How it works
Cloud computing allows companies to outsource significant amounts of their IT work, accessing data and applications on – demand over the internet. By far the most common arrangement is called “public cloud,” where a third party like Amazon manages IT infrastructure that is shared among its clients. The public cloud lets clients quickly scale their access to computing up or down depending on their needs without managing infrastructure themselves.
“Private cloud” arrangements, by contrast, don’t share resources between clients. Sometimes third parties like Amazon host these private clouds. Other times, organizations host a private cloud themselves. Although in these cases they
aren’t outsourcing their IT, they still rely on the technology behind cloud computing: the ability to scale “horizontally” by balancing computing across more machines.
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