MS-900 Exam EP 3: Principles of Cloud Computing

Main Ideas and Concepts (Cloud Computing Principles — MS-900)

Cloud computing definition

• Cloud computing is the delivery over the internet of computing services such as servers, storage, databases, networking, software, analytics, and intelligence.
• Instead of owning and managing on-premises hardware (e.g., CPU, RAM, storage), organizations rent cloud-based services from a provider such as Microsoft, Google, or AWS.

Shared responsibility model

• When using cloud services, the customer shifts underlying infrastructure responsibilities to the cloud provider.
• The cloud provider maintains the underlying infrastructure platform/services (for example, how servers/virtualization work).
• The customer focuses more on business and application needs.

Key cloud characteristics

• On-demand self-service: Users provision and access services via a portal.
• Access from anywhere: Cloud services are broadly reachable over the internet.
• Elasticity: Scale up and down as demand changes.
• Measured service: Pay based on consumption/usage.

How cloud changes cost structure

Cloud can shift spending from CapEx to OpEx:

• CapEx (on-premises):

  • Costs to buy and upgrade physical hardware (servers, networking, storage)
  • Often includes facilities (space/buildings)
  • Costs are typically spread over multiple years

• OpEx (cloud):

  • Ongoing operational costs (electricity, staff time, office space, internet connections, etc.)
  • Many hardware-related costs are moved to the provider

On-premises cost categories mentioned:

• Storage, server, networking
• Backup and archival
• Disaster recovery / business continuity
• Redundancy / fault tolerance
• Infrastructure costs (electricity, floor space, cooling, maintenance)
• Technical personnel

Cloud cost model examples:

• Leasing or renting cloud servers
• Pay-as-you-go (usage-based) pricing
• Requires active management to prevent misuse of subscriptions/resources

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Cloud Deployment Models (Where Data and Workloads Run)

Public cloud

• The provider runs everything on their hardware outside the customer data center.
• The customer typically has low/no local hardware management.
• Pros: lower maintenance, cost, scalability, and availability/on-demand resources.
• The customer still manages/purchases the services they use (as framed in the subtitles).

Private cloud

• A dedicated environment used by a single organization.
• Example provided: an organization creates virtual machines using proprietary peripherals.
• Pros: more control, flexibility, improved security, high scalability.
• Cons: the organization must buy/maintain hardware and have IT skills.

Hybrid cloud

• A mix of public and private cloud.
• Example provided: public cloud hosts a website, private cloud hosts a secure database.
• Benefits: control, flexibility, compliance support, cost effectiveness, easier use.
• Concern: can be more expensive than selecting only one model.

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Types of Cloud Services (Service Layers)

The subtitles define three major service categories.

IaaS — Infrastructure as a Service

• The most flexible service category.
• The customer rents core infrastructure (such as virtual machines and supporting infrastructure) rather than buying physical hardware.
• More control over the underlying environment (hardware layer emphasis).

PaaS — Platform as a Service

• Provides an environment for building, testing, deploying, and running applications.
• Not ideal for all workloads (as noted in the subtitles), depending on service needs.
• Example given: a custom web/mobile application that securely connects to an on-premises data center.

SaaS — Software as a Service

• Software is centrally hosted and managed by the provider.
• Examples given:
  • Microsoft 365
  • OneDrive for Business
  • Outlook for web
  • Exchange Online

Guidance on choosing service type

Choose the service type based on what you need to manage:

• Need most control over underlying compute/infrastructure → IaaS
• Need a platform to build/manage applications → PaaS
• Need ready-to-use software → SaaS

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Cloud Computing Considerations: Privacy, Compliance, Data Protection

Privacy

• Ensure the cloud provider safeguards data from loss, theft, or third-party misuse.
• Actions described:
  • Review the provider’s privacy notices
  • Understand how the provider handles disaster recovery and business continuity

Compliance

• Organizations must meet legal/regulatory requirements based on industry/geography/company policies.
• Example cited: HIPAA for healthcare organizations.
• Actions:
  • Perform due diligence before signing contracts
  • After contracting, take steps to maintain compliance to protect the company and customers

Data protection (security best practices)

• Apply standard security best practices similar to on-premises:
  • Use strong passwords
  • Change passwords
  • Perform regular auditing and monitoring

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Top Benefits of Cloud Computing (With Explanations)

• Scalability

  • Vertical scaling (scale-up): add resources to a single server (e.g., faster CPU, more CPU, more memory).
  • Horizontal scaling (scale-out): add more servers that work together.
  • Elastic cloud can automatically add/remove resources during demand spikes/drops to save money.

• Agility

  • Rapidly provision the resources/tools/services the business needs because cloud is always available.

• Disaster recovery

  • Easier to configure; providers have solutions to keep data/services available after disasters.

• Cost effectiveness

  • Pay-as-you-go reduces the need to pay upfront for hardware.

• Always current

  • Providers handle much of the work (patching, software updates, configuration).
  • Customer focuses on running the business.

• Reliability

  • Providers offer backup/disaster recovery/replication services to help keep data safe.

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Workforce Empowerment / Where Microsoft 365 Fits (as Described)

Digital transformation and employee empowerment

• The instructor emphasizes empowering employees during digital transformation.

Employee groups

• Information workers: office roles (business, sales, accounting, engineering, administration, management, design).
• First-line workers: customer service support and repair technicians (first point of contact).

Expected outcome

• Provide the right productivity and collaboration tools.

How Microsoft 365 is positioned

• Improves enterprise collaboration
• Continually updated modern system
• Increases productivity
• Supports employees regardless of location and device type

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Speakers / Sources Featured

• Sue Shawn Sudeesh (named instructor/voice of the lesson)
• Microsoft (referenced as the cloud provider and for examples such as Microsoft 365, Exchange Online, and OneDrive for Business)