Module 1: Cloud Concepts

Cloud Service Models

Understand the three fundamental cloud service models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Learn when to use each model and how responsibilities are shared.

Crafted with care by Venu Vallepu

Service Models Overview

Cloud service models define how much control you have versus how much the cloud provider manages for you. Think of it like choosing between building your own house, renting a furnished apartment, or staying in a hotel - each offers different levels of control and convenience!

🏗️ The Cloud Service Stack

🔑 Responsibility Legend

👤 Customer Manages
You are responsible
☁️ Provider Manages
Cloud provider handles

🏠 On-Premises

Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking

👤 You manage everything

🖥️ IaaS

Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking

👤 You: OS, Apps
☁️ Provider: Infrastructure

⚙️ PaaS

Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking

👤 You: Apps, Data
☁️ Provider: Platform + Infra

💻 SaaS

Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking

👤 You: Your Data
☁️ Provider: Everything Else

👤 Customer Responsibility

You configure, manage, secure, and maintain these components

☁️ Provider Responsibility

Cloud provider handles installation, updates, security, and maintenance

🍕 Pizza Analogy: Cloud Service Models

🏠 On-Premises

Make pizza from scratch at home. Buy ingredients, make dough, add toppings, bake, clean up. You control everything but do all the work!

🖥️ IaaS

Take & bake pizza. Store provides oven and kitchen (infrastructure). You bring ingredients, make pizza, and clean up. Control the recipe!

⚙️ PaaS

Pizza delivery kit. Pre-made dough and sauce provided. You just add your toppings and bake. Focus on customization, not the base!

💻 SaaS

Ready-to-eat delivered pizza. Just order online and eat. No cooking, no cleanup. Convenient but limited customization options.

Infrastructure as a Service (IaaS)

IaaS provides virtualized computing infrastructure over the internet. It's like renting a fully equipped kitchen - you get the appliances, utilities, and space, but you're responsible for cooking, cleaning, and managing everything you do in that kitchen!

🔑 IaaS Key Characteristics

✅ What You Get:

  • Virtual machines: Computers running in the cloud
  • Storage: Virtual hard drives and file systems
  • Networking: Virtual networks, load balancers, firewalls
  • Scaling: Add/remove resources on demand
  • Choice: Pick your operating system and software

⚙️ Your Responsibilities:

  • Operating System: Install, update, secure, manage
  • Applications: Install, configure, maintain software
  • Data: Backup, secure, manage your information
  • Security: Configure firewalls, access controls
  • Scaling: Decide when to add/remove resources

🔧 Azure IaaS Services

Azure Virtual Machines

Rent computers in the cloud. Choose Windows/Linux, CPU, RAM, storage. You manage the OS and applications.

Azure Storage

Virtual hard drives and file storage. Blob storage for files, disk storage for VMs, highly available and scalable.

Azure Virtual Network

Private networks in the cloud. Connect VMs, control traffic flow, create subnets, configure firewalls.

🎯 When to Choose IaaS

✅ Perfect For:

  • Legacy applications: Move existing apps to cloud without changes
  • Custom software: Need specific OS or software configurations
  • Development/testing: Create and destroy environments quickly
  • Full control: Need complete control over the environment
  • Lift and shift: Move on-premises workloads to cloud
  • Compliance: Specific security or regulatory requirements

❌ Not Ideal For:

  • Simple websites: Too much complexity for basic needs
  • No IT skills: Requires technical knowledge to manage
  • Quick deployment: Takes time to set up and configure
  • Maintenance-free: You still need to manage and patch
  • Standard apps: If you just need email or office tools
  • Cost sensitivity: Can be expensive if not managed well

🏢 Real-World Scenario: E-commerce Migration

📋 The Challenge:

TechStore Inc. runs their e-commerce website on physical servers in their office basement. The servers are old, running out of space, and can't handle Black Friday traffic spikes. They need to move to the cloud but want to keep their existing custom inventory management system.

💡 IaaS Solution:
  • Azure VMs: Migrate existing servers to virtual machines
  • Same software: Keep custom inventory system unchanged
  • Auto-scaling: Add more VMs during traffic spikes
  • Backup: Automated backups to Azure Storage
  • Network: Secure connectivity between VMs
📊 Results:
Migration Time: 2 weeks
Black Friday Uptime: 99.99%
Peak Traffic Handling: 10x increase
Infrastructure Savings: 60% annually

Platform as a Service (PaaS)

PaaS provides a complete development and deployment environment in the cloud. It's like renting a fully equipped workshop where all the tools, workbenches, and utilities are ready - you just bring your creativity and focus on building your project!

🔑 PaaS Key Characteristics

✅ What You Get:

  • Development platform: Programming languages and frameworks
  • Database services: Managed databases without maintenance
  • Web hosting: Ready-to-use web application hosting
  • Auto-scaling: Automatic resource adjustment
  • DevOps tools: CI/CD, monitoring, testing integrated

⚙️ Your Responsibilities:

  • Application code: Write and maintain your application
  • Configuration: Set up app settings and environment
  • Data management: Structure and secure your data
  • User access: Manage who can use your application
  • App security: Secure your application logic and data

⚙️ Azure PaaS Services

Azure App Service

Host web apps, APIs, and mobile backends. Supports .NET, Java, Python, Node.js. Auto-scaling and CI/CD built-in.

Azure SQL Database

Managed SQL database. Automatic patching, backups, scaling. Focus on your data, not database administration.

Azure Functions

Serverless compute. Run code without managing servers. Pay only when your code runs. Event-driven execution.

👨‍💻 Developer Experience: IaaS vs PaaS

🖥️ IaaS Development

Week 1-2: Infrastructure Setup

Create VMs, install OS, configure networking, set up databases, install development tools

Week 3-4: Environment Configuration

Configure load balancers, set up monitoring, implement backup strategies, security hardening

Week 5+: Finally Start Coding

Begin actual application development after infrastructure is ready

60% infrastructure, 40% development

⚙️ PaaS Development

Day 1: Start Coding

Infrastructure ready instantly. Focus immediately on application logic and user experience

Week 1: Build & Deploy

Develop features, test, deploy with integrated CI/CD. Platform handles scaling automatically

Week 2+: Iterate & Improve

Add features, optimize performance, respond to user feedback rapidly

10% setup, 90% development

🎯 When to Choose PaaS

✅ Perfect For:

  • New applications: Building from scratch with modern frameworks
  • Web development: Websites, APIs, mobile app backends
  • Rapid development: Need to get to market quickly
  • Developer teams: Focus on coding, not infrastructure
  • Auto-scaling needs: Variable traffic patterns
  • DevOps integration: Continuous deployment pipelines

❌ Not Ideal For:

  • Legacy systems: Old applications that can't be modified
  • Custom OS needs: Specific operating system requirements
  • Full control required: Need to manage every aspect
  • Vendor lock-in concerns: Want to avoid platform dependencies
  • Complex networking: Intricate network configurations
  • Compliance restrictions: Strict regulatory requirements

🚀 Real-World Scenario: Startup Mobile App

📋 The Challenge:

FoodieFind is a startup building a restaurant discovery mobile app. They have 3 developers, limited budget, and need to launch in 3 months to secure their next funding round. They need a backend API, user authentication, restaurant database, and push notifications.

💡 PaaS Solution:
  • Azure App Service: Host REST API for mobile app
  • Azure SQL Database: Store restaurant and user data
  • Azure Functions: Handle image processing and notifications
  • Azure Active Directory: User authentication and management
  • Azure DevOps: Automated testing and deployment
📊 Results:
Development Time: 10 weeks
Infrastructure Setup: 2 days
Users at Launch: 10,000
Development Focus: 95% features

Software as a Service (SaaS)

SaaS provides complete, ready-to-use software applications delivered over the internet. It's like staying in a luxury hotel - everything is provided and maintained for you, you just need to check in and enjoy the service!

🔑 SaaS Key Characteristics

✅ What You Get:

  • Complete applications: Fully functional software ready to use
  • Web access: Use through browser, no installation needed
  • Automatic updates: Latest features and security patches
  • Multi-device access: Work from any device, anywhere
  • Collaboration tools: Share and work together seamlessly

⚙️ Your Responsibilities:

  • User accounts: Manage who has access to your organization
  • Data input: Enter and organize your business data
  • Configuration: Set up the software for your business needs
  • Training: Teach your team how to use the software
  • Data governance: Ensure proper use and protection of data

💻 Popular SaaS Applications

Office 365

Email, Word, Excel, PowerPoint in the cloud. Collaborate from anywhere.

Salesforce

Customer relationship management. Track sales, customers, support tickets.

Zoom

Video conferencing platform. Meetings, webinars, collaboration tools.

Google Workspace

Gmail, Docs, Sheets, Drive. Complete productivity suite in browser.

💽 Traditional Software vs ☁️ SaaS

💽 Traditional Software

🏪 Purchase & Install

Buy software licenses, install on each computer, manage updates manually

💾 Local Storage

Data stored on individual computers, difficult to share and collaborate

🔧 Maintenance Burden

IT team manages updates, backups, security, troubleshooting

💰 High Upfront Cost

Large initial investment, additional costs for upgrades and support

☁️ SaaS Software

🌐 Instant Access

Sign up and start using immediately, no installation required

☁️ Cloud Storage

Data in the cloud, accessible from anywhere, automatic collaboration

🔄 Automatic Updates

Provider handles all updates, security, backups, and maintenance

💳 Subscription Model

Pay monthly/yearly, predictable costs, easy to scale up or down

🎯 When to Choose SaaS

✅ Perfect For:

  • Standard business functions: Email, office productivity, CRM
  • Small to medium businesses: No IT staff to manage software
  • Collaboration needs: Teams working together remotely
  • Quick deployment: Need to start using software immediately
  • Predictable costs: Want to avoid large upfront investments
  • Always current: Need latest features and security updates

❌ Not Ideal For:

  • Highly specialized software: Industry-specific custom applications
  • Data sovereignty: Strict requirements to keep data on-premises
  • Heavy customization: Need to modify software significantly
  • Integration challenges: Complex integration with legacy systems
  • Internet dependency: Poor internet connectivity areas
  • Long-term costs: Subscription costs may exceed ownership over time

🏢 Real-World Scenario: Small Business Transformation

📋 The Challenge:

GreenThumb Landscaping has 25 employees using outdated desktop software for email, accounting, and project management. The owner spends $15,000 annually on IT support, software licenses, and hardware maintenance. Remote work is impossible, and collaboration is difficult.

💡 SaaS Solution:
  • Microsoft 365: Email, Office apps, file sharing
  • QuickBooks Online: Cloud-based accounting
  • Monday.com: Project management and scheduling
  • Zoom: Video meetings with clients
  • Dropbox Business: File storage and sharing
📊 Results:
IT Cost Reduction: 70%
Setup Time: 1 week
Remote Work Enabled: 100%
Project Efficiency: +40%

Service Model Comparison

📊 Quick Comparison Guide

Aspect IaaS PaaS SaaS
Control Level High Medium Low
Management Required High Medium Low
Time to Deploy Hours to Days Minutes to Hours Immediate
Scalability Manual Automatic Provider Managed
Technical Expertise High Medium Low
Customization Full Application Level Configuration Only
Cost Model Pay for Resources Pay for Platform Pay per User

🌳 Decision Tree: Which Service Model to Choose?

Choose IaaS When:

  • Migrating existing applications
  • Need full control over OS
  • Custom software requirements
  • Testing and development
  • Have IT expertise available

Choose PaaS When:

  • Building new applications
  • Want to focus on development
  • Need rapid deployment
  • Require auto-scaling
  • Team collaboration important

Choose SaaS When:

  • Need standard business apps
  • Want minimal maintenance
  • Quick deployment required
  • Limited IT resources
  • Remote collaboration needed

Session Summary

🎯 Key Takeaways from Session 3

📚 Service Models:

  • IaaS: Virtual machines, storage, networking (You manage OS+)
  • PaaS: Development platform, databases (You manage apps+)
  • SaaS: Complete applications (You manage data+)
  • Trade-off: More control = More responsibility

🏗️ Azure Examples:

  • IaaS: Azure Virtual Machines, Storage, Virtual Networks
  • PaaS: Azure App Service, SQL Database, Functions
  • SaaS: Office 365, Azure DevOps, Dynamics 365

🔧 Shared Responsibility:

  • Physical security: Always provider responsibility
  • Data classification: Always customer responsibility
  • Responsibility shifts: More to provider as you move up stack
  • Management: IaaS (high) → PaaS (medium) → SaaS (low)

💡 Key Decisions:

  • Control vs Convenience: Balance your needs
  • Time to market: SaaS fastest, IaaS slowest
  • Technical skills: Required decreases up the stack
  • Mix and match: Organizations often use multiple models

🚀 Ready for Next Steps?

Outstanding work! You now understand the three fundamental cloud service models and when to use each one. These models form the foundation of how organizations choose and implement cloud solutions.

AZ-900 Exam Tips

🎯 Remember for Exam:
  • • IaaS = Most control, most responsibility
  • • SaaS = Least control, least responsibility
  • • Physical security always provider's job
  • • Data classification always customer's job
  • • Azure VMs = IaaS, App Service = PaaS
💡 Common Exam Questions:
  • • Which service model for specific scenarios
  • • Responsibility matrix questions
  • • Azure service categorization (IaaS/PaaS/SaaS)
  • • When to choose each model
  • • Customer vs provider responsibilities