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5 min read·Lesson 1 of 10

What is Cloud Computing?

Understand the definition of cloud computing, its six advantages, and the three primary service models that AWS is built on.

Cloud computing changed how organisations build and run software. Instead of buying servers and running a data centre, you rent computing capacity from a provider like AWS on demand. This shift has made it faster and cheaper to launch new applications — and it's why cloud skills are in such high demand.

The NIST Definition

The widely used definition from the National Institute of Standards and Technology (NIST): Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort.

Simpler: you use computing power over the internet, pay for what you consume, and don't manage physical hardware.

The Six Advantages of Cloud Computing (AWS Framework)

  1. Trade capital expense for variable expense. Instead of buying hardware upfront (CapEx), you pay only for what you use (OpEx).
  2. Benefit from massive economies of scale. AWS serves millions of customers, so it achieves far lower costs per unit than any single organisation could alone.
  3. Stop guessing capacity. Scale up or down based on actual demand — no over-provisioning, no under-provisioning.
  4. Increase speed and agility. Launch new resources in minutes, not weeks. Experiment faster, fail cheaper.
  5. Stop spending money maintaining data centres. Focus on your application, not on racking servers and replacing failed hard drives.
  6. Go global in minutes. Deploy your application to multiple regions worldwide with a few clicks.

Cloud Service Models

IaaS — Infrastructure as a Service

The cloud provider manages physical infrastructure (servers, networking, storage). You manage the operating system, middleware, and applications.

Example: Amazon EC2 (virtual machines). You choose the instance type; AWS runs the physical hardware.

PaaS — Platform as a Service

The cloud provider manages the infrastructure and the operating system. You manage only your application and data.

Example: AWS Elastic Beanstalk, AWS App Runner. Deploy your app; AWS handles servers, OS patches, load balancing.

SaaS — Software as a Service

The provider manages everything — infrastructure, platform, and application. You just use the software.

Example: Amazon WorkMail, Salesforce, Gmail. No infrastructure management at all.

ModelYou manageProvider manages
IaaSOS, apps, dataHardware, virtualisation, networking
PaaSApps, dataOS, runtime, hardware
SaaSData (usage)Everything

Cloud Deployment Models

  • Public cloud: Resources are owned and operated by a third-party provider (AWS, Azure, GCP) and shared across customers. Most companies use public cloud for new workloads.
  • Private cloud: Cloud infrastructure operated exclusively for one organisation, on-premises or hosted. Offers more control but higher cost.
  • Hybrid cloud: A mix of public and private cloud, connected with data and applications portability between them. Common for regulated industries.
  • Multi-cloud: Using services from multiple public cloud providers (e.g., AWS + Azure). Reduces vendor lock-in.

Key Cloud Concepts for the Exam

  • Elasticity: Automatically scale resources up or down based on demand.
  • Scalability: The ability to handle increased workload, either by scaling up (bigger instance) or scaling out (more instances).
  • High Availability: Design systems to remain operational despite component failures, typically across multiple Availability Zones.
  • Fault Tolerance: The system continues operating correctly even when one or more components fail.
  • Agility: The speed at which cloud resources can be provisioned and decommissioned.

In the next lesson, you'll learn how AWS organises its global infrastructure into Regions, Availability Zones, and Edge Locations.

Key Takeaways

  • Cloud computing is on-demand delivery of IT resources over the internet with pay-as-you-go pricing.
  • The six advantages include trading capital expense for variable expense, massive economies of scale, and global reach.
  • IaaS, PaaS, and SaaS are the three cloud service models — AWS offers all three.
  • Public, private, and hybrid cloud are the main deployment models.
  • Elasticity, agility, and fault tolerance are key cloud benefits for the exam.

Test your knowledge

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