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Business needs are constantly changing which means organisations invest lots of time and budget into their IT infrastructure of hardware, software and services, to meet the demands of their business. Cloud coomputing provides these resources over the internet thereby saving time and cost for such organisations. There are three deployment models of cloud computing:

1. Private cloud: This is solely for one organisation and highly secure

2. Public cloud: Service cloud providers offer this service to the public and it provides the highest level of efficiency in shared resources.

3. Hybrid cloud: This is a combination of private and public cloud. Resources solely for an organisation’s use could be used in the private cloud and other resources used in the public cloud.

Microsoft through the Microsoft Windows Azure provides the three service models for cloud computing:

1. Platform as a Service (Paas): Microsoft Windows Azure provides a platform/run-time environment for organisations or developers to create and deploy applications

2. Software as a Service (SaaS): Microsoft Windows Azure provides ready to use cloud based applications such as the Microsoft Business Productivity Online Suite (BPOS) and the Microsoft Dynamic CRM online.

3. Infrastructure as a Service (IaaS): Infrastructure which include processing power and storage are provided by Microsoft using its remote desktop and virtual machines to the Microsoft Windows Azure.

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