Microsoft Azure Fundamentals (AZ-900)Describe cloud conceptsMedium

A financial institution is implementing a new compliance system. Due to strict regulatory requirements, all data processed by this system must reside on hardware that is physically located within the company's own data center, completely isolated from any other customers. However, they want to leverage cloud-like automation and self-service capabilities for their internal development teams. Which cloud model would best satisfy these requirements?

  1. ACommunity Cloud
  2. BPrivate Cloud
  3. CHybrid Cloud
  4. DPublic Cloud
Show answer & explanation

Correct answer: B. Private Cloud

A private cloud is a cloud environment dedicated solely to a single organization, typically hosted on-premises, providing the required isolation and control over data location while offering cloud benefits like self-service.

Why the other options are wrong

  • A. A community cloud is shared by several organizations with common concerns, which does not meet the 'solely within the company's own data center' requirement.
  • C. A hybrid cloud combines public and private, but the strict 'all data processed must reside on hardware within their own data center' points exclusively to a private cloud for this specific system.
  • D. A public cloud shares infrastructure with other customers, which violates the isolation and data residency requirement.

Private Cloud

A cloud computing model where computing resources are exclusively dedicated to a single organization, often hosted on-premises or by a third-party provider.

  • Exclusive use by one organization
  • High control and security
  • Can be on-premises or externally managed

Memory trick: Cloud models are a PUBLIC, PRIVATE, HYBRID COMMUNITY.

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