Introduction to Cloud Computing
Cloud computing means renting computers, storage and services over the internet instead of buying and running your own servers.
On this page · 5 min · Beginner
On this page
- Learning objectives
- Explanation
- Code example
- Step by step
- Real-world use
- Common mistakes
- Best practices
- Remember this
- Practice exercise
- Mini quiz
- Related topics
- My notes
- Reading time
- 5 min
- Difficulty
- Beginner
- Updated
- Oct 29, 2026
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Learning objectives#
- Explain what cloud computing is
- Compare IaaS, PaaS and SaaS
- Describe elasticity and pay-as-you-go pricing
- Understand the shared responsibility model
Explanation#
Before the cloud, companies bought servers, waited weeks for delivery and paid for capacity even when it sat idle. In the cloud you create resources in minutes and pay only while you use them.
IaaS (Infrastructure as a Service) gives you virtual machines and networks — you manage the operating system. PaaS (Platform as a Service) runs your code for you — you manage only the app. SaaS (Software as a Service) is a finished product such as Microsoft 365 or Gmail.
Elasticity means scaling up for a festival sale and back down afterwards, automatically. Spending moves from up-front capital expense (CapEx) to monthly operating expense (OpEx).
Security is shared: the provider secures the data centres and physical hardware; you secure your data, identities, configuration and code. The more managed the service, the less you have to look after.
Code example: Who manages what?#
On-premises IaaS (VM) PaaS (App Service) SaaS (Microsoft 365)
Data & access You You You You
Application code You You You Provider
Runtime (.NET/Node) You You Provider Provider
Operating system You You Provider Provider
Servers & network You Provider Provider Provider
Data centre You Provider Provider Provider
Moving right, you manage less and the provider manages more — but you are always responsible for your data and who can access it.
This example is illustrative. Copy or download it and run it in your own environment; the expected output is shown above.
Step-by-step explanation#
- On-premises, you own every layer.
- With IaaS the provider runs the hardware; you still patch the OS.
- With PaaS you just deploy code; the platform handles the OS and runtime.
- With SaaS you only manage users and data.
Real-world use case#
A college portal can run on a PaaS web app: no servers to patch, automatic scaling during admission season, and costs that drop during holidays.
Common mistakes#
Misconfigured storage, weak passwords and leaked keys are the customer’s responsibility and cause most cloud breaches.
Copying idle on-premises servers into always-on VMs often costs more than before. Right-size and use managed services.
Best practices#
- Prefer managed (PaaS/serverless) services when they fit
- Set budgets and alerts from day one
- Automate infrastructure with code
- Learn the shared responsibility model for each service you use
Remember this#
IaaS = rent the computer. PaaS = rent the platform. SaaS = rent the finished app.
Pay for what you use — and switch off what you don’t.
The provider secures the cloud; you secure what you put in it.
Practice exercise#
Your task: Classify each as IaaS, PaaS or SaaS: Azure Virtual Machines, Azure App Service, Outlook.com, Azure SQL Database.
Show solution
Azure Virtual Machines → IaaS
Azure App Service → PaaS
Outlook.com → SaaS
Azure SQL Database → PaaS (a managed database)
Mini quiz#
With PaaS, who patches the operating system?
Want more? Practise all Microsoft Azure MCQs · Microsoft Azure interview questions
My notes#
Saved in this browser.