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Cloud Concepts

on this page · 5
  1. Service Models
  2. Deployment Models
  3. CapEx vs. OpEx
  4. Shared Responsibility Model
  5. Benefits of Cloud Services

Service Models

Model Full Name Description Azure Example
IaaS Infrastructure as a Service You manage OS, middleware, runtime, apps. Provider manages hardware. Azure Virtual Machines
PaaS Platform as a Service Provider manages OS and infrastructure. You manage apps and data. Azure App Service
SaaS Software as a Service Provider manages everything. You use the software. Microsoft 365

Key Exam Point: IaaS = you patch the OS. PaaS = Microsoft patches the OS. Azure Virtual Machines = IaaS. Azure App Service = PaaS. Microsoft 365 = SaaS.

Deployment Models

  • Public Cloud — Resources owned and operated by a third-party provider, shared across multiple customers. Pay-as-you-go pricing.
  • Private Cloud — Resources used exclusively by one organization. May be hosted on-premises or by a third party.
  • Hybrid Cloud — Combines public and private clouds, allowing data and apps to move between them.

CapEx vs. OpEx

CapEx (Capital Expenditure) OpEx (Operational Expenditure)
Definition Upfront investment in physical infrastructure Pay-as-you-go, ongoing costs
Example Buying servers, building a data center Paying monthly for cloud resources
Cloud model Traditional on-premises Cloud computing

Cloud computing shifts IT spending from CapEx to OpEx. The consumption-based model means you pay only for what you use — no upfront costs, no wasted capacity.

Shared Responsibility Model

Defines what Microsoft manages vs. what you (the customer) manage depending on the service type.

Responsibility On-Premises IaaS PaaS SaaS
Physical infrastructure Customer Microsoft Microsoft Microsoft
Network controls Customer Customer Microsoft Microsoft
Operating system Customer Customer Microsoft Microsoft
Applications Customer Customer Customer Microsoft
Data & identity Customer Customer Customer Customer

Benefits of Cloud Services

Benefit Definition
High Availability Systems remain operational even when components fail. Measured by SLAs (99.9%, 99.99%). Azure guarantees uptime via Availability Zones and redundant infrastructure.
Scalability Ability to handle increased load. Vertical scaling = add more power to existing VMs. Horizontal scaling = add more instances.
Elasticity Automatically scale resources up when demand increases, and back down when it decreases — never over-provision or under-provision.
Reliability Resilience through decentralized, distributed design. Deploy in multiple regions so a single failure doesn't take down everything.
Predictability Performance predictability: auto-scaling, load balancing. Cost predictability: forecast spending with Azure Cost Management and pricing tools.
Security Cloud providers offer tools and policies to meet security requirements. You choose your level of control.
Governance Audit and policy enforcement built in. Templates ensure resources meet corporate standards.
Manageability Manage resources via portal, CLI, APIs, or PowerShell. Auto-scaling, monitoring, and alerting included.