Azure, who delivers computing resources over the internet.
- How a public cloud works: you share the same hardware, storage, and network devices with other organizations, or “tenants.” a good analogy is living in a large apartment building; you have your own secure apartment, but you share the building’s overall infrastructure.
- Pros:
- lower costs: you get huge cloud computing cost savings because you don’t have to buy and manage your own hardware. you pay as you go for what you use.
- high scalability: you have access to massive cloud scalability benefits. you can scale resources up or down almost instantly to meet demand.
- no maintenance: the provider is responsible for all hardware maintenance and management.
- Cons:
- less control: you have less control over the underlying infrastructure compared to a private cloud.
- perceived security risks: while providers offer robust security, some organizations have concerns about sharing resources, especially for highly sensitive data.
Private cloud
A private cloud consists of computing resources used exclusively by one business or organization. The private cloud can be physically located at your company’s on-site data center, or a third-party service provider can host a private cloud.
- how a private cloud works: the infrastructure and services are maintained on a private network, and the hardware and software are dedicated solely to your organization.
- Pros:
- more control and security: you have complete control over the infrastructure and security, which is crucial for meeting strict cloud compliance requirements or for industries like financial services cloud and healthcare cloud computing.
- customization: you can customize the environment to meet your specific business needs.
- Cons:
- higher costs: you are responsible for the costs of purchasing and maintaining the hardware and software.
- more responsibility: your IT team is responsible for managing the cloud, so you need the right expertise.
Hybrid cloud
A hybrid cloud is a combination of public and private clouds, bound together by technology that allows data and applications to be shared between them.
- How a hybrid cloud works: a hybrid cloud migration strategy allows you to keep sensitive data or critical applications on a private cloud while using the public cloud for less-sensitive workloads, for handling peak demand (“cloud bursting”), or for cloud disaster recovery.
- Pros:
- flexibility: you get the best of both worlds—the security and control of a private cloud with the scalability and cost-effectiveness of a public cloud.
- control: you can maintain a private infrastructure for sensitive assets while still taking advantage of public cloud resources.
- Cons:
- complexity: managing and securing two different types of environments can be complex. This is where hybrid cloud consulting becomes incredibly valuable. If you’re facing such complexity, let’s discuss your cloud architecture and migration needs.
Other models: multi-cloud and community cloud
You might also hear about two other models:
- multi-cloud: a multi-cloud setup is when an organization uses more than one public cloud service from different providers (e.g., using some services from Microsoft Azure and others from another provider). A multi-cloud vs hybrid cloud strategy is a common discussion; multi-cloud is about using multiple public clouds, while hybrid is about mixing public and private.
- Community cloud: a community cloud is a collaborative effort where infrastructure is shared between several organizations from a specific community with common concerns (security, compliance, jurisdiction, etc.), whether managed internally or by a third-party. A setup like this is often seen in government cloud deployment or specific research communities.
Cloud service models: how you use the cloud
The second way to categorize the types of cloud computing is by the service model. A service model defines the level of control you have and what the cloud provider manages for you. The three main models are IaaS, PaaS, and SaaS.
Infrastructure as a service (IaaS)
Infrastructure as a service (IaaS) is the most basic category of cloud computing services. with IaaS, you rent IT infrastructure—servers and virtual machines (VMs), storage, networks, operating systems—from a cloud provider on a pay-as-you-go basis.
- what you manage: you manage the applications, data, runtime, middleware, and operating system.
- what the provider manages: the provider manages the virtualization, servers, storage, and networking.
- when to use IaaS: IaaS is great for enterprise cloud migration when you want to do a “lift and shift” of your existing infrastructure, for test and development environments, or when you need complete control over your applications. Microsoft Azure provides robust IaaS offerings.
Platform as a service (PaaS)
platform as a service (PaaS) provides an on-demand environment for developing, testing, delivering, and managing software applications. PaaS is designed to make creating web or mobile apps easier for developers, without worrying about setting up or managing the underlying infrastructure.
- what you manage: you manage the applications and data you build on the platform.
- what the provider manages: the provider manages everything else—runtime, middleware, OS, virtualization, servers, storage, and networking.
- when to use PaaS: PaaS is ideal for developing cloud native applications, when you want to streamline development workflows, or when multiple developers are working on the same project. Azure App Service is a leading PaaS solution.
Software as a service (SaaS)
software as a service (SaaS) is a method for delivering software applications over the internet, on a subscription basis. with SaaS, cloud providers host and manage the software application and underlying infrastructure and handle any maintenance, like software upgrades and security patching.
- what you manage: essentially nothing. You just use the software.
- what the provider manages: the provider manages everything.
- when to use SaaS: SaaS is the model most people are familiar with. Microsoft 365, Salesforce, and Dropbox are all examples of SaaS. A model like this is a great option for business applications like email, collaboration tools, and CRM.
Serverless computing
You’ll also hear about serverless computing. A setup like this is an evolution of PaaS where the cloud provider automatically provisions and manages the infrastructure required to run code. you don’t have to worry about servers at all. you simply upload your code, and the code runs in response to events. A setup like this is great for tasks that run intermittently. Azure Functions is a popular serverless offering.
How to choose the right Cloud model for your business
Choosing the right mix of cloud deployment models and service models is a critical strategic decision. There’s no one-size-fits-all answer. The best approach depends on your specific business needs.
here’s how to start thinking about it:
- assess your workloads: look at your different applications and data. Do you have highly sensitive data that needs the control of a private cloud? Do you have applications with fluctuating demand that would benefit from the scalability of a public cloud? A thorough cloud migration assessment is the first step.
- consider your technical expertise: do you have an IT team with the skills to manage a private cloud or a complex hybrid environment? or would you benefit from letting a provider handle more of the management with PaaS or SaaS?
- evaluate your costs: compare the long-term costs of on-premises vs cloud computing. While the cloud can offer significant savings, a setup requires careful cost management. a cloud ROI calculator or a detailed financial analysis can help you build the business case.
- think about your long-term goals: your cloud strategy should support your broader digital transformation cloud objectives. Are you looking to innovate faster, expand into new markets, or improve operational efficiency? Your choice of cloud models should align with such goals.
This decision-making process can be complex. A situation like this is where enterprise cloud migration consulting can be invaluable. A partner like Advaiya can help you navigate such choices and design an enterprise cloud architecture design that’s right for you. If you need help with a cloud migration assessment, let’s discuss your cloud architecture and migration needs.
The Advaiya advantage: building your Cloud deployment strategy
Choosing and implementing the right cloud solution is a major undertaking. At Advaiya, we specialize in Microsoft cloud transformation services, helping enterprises navigate the complexities of the cloud and build strategies that deliver real business value.
Our approach is built on our deep expertise as a Microsoft Solutions Partner with specializations in Data & AI, Digital & App Innovation, Business Applications, and Infrastructure. We don’t just provide technology; we provide a strategic partnership.
- Comprehensive assessment: we start with a “comprehensive decomposition of business needs and technical execution steps.” A process like this means we take the time to understand your business before recommending a solution.
- Enterprise architecture focus: we design cloud solutions with a focus on platform best practices for extensibility and upgradability, ensuring your investment is future-proof. We help you get better value from existing technology investments.
- Hybrid and multi-cloud expertise: we know that for many enterprises, the future is hybrid. We offer expert hybrid cloud consulting to help you design, implement, and manage a seamless environment that combines the best of public and private clouds.
- Security and compliance: with ISO 27001 and ISO 9001 certifications, we have a deep commitment to quality and security. We can help you navigate complex cloud security best practices and compliance requirements.
A successful move to the cloud is a key part of an “accelerated digital transformation journey with minimum distraction and disruption.” A move provides the foundation for innovation, agility, and growth. Knowing the different types of cloud computing is the first step. The next is building a strategy and a roadmap to get there.
If you’re ready to explore how the different types of cloud computing can benefit your business, or if you’re looking for expert guidance on your cloud strategy, Advaiya is here to help.
ready to build your cloud future? let’s discuss your cloud architecture and migration needs.
Frequently asked questions
For most businesses, starting with software as a service (SaaS) for applications like email (Microsoft 365) is the easiest entry point. For infrastructure, a public cloud (like Microsoft Azure) using an infrastructure as a service (IaaS) model is often the most straightforward first step for migrating existing servers.
Yes, cloud strategies are not static. It’s common for businesses to start with one model (like IaaS) and then evolve, for example, by refactoring applications to use platform as a service (PaaS) to gain more efficiency. A good cloud deployment strategy guide should be flexible.
The cloud shifts the focus of IT teams from routine hardware maintenance to more strategic work. Roles evolve towards cloud infrastructure management, security, cost optimization, and helping business units apply cloud services for innovation.
Not necessarily. A multi-cloud vs hybrid cloud decision depends on your goals. multi-cloud can prevent vendor lock-in and let you use the “best” service from different providers. A hybrid cloud is more about blending your private infrastructure with a public cloud for control and scalability. Many enterprises end up using both.
One of the biggest mistakes is choosing a model based on hype rather than a thorough assessment of application needs, security requirements, and business goals. a “lift and shift” of everything to a public cloud without optimization is a common example that can lead to unexpectedly high costs.
