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Cloud Deployment Models: Types, Uses & Why They Matter

By Rohan Vats

Updated on Jan 16, 2025 | 10 min read | 11.0k views

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Cloud deployment models decide how businesses store and manage their data. They affect how much control a company has over its data, how secure it is, and how easily the system can grow with the business.

Did you know?
Over 90% of companies use cloud services today. Businesses like Amazon, Swiggy, and Zomato rely on different cloud models to handle data, run apps smoothly, and stay secure while serving millions of users daily.

What Are Cloud Deployment Models in Cloud Computing?

A cloud deployment model is the way a business sets up and uses cloud services to store data, run apps, and manage resources. Each model offers a different balance of control, security, and cost.

The most common models include:

  • Public Cloud: Shared resources with multiple users.
  • Private Cloud: Dedicated resources for one business.
  • Hybrid Cloud: A mix of both, combining flexibility and control.

Why Cloud Deployment Models Matter?

  • Scale Easily: Add or reduce resources when needed.
  • Stay Secure: Control who accesses data and how it’s stored.
  • Save Costs: Pay only for what you use.

Keep reading to explore each cloud model in detail and find out which suits your business best.

Types of Cloud Deployment Models in Cloud Computing 

Cloud deployment models describe how a business sets up its cloud resources for data storage, applications, and services. Each model offers different levels of control, security, and flexibility. 

Did you know?

  • 45% of enterprises already rely on hybrid cloud setups for better flexibility.
  • The global cloud market is projected to grow by 17% annually by the end of this year.

Let's break down the main types:

1. Public Cloud Deployment Model

The public cloud deployment model uses shared servers and resources managed by third-party providers like AWS, Microsoft Azure, and Google Cloud. Multiple businesses share the same infrastructure, making it cost-effective and easy to access.

Use Cases:

  • Hosting websites and web apps.
  • Running business tools like Google Workspace or Microsoft 365.
  • Testing and development environments.

Advantages:

  • Low Cost: No need to buy servers or physical storage.
  • Easy Setup: Get started quickly with minimal technical setup.
  • Scalable: Expand storage and power as needed.

Best For: Startups, small businesses, and companies needing basic services without heavy security demands.

2. Private Cloud Deployment Model

A private cloud deployment model is a dedicated cloud environment used by a single organization. The infrastructure is either hosted on-site or managed by a third party but used exclusively by one business.

Use Cases:

  • Handling sensitive data like patient health records.
  • Financial institutions needing strict data controls.
  • Large enterprises with high security needs.

Advantages:

  • Greater Security: Only your business accesses the cloud resources.
  • Full Control: Customise the setup and security features.
  • Better Performance: Dedicated resources prevent slowdowns.

Best For: Banks, healthcare providers, government agencies, and businesses needing tight security and full control.

3. Hybrid Cloud Deployment Model

A hybrid cloud deployment model combines both public and private clouds. Businesses can store critical data on a private cloud for security while using the public cloud for less sensitive tasks like running apps or managing collaboration tools.

Use Cases:

  • E-commerce platforms: Secure payment data in a private cloud while hosting product pages on a public cloud.
  • Media companies: Store customer data privately while streaming content from public servers.

Advantages:

  • Balance of Security and Flexibility: Keep sensitive data secure while using public resources for scalability.
  • Cost-Effective: Use the public cloud for non-sensitive tasks, saving costs.
  • Disaster Recovery: Backup critical data in the private cloud with public cloud redundancy.

Best For: Large organizations needing both control and flexibility, such as e-commerce, media, and financial services.

4. Community Cloud Deployment Model

A community cloud deployment model is shared by multiple organizations with similar needs, such as security, compliance, or data management requirements. It’s typically used by industries or sectors with common goals.

Use Cases:

  • Healthcare networks sharing secure patient data.
  • Research institutions collaborating on large data sets.
  • Government agencies working on joint projects.

Advantages:

  • Cost Sharing: Shared resources reduce individual costs.
  • Collaboration-Friendly: Built for multiple groups to work together securely.
  • Better Security: Designed for specific industries with shared security needs.

Best For: Industry collaborations, government partnerships, and organizations needing shared but secure data handling.

Comparison of Cloud Deployment Models 

According to a 2024 report, 83% of enterprise workloads are expected to be on the cloud by 2028, with businesses across industries adopting cloud solutions to improve efficiency and reduce costs. 

Here are the differences between the four main types of Cloud Computing to help you decide which is best for your organization.

1. Public Cloud

  • Benefits:
    • Scalability: Instantly scale up or down based on your needs, without the hassle of managing physical servers.
    • Affordability: With a pay-as-you-go model, businesses only pay for what they use, making it affordable for small to medium-sized businesses.
    • No Management Hassle: The provider handles most technical aspects, including security and system maintenance.
  • Challenges:
    • Limited Control: Less flexibility when it comes to customizing the environment.
    • Security Concerns: Although secure, it might not meet the needs of businesses handling sensitive data.

2. Private Cloud

  • Benefits:
    • Full Control: You control the environment, which is ideal for customizations and compliance.
    • Stronger Security: With a private cloud, sensitive data can be kept within the organization’s internal systems.
  • Challenges:
    • Higher Costs: Setting up and managing a private cloud is more expensive, requiring investment in infrastructure and maintenance.
    • Scalability Limits: Scaling up is more complex and less flexible than public cloud options.

3. Hybrid Cloud

  • Benefits:
    • Flexibility: You can choose which workloads are placed in the public cloud and which are kept private.
    • Scalability with Control: Use public cloud resources to scale when needed, but keep sensitive data and critical operations within a private cloud.
  • Challenges:
    • Complex Management: Managing two environments can be more complicated and requires expertise.
    • Higher Costs: In some cases, maintaining both a private and public cloud could lead to increased operational costs.

4. Community Cloud

  • Benefits:
    • Cost Sharing: The infrastructure costs are shared among the community members, making it more affordable.
    • Collaborative: Perfect for joint projects, research initiatives, or organizations that need to share resources.
  • Challenges:
    • Limited Scalability: The resources are shared, and scaling might be constrained.
    • Shared Control: Security, access, and control are shared among the participating entities.

Cloud Deployment Models for Startups vs. Enterprises 

When it comes to cloud deployment models, startups and enterprises have different priorities based on their size, budget, and needs. Here's how each typically approaches cloud computing:

Startups

Startups tend to go for public cloud solutions because they are more affordable and flexible. With limited budgets, startups need cloud platforms that are easy to set up, scale quickly, and don't come with hefty upfront costs.

Common Use Cases for Startups:

  • Web hosting
  • Development environments
  • SaaS products

Why It Works for Startups:

  • Startups need to keep expenses low, and the public cloud is perfect for that.
  • Startups need to quickly grow or shrink their resources. Public clouds make this easy without needing to invest in more hardware.
  • Startups often experiment with new ideas. The public cloud gives them the freedom to do that.

Enterprises

Enterprises, on the other hand, usually lean towards hybrid and private cloud solutions. They focus more on security, data control, and compliance. Since enterprises deal with sensitive data, they need more secure, customized environments.

Common Use Cases for Enterprises:

  • Data management
  • Analytics
  • Enterprise applications

Why It Works for Enterprises:

  • Large companies need to protect sensitive data. Private and hybrid clouds offer better security and control.
  • While enterprises still need to scale, their focus is also on keeping data safe. Hybrid and private clouds give them that balance.
  • Enterprises often need tailored solutions to suit their specific business needs, and private clouds can offer just that.

Key Differences:

Factor

Startups

Enterprises

Budget

Focus on low-cost, flexible solutions.

Bigger budget for robust, secure solutions.

Security

Basic security measures are sufficient.

High-level security and data control are crucial.

Scalability

Need quick scaling options.

Balance between scalability and tight security.

How upGrad Can Help You Learn Cloud Computing

Why Learning Cloud Computing Matters:

Cloud computing is one of the most sought-after skills in the tech world. As businesses increasingly move to the cloud, experts are in high demand. With the rise of remote work and global digital solutions, cloud computing skills help you stay competitive.

Here’s why you should consider learning cloud computing:

  • The demand for cloud professionals is growing rapidly.
  • Cloud certifications can give your resume a strong boost.
  • Cloud skills are useful in many industries, from tech to finance.

Courses Offered by upGrad:

upGrad provides a range of cloud computing courses to help you get hands-on experience with real-world applications. Some of the courses include:

These courses offer flexibility, practical experience, and mentorship from industry experts. You can learn at your own pace, all while gaining valuable skills for the future.

Explore our free courses and start building your cloud computing career today!

Coverage of AWS, Microsoft Azure and GCP services

Certification8 Months
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Job-Linked Program

Bootcamp36 Weeks
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Source:

https://edgedelta.com/company/blog/how-many-companies-use-cloud-computing-in-2024
https://www.cloudzero.com/blog/cloud-computing-statistics/
https://www.statista.com/outlook/tmo/public-cloud/worldwide

Frequently Asked Questions

1. What is the best cloud deployment model for a startup?

2. How do public and private clouds differ in terms of security?

3. What industries benefit most from hybrid cloud models?

4. Can I switch from a public cloud to a private cloud?

5. What factors influence the choice of a cloud deployment model?

6. Are hybrid clouds more expensive than private clouds?

7. What is multi-cloud, and how is it different from hybrid cloud?

8. How does a community cloud benefit collaborative industries?

9. Can small businesses afford private cloud solutions?

10. What certifications help understand cloud deployment better?

11. How do cloud models impact compliance with data regulations?

12. Is it possible to use multiple deployment models together?

13. What role does data migration play in cloud deployment?

14. How does serverless computing relate to deployment models?

15. Which cloud deployment model is ideal for e-commerce platforms?

Rohan Vats

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