Cloud Computing Models
Cloud computing models define how services are delivered and who manages the underlying infrastructure. There are three primary cloud service models, each serving different business and technical needs

Table of Contents
Introduction
Cloud computing can be described as a virtual service in which infrastructure, software, and applications are stored and can be accessed remotely without physical assets. Cloud computing is a network of servers, also called the Meta Internet. Instead of owning and managing physical hardware, users can now access computing services over the internet on a pay-as-you-go basis.
Cloud computing has gained popularity over traditional backend databases for several reasons, including easier maintenance and greater accessibility compared to conventional data centers.
There are two primary types of cloud computing models: the Deployment Model and the Service Model.
Service Models:
The Cloud services are organized into different service models, each offering varying levels of control, flexibility, and management.
The main service models in cloud computing are:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
These models represent different layers of abstraction in cloud computing. The lower the layer, the more control the user has over the environment, but with more responsibility. As we move higher in the model, the cloud provider handles more of the management, allowing users to focus on building and using applications instead of managing the infrastructure.
Each model serves different needs:
- IaaS offers maximum control over computing resources.
- PaaS provides a ready-to-use environment for developers.
- SaaS delivers fully functional applications to end-users.
Infrastructure as a Service (IaaS):
IaaS is a business model that delivers IT infrastructure like compute, storage, and network resources on a pay-as-you-go basis over the internet. IaaS provides on-demand access to computing resources such as servers, storage, networking, and virtualization via the cloud. The service provider owns and maintains the infrastructure, while users manage the operating systems, middleware, data, and applications.
IaaS customers typically have the option to choose between virtual machines (VMs) hosted on shared physical hardware, managed by the cloud provider using virtualization, or bare metal servers that run on dedicated, unshared physical hardware. Customers can provision, configure, and operate these servers and resources either through a graphical dashboard or programmatically via application programming interfaces (APIs).
One of the primary advantages of IaaS is its scalability and cost-effectiveness. It enables businesses to scale resources according to demand while eliminating the need to maintain physical data centers. For example, an e-commerce company experiencing seasonal spikes in traffic can scale its compute capacity during busy times without investing in hardware that would sit idle the rest of the year.
IaaS helps overcome the limitations of traditional on-premises infrastructure, which often requires a heavy up-front investment. To meet this need, IaaS vendors maintain highly secure data centers with large volumes of hardware. Users gain flexible and secure access to practically unlimited computing resources, helping them meet business, legal, and compliance requirements.
Examples:
- Amazon EC2 (Elastic Compute Cloud)
- Google Compute Engine
- Microsoft Azure Virtual Machines
Used in:
- Hosting websites or applications.
- Data backup and recovery.
- Test and development environments.
Advantages of IaaS:
- High flexibility and scalability.
- Pay-as-you-use model.
- Suitable for tech-savvy users who want control.
Platform as a Service (PaaS):
Platform as a Service (PaaS) is a type of cloud service that gives developers the tools they need to build and launch applications online without having to set up any hardware or software themselves. It offers a cloud-based platform for developing, running, and managing applications. The cloud service provider hosts, manages, and maintains all the hardware and software included in the platform, such as servers, storage, networking, operating systems, middleware, runtimes, and development tools.
With PaaS, everything runs on the provider’s server and is accessed through a web browser. Developers can focus entirely on writing and managing the application, while the provider takes care of the underlying infrastructure, including updates, security, and backups. This model allows for faster development cycles, as teams no longer need to worry about server configurations or maintenance tasks.
Users typically access PaaS through a graphical user interface (GUI), which enables development or DevOps teams to collaborate across the entire application lifecycle. This includes coding, integration, testing, delivery, deployment, and gathering feedback. By streamlining these processes, PaaS allows teams to be more productive and agile in their development efforts.
PaaS also includes a category known as Integration Platform as a Service (iPaaS), which allows businesses to integrate data from multiple applications into one cloud-based solution. This is especially useful for organizations with a variety of applications handling different business processes. iPaaS simplifies complex data integration so that even nontechnical users can centralize and analyze data without needing to write complex code or use additional middleware technologies.
Examples:
- Google App Engine
- AWS Beanstalk
- Azure Service
- Heroku
Used in:
- Developing Web and Mobile Apps: easy to build and host websites and mobile apps.
- Application Programming Interface (APIs): Create and manage APIs.
- Building Apps: Developers can quickly create and deploy apps without worrying about servers.
- Data Storage: Use cloud databases to store and manage data easily.
Advantages of PaaS:
- Faster development and deployment.
- No need to manage servers or OS.
- Built-in scalability and security.
Software as a Service (SaaS):
Software as a Service (SaaS) is a cloud-based software model that delivers fully functional applications over the internet. These applications are accessible via web browsers or APIs and are hosted and managed entirely by the SaaS provider. This means users can access and use the software without needing to install or maintain it on their systems. Everything from infrastructure and application software to data storage is handled by the vendor, making it a highly convenient and hassle-free solution.
SaaS applications operate on a subscription-based model, where users pay monthly or annually. This eliminates the need for large upfront investments typically associated with traditional software. Since everything is managed by the vendor, including updates, bug fixes, and security patches, businesses benefit from consistent performance and reduced operational overhead. Users can also scale services up or down as needed, adding more users or storage on demand.
This model supports rapid deployment, allowing software to be used immediately after subscription. It is ideal for organizations embracing remote or hybrid work environments, as SaaS can be accessed from any internet-enabled device. Unlike traditional software that runs only on installed workstations, SaaS promotes flexibility and mobility. Popular SaaS applications used daily include email services, cloud storage (like Dropbox), and social media platforms.
SaaS is also widely used in the business world. One of the key benefits of SaaS is its reliability and scalability. Vendors ensure high availability, often guaranteeing 99% or more uptime, and handle cybersecurity and disaster recovery. SaaS also offers automatic updates, integration with third-party tools, and access to real-time data and analytics. For students and businesses alike, SaaS simplifies software usage while offering robust performance and flexibility.
Examples:
- Google Workspace
- Office365
- Salesforce
- Dropbox
Used in:
- Email services
- Customer Relationship Management (CRM): Manage leads, sales, and customer data.
- E-commerce platforms: Create and manage online stores using Shopify or BigCommerce.
Advantages of SaaS:
- No installation or maintenance.
- Available on-demand from any device.
- Ideal for end-users and non-technical customers.
Conclusion of Service Models:
Understanding cloud service models—IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service)—is essential for selecting the right level of abstraction and control in cloud computing. These models represent different layers, where IaaS provides the most control over infrastructure, PaaS simplifies development by managing the underlying platform, and SaaS offers complete solutions to end users with minimal management.
Each model serves different needs: IaaS is ideal for system administrators and developers who require flexible infrastructure; PaaS benefits developers focused on building and deploying applications without worrying about hardware or OS; and SaaS is perfect for end-users seeking ready-to-use applications like email or CRM systems.
Choosing the appropriate service model depends on factors such as control, scalability, development requirements, cost, and user expertise. Organizations often adopt a combination of service models to balance operational efficiency with innovation. As cloud technologies evolve, understanding and leveraging the right service model helps businesses optimize resources, reduce complexity, and accelerate digital transformation.
Deployment Models:
Deployment models of cloud computing determine ownership, access control, management responsibilities, and data storage locations. These deployment models represent different ways of accessing and managing cloud infrastructure based on who owns and controls the resources.
Each model offers varying levels of control, flexibility, cost, and security. A public cloud provides easy access with low costs but less control, while a private cloud offers maximum control and security but requires higher investment and management. A hybrid cloud blends the benefits of both, offering flexibility with added complexity. The right choice depends on an organization’s specific needs for scalability, security, compliance, and budget.
Public Cloud:
The public cloud makes it possible for anybody to access systems and services over the internet through third-party providers. The cloud infrastructure services are provided to the general public or major industry groups and are owned by the entity that delivers the cloud services, not by the consumer.
Users can purchase virtualized compute, storage, and networking services on a pay-as-you-go basis, paying only for the resources they consume, such as storage, CPU cycles, or bandwidth. This form of cloud hosting allows customers to easily access systems and services like storage, backup, and retrieval, which may be free, subscription-based, or charged per user. Examples of popular public clouds include Google App Engine, Amazon AWS, Microsoft Azure, IBM Cloud, Oracle Cloud, Alibaba Cloud, and Google Cloud Platform (GCP).
Public clouds help businesses reduce the cost of managing and maintaining on-premises infrastructure while offering scalable resources such as RAM and flexible bandwidth. The service providers handle the maintenance, physical security, and infrastructure management, allowing users to focus on their applications. Infrastructure can be managed primarily using a web browser, APIs, command line, or infrastructure-as-code tools like Terraform.
This model is ideal for businesses that require quick access to computing resources without large upfront costs, with the ability to scale resources dynamically to meet demand. However, since it is open to many users, the public cloud may be less secure and offer limited customization.
Advantages of the Public Cloud Model:
- Minimal Investment: Because it is a pay-per-use service, there is no substantial upfront fee, making it excellent for enterprises that require immediate access to resources.
- No Setup Cost: The entire infrastructure is fully subsidized by the cloud service providers, thus there is no need to set up any hardware.
- Infrastructure Management is Not Required: Using the public cloud does not necessitate infrastructure management.
- No Maintenance: The maintenance work is done by the service provider (not users).
- Dynamic Scalability: To fulfill your company’s needs, on-demand resources are accessible.
- High Flexibility: Easily scale resources to meet fluctuating demands.
- High Reliability: Providers ensure reliable service with minimal downtime.
- Low Maintenance Costs: Since providers handle infrastructure, maintenance expenses are reduced.
- Cost-Effective: Operates on a pay-as-you-go model, reducing infrastructure expenses.
Disadvantages of the Public Cloud Model:
- Less Secure: Public cloud is less secure as resources are public, so there is no guarantee of high-level security.
- Low Customization: It is accessed by many public users, so it can’t be customized according to personal requirements.
- Data Security Concerns: Storing data with a third-party provider raises issues of control and privacy, especially for strictly regulated businesses.
- Limited Transparency: Users may lack visibility into the underlying infrastructure, complicating monitoring and management.
Private Cloud:
The private cloud deployment model is a one-on-one environment dedicated to a single user or organization. It is also called the “internal cloud” because it allows access to systems and services within a specific organization, protected by strong firewalls and managed by the company’s IT team. The infrastructure is fully owned and controlled by the organization, which gives greater flexibility and control over cloud resources.
Private clouds are usually hosted in the company’s own data center or dedicated rack space within a data center. This setup supports legacy applications that cannot move to the public cloud and helps organizations meet strict data security, compliance, and governance requirements.
Although a private cloud requires a significant upfront investment and ongoing management costs, it offers lower total cost of ownership (TCO) over time by delivering more computing power with less physical hardware. It also provides on-demand data availability, ensuring reliability and support for mission-critical workloads. Private clouds combine the advantages of public clouds like self-service, scalability, and flexibility, but with enhanced security and customization. Since the organization manages the entire infrastructure, it may require more skilled IT staff and higher management overhead.
Examples of private cloud solutions include VMware vCloud Suite, OpenStack, Cisco Secure Cloud, and Dell Cloud Solutions.
Advantages of the Private Cloud Model:
- Better Control: You are the sole owner of the property, gaining complete command over service integration, IT operations, policies, and user behaviour.
- Data Security and Privacy: Suitable for storing corporate information accessible only by authorized staff. Improved access and security by segmenting resources within the infrastructure.
- Customization: Allows a company to tailor its solution to meet specific needs.
- Increased Security and Control: Sensitive data remains within private infrastructure protected by company firewalls.
- Compliance Ready: Meets specific regulatory and operational standards.
- Dedicated Hardware May Improve Performance
- High Flexibility
Disadvantages of the Private Cloud Model:
- Less Scalable: Private clouds have limited scalability due to fewer clients.
- Costly: Private clouds are more expensive as they provide personalized facilities.
- High Cost: Requires substantial capital expenditure for hardware and ongoing operational costs.
- Higher Management Overhead: Needs more skilled professionals to manage operations effectively.
- Restricted Accessibility: Available only within specific areas or organizations.
Hybrid Cloud:
A hybrid cloud combines public cloud and private cloud environments by allowing data and applications to be shared between them. This helps businesses seamlessly scale services back and forth between their infrastructure and the public cloud. The hybrid model combines both public and private cloud deployment models, giving a single cloud infrastructure that is aimed at increasing flexibility and deployment options for the business.
For example, applications with strict governance and data security requirements may be hosted in the business private cloud, whereas applications without these concerns, which need to be scaled on demand, could be hosted in the public cloud. The benefits of both the public and private cloud can be realized, as well as some of the disadvantages, such as increased management overhead and the initial challenge of setting up a hybrid infrastructure. Once realized, applications can be moved between infrastructure hosted in the public and private clouds, increasing flexibility and fault tolerance.
Typically, businesses may have some presence on-premise, and utilizing this hardware until it has reached end-of-life in the private cloud will likely be an attractive option if the business already owns the hardware. In the hybrid model, this can be used to form part of the private cloud. Most businesses strive to alleviate the burden on the existing infrastructure, migrating to the public cloud where possible, and effectively utilizing the hybrid deployment model during the migration period.
Hybrid clouds combine the features of “public” and “private” clouds. They offer flexibility and scalability while maintaining control over sensitive data. This approach is especially beneficial when computing resource demands fluctuate. Organizations can scale their private infrastructure using the public cloud to manage overflow. Using a hybrid model, companies avoid purchasing and maintaining resources that may remain underutilized. Instead, they pay only for the extra resources consumed during peak periods. This model is cost-efficient and provides security and control for private clouds.
Examples: AWS Outposts, Azure Stack, Google Anthos
Advantages of the Hybrid Cloud Model:
- Improved scalability
- High control
- Highly scalable
- High fault tolerance
- Cost-effective
- Cost-Efficiency: Combines lower-cost public resources with private security
- Flexibility: Handles fluctuating workloads effectively
Disadvantages of the Hybrid Cloud Model:
- Setup challenges
- High management overhead
- Complex Management: Integrating public and private clouds can be challenging
- Security Risks: Managing distinct access levels across environments requires expertise
Choosing the Right Cloud Deployment Model:
Each organization will have its requirements when making the shift or starting its journey to the cloud. As of now, there’s no one-size-fits-all approach for picking a cloud deployment model. We will always consider the best cloud deployment model as per our requirements.
To avoid costly and time-consuming bad decisions, it is critical to understand the organizational needs before embarking on the journey to the cloud. Making good decisions in the planning stage can help your business accelerate growth, meet business goals, and stay competitive.
Here are some key factors to consider before choosing the best deployment model:
- Cost: Cost is an important factor as it tells how much you want to pay for these things.
- Scalability: It shows the current activity status and how much we can scale it.
- Easy to Use: It depends on how much your resources are trained and how easily you can manage these models.
- Compliance: It refers to the laws and regulations that impact the implementation of the model.
- Privacy: It covers what data you gather and how it’s handled in the model.
Each model has some advantages and some disadvantages, and the selection of the best is only done based on your requirements. If your requirement changes, you can switch to any other model.
Most businesses today already have some presence in the cloud, such as using SaaS offerings like Office 365 or Gmail, or IaaS platforms like AWS or Azure. The COVID-19 pandemic further pushed organizations toward cloud adoption, where choosing the right deployment model played a big role, often with speed being a top priority.
Conclusion of Deployment Models:
Choosing the right cloud deployment model is crucial for aligning IT infrastructure with business goals. Each model—Public, Private, and Hybrid Cloud—has its advantages and disadvantages, offering varying degrees of control, scalability, cost-efficiency, and security.
The public cloud is ideal for organizations seeking minimal investment and high scalability, whereas the private cloud offers enhanced security and control, making it suitable for industries with strict compliance needs. The hybrid cloud combines both, allowing businesses to enjoy flexibility and cost savings while keeping sensitive operations secure.
There is no one-size-fits-all solution—the right deployment model depends entirely on an organization’s specific needs, such as budget, regulatory requirements, data sensitivity, and scalability expectations. Organizations must evaluate factors like cost, ease of use, privacy, compliance, and scalability before deciding. As needs evolve, companies may even shift from one model to another or adopt a combination to balance performance and security. Ultimately, a well-informed decision in the early stages can lead to greater agility, lower costs, and sustained growth in the cloud journey.