Infrastructure-as-a-Service (IaaS)

Cloud computing is possible because of a technology called virtualization. Virtualization allows for the creation of a simulated, digital-only "virtual" computer that behaves as if it were a physical computer with its own hardware. The technical term for such a computer is virtual machine. When properly implemented, virtual machines on the same host machine are sandboxed from one another, so they don't interact with each other at all, and the files and applications from one virtual machine aren't visible to the other virtual machines even though they're on the same physical machine.
Some public cloud examples include those offered by Amazon, Microsoft, or Google. These companies provide both services and infrastructure, which are shared by all customers. Public clouds typically have massive amounts of available space, which translates into easy scalability. A public cloud is often recommended for software development and collaborative projects. Companies can design their applications to be portable, so that a project that’s tested in the public cloud can be moved to the private cloud for production. Most cloud providers package their computing resources as part of a service. Public cloud examples range from access to a completely virtualized infrastructure that provides little more than raw processing power and storage (Infrastructure as a Service, or IaaS) to specialized software programs that are easy to implement and use (Software as a Service, or SaaS).

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Virtual machines also make more efficient use of the hardware hosting them. By running many virtual machines at once, one server becomes many servers, and a data center becomes a whole host of data centers, able to serve many organizations. Thus, cloud providers can offer the use of their servers to far more customers at once than they would be able to otherwise, and they can do so at a low cost.
The great advantage of a public cloud is its versatility and “pay as you go” structure that allows customers to provision more capacity on demand. Not only does this make your system scalable, but it does so in a way that doesn’t require a large capital expenditure. There are significant costs associated with IT growth from the hardware and space required to maintenance and staff resources.

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