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These materials are the copyright of John Wiley & Sons, Inc. and any<br />

dissemination, distribution, or unauthorized use is strictly prohibited.<br />

Chapter 1: Setting the Fundamentals of the Cloud 11<br />

What enables the cloud provider economies of scale is a concept<br />

known as multi-tenancy, which means that different companies<br />

share all or some of the same underlying resources. One of the<br />

benefits of this platform is that on-boarding a new customer can<br />

be done in a cost-effective manner because the cloud doesn’t<br />

provide a fixed set of resources just for that customer.<br />

Of course e-mail isn’t the only service to be put into the cloud.<br />

Other examples include video services, human resources, and<br />

backup services — to name a few.<br />

Also, development, testing or deployment organizations may<br />

have periods of high demand followed by less active periods.<br />

In addition, these teams are often located across geographies.<br />

Having an optimized platform that can be scaled up or down<br />

based on demand is a logical economic model for many organizations.<br />

Running application development and testing in<br />

the cloud can be less expensive than buying and configuring<br />

servers. As long as the provider is trustworthy, companies are<br />

seeing the benefit of using this type of public cloud service.<br />

In the public cloud model, the end-user really doesn’t have to<br />

know anything about the underlying technology. The cloud<br />

provider is in charge of all the development and maintenance<br />

of the environment. If a problem exists, the cloud provider is<br />

responsible for fixing the problem.<br />

What’s a private cloud<br />

In some situations, a public platform (see the preceding section)<br />

may not be the most appropriate environment for an<br />

organization. The company may be part of a highly-regulated<br />

industry and needs to prove that its IT can comply with regulations.<br />

While companies like the freedom of the public cloud,<br />

they may need more direct control for a particular portion of<br />

their IT environments. The company may need a specialized<br />

custom security service and already have hardware and a<br />

hosting facility they want to amortize ownership of their infrastructure<br />

and solution, or, more simply utilize data and applications<br />

within an existing datacenter. Those companies could<br />

adopt what’s called a private cloud.<br />

What makes a private cloud different than a data center that<br />

includes some server virtualization Take a look at several<br />

key differences:

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