Module 1: Cloud Concepts

Introduction to Cloud Computing

Discover the fundamentals of cloud computing, understand NIST essential characteristics, explore deployment models, and learn how cloud transforms modern IT infrastructure.

Crafted with care by Venu Vallepu

Learning Objectives

After completing this session, you'll be able to:

Define cloud computing and understand its core principles
Identify the five NIST essential characteristics
Compare cloud deployment models
Distinguish on-premises vs cloud infrastructure
Understand key cloud concepts and benefits
Apply concepts to real-world scenarios

What is Cloud Computing?

Cloud computing is like having a powerful computer and all the software you need, but instead of owning it, you access it through the internet, just like streaming movies on Netflix instead of buying DVDs. It's the on-demand delivery of computing services over the internet with pay-for-what-you-use pricing.

🍽️ Restaurant Analogy

🏠 Traditional IT (Home Cooking)

You buy all ingredients, cook everything yourself, clean up, and handle maintenance. You own everything but do all the work.

☁️ Cloud Computing (Restaurant)

You order what you need, pay for what you consume, and someone else handles cooking, serving, and cleanup.

💰 Pay-as-you-go

Just like a restaurant bill - you only pay for what you order and consume, not for the kitchen or equipment.

⚖️ Traditional IT vs Cloud Computing

Traditional IT (On-premises)

High upfront costs:

Buy servers, software, and infrastructure before you use them

You manage everything:

Hardware maintenance, security updates, backup, disaster recovery

Limited scalability:

Takes weeks or months to add capacity

Cloud Computing

Pay-as-you-use:

No upfront costs, pay only for what you consume

Someone else manages:

Provider handles hardware, maintenance, security, updates

Instant scalability:

Scale up or down within minutes or seconds

📖 Simple Definition

Cloud computing is on-demand delivery of computing services (servers, storage, databases, networking, software) over the internet with pay-for-what-you-use pricing.

NIST Essential Characteristics

The National Institute of Standards and Technology (NIST) defines five essential characteristics that make something truly "cloud computing." Think of these as the checklist that determines if a service qualifies as genuine cloud computing.

1. On-demand Self-service

Get what you need, when you need it

🛍️ What it means

Users can automatically provision computing capabilities as needed without requiring human interaction with service providers.

🏪 Example

Like using an ATM - get money 24/7 without talking to a bank teller. In Azure, create a virtual machine instantly through the portal.

2. Broad Network Access

Access from anywhere with internet

🌐 What it means

Services are available over the network and accessed through standard mechanisms from various devices.

📱 Example

Like accessing Gmail from your phone, tablet, or computer. Azure can be accessed from any device through a web browser.

3. Resource Pooling

Shared resources for cost efficiency

🏊 What it means

Provider's computing resources are pooled and shared among multiple customers with dynamic assignment.

🚗 Example

Like Uber - many people share cars and drivers, making it cheaper for everyone. Azure's servers serve thousands of customers.

4. Rapid Elasticity

Scale up and down automatically

🎈 What it means

Resources can be automatically scaled up or down based on demand, often appearing unlimited.

🏟️ Example

Like a stadium that adds more seats when needed. E-commerce sites automatically get more servers during Black Friday.

5. Measured Service

Pay only for what you use

📊 What it means

Cloud systems automatically monitor and measure resource usage, providing transparency for both provider and consumer.

⚡ Example

Like your electricity bill - you pay based on how many kilowatt-hours you use. Azure bills you for exact consumption.

🎯 Remember the NIST Five!

Self-service

Get it yourself

Network Access

Access anywhere

Pooling

Shared resources

Elasticity

Scale automatically

Measured

Pay per use

Cloud Deployment Models

Cloud deployment models define where your cloud infrastructure is located and who can access it. Think of them as different types of neighborhoods where you can build your digital house.

🏘️ Housing Analogy

🏢 Public Cloud = Apartment

Shared building, managed by landlord, cost-effective, less privacy

🏠 Private Cloud = House

Your own house, complete control and privacy, more expensive

🏘️ Hybrid = House + Rental

Keep your house but rent vacation homes when needed

🏘️ Community = Gated

Shared with similar people, more exclusive than apartments

Public Cloud

Shared infrastructure owned by cloud provider

🏢 What it is

Cloud infrastructure operated by third-party providers (Microsoft Azure, Amazon AWS) and shared among multiple customers.

✅ Best for

  • • Startups and small businesses
  • • Development and testing
  • • Variable workloads
  • • Cost-sensitive projects

💰 Cost & Control

Lowest cost, least control - Share resources but get great savings and no maintenance.

Private Cloud

Dedicated infrastructure for one organization

🏠 What it is

Cloud infrastructure operated exclusively for a single organization, managed internally or by a third party.

✅ Best for

  • • Government agencies
  • • Healthcare organizations
  • • Financial institutions
  • • Large enterprises with compliance needs

💰 Cost & Control

Highest cost, most control - Complete control and security but premium prices.

Hybrid Cloud

Combination of public and private clouds

🔄 What it is

Combination of public and private clouds that remain distinct but are connected, allowing data sharing.

✅ Best for

  • • Mixed requirements organizations
  • • Gradual cloud migration
  • • Seasonal capacity needs
  • • Compliance + cost optimization

💰 Cost & Control

Balanced cost and control - Keep sensitive data private while using public cloud for savings.

Community Cloud

Shared among organizations with common requirements

👥 What it is

Cloud infrastructure shared by organizations with similar requirements (security, compliance, mission).

✅ Best for

  • • Government agencies (GovCloud)
  • • Healthcare consortiums
  • • Educational institutions
  • • Research organizations

💰 Cost & Control

Moderate cost and control - Share costs while meeting common compliance needs.

🤔 Which Cloud Model Should You Choose?

💰 If cost is your priority

Choose Public Cloud for lowest costs and no maintenance responsibilities.

🔒 If security/compliance is critical

Choose Private Cloud for maximum control and security.

⚖️ If you need balance

Choose Hybrid Cloud to optimize both cost and control.

On-premises vs Cloud

On-premises means having your IT infrastructure physically located at your organization's facilities - you own, operate, and maintain everything yourself. Let's see how this compares to cloud computing.

🚗 Car Analogy: Own vs Rent

🏠 On-premises = Owning a Car

You buy the car, handle all maintenance, repairs, insurance, parking. High upfront cost but complete control.

☁️ Cloud = Uber/Car Rental

Pay per use, someone else maintains the car, handles repairs, insurance. Lower upfront cost, less control.

🔍 Key Differences at a Glance

Aspect On-premises Cloud Computing
💰 Upfront Cost High (servers, software, facility) Low (pay-as-you-go)
🔧 Maintenance Your responsibility Provider handles it
📈 Scalability Slow (weeks/months) Instant (minutes/seconds)
🎛️ Control Complete control Limited control
🌍 Access On-site only Anywhere with internet
🛡️ Security You control everything Shared responsibility

Real-World Cloud Examples

You probably use cloud computing every day without realizing it! Let's look at familiar examples that demonstrate different cloud deployment models.

📺 Netflix - Public Cloud (AWS)

Netflix streams to 200+ million subscribers worldwide using Amazon Web Services public cloud.

🎯 Why Public Cloud?
  • • Global reach - serve users worldwide
  • • Elastic scaling for peak viewing
  • • Cost-effective for massive scale
💡 Cloud Benefits
  • • Auto-scale during popular shows
  • • Same service worldwide
  • • Pay-per-use cost model
📊 Scale Example

When Stranger Things releases, Netflix automatically spins up thousands more servers to handle traffic.

🏦 Banks - Private Cloud

Many banks use private clouds for core banking systems due to strict regulatory requirements.

🔒 Why Private?
  • • Financial regulations require control
  • • Customer data is highly sensitive
  • • Need predictable performance
🏗️ Architecture
  • • Core banking: Private cloud
  • • Customer portal: Public cloud
  • • Data analytics: Hybrid cloud
⚖️ Trade-offs

Higher costs but meets compliance and gives complete control over sensitive financial data.

🚀 Tech Startup - Hybrid Cloud

Growing companies use both private servers for sensitive data and public cloud for scaling.

🎯 Strategy
  • • Customer data: Private servers
  • • Web app: Public cloud
  • • Development: Public cloud
📈 Growth Pattern
  • • Start: 100% public cloud
  • • Grow: Hybrid approach
  • • Scale: Optimize per workload
💡 Best of Both

Keep sensitive IP secure while leveraging public cloud's cost benefits and global reach.

🤔 You Already Use Cloud Computing Daily!

Gmail

Email in the cloud

OneDrive

File storage

Spotify

Music streaming

Instagram

Photo sharing

Session Summary

🎯 Key Takeaways from Session 1

☁️ Cloud Computing Definition:

  • On-demand delivery of computing services over the internet
  • Pay-for-what-you-use pricing model

📋 NIST Five Characteristics:

  • On-demand self-service: Get resources automatically
  • Broad network access: Available over network
  • Resource pooling: Shared among customers
  • Rapid elasticity: Scale automatically
  • Measured service: Monitor and bill usage

🏗️ Deployment Models:

  • Public Cloud: Shared infrastructure, lowest cost
  • Private Cloud: Dedicated infrastructure, most control
  • Hybrid Cloud: Mix of public and private
  • Community Cloud: Shared among similar organizations

🔧 Key Benefits:

  • Lower upfront costs
  • Instant scalability
  • Global accessibility

🚀 Ready for Next Steps?

Excellent! You now understand cloud computing fundamentals, NIST characteristics, and deployment models. You're ready to explore cloud benefits and service models.