Cloud Sourcing Models

Sourcing models (shared or dedicated, and whether internally hosted or externally hosted) are defined by the ownership and control of architectural design and the degree of available customization. The different sourcing models can be evaluated against the three standards - cost, control, and scalability.


Cloud Sourcing Type

Hosting Location

Shared or Dedicated

Architectural Control



Shared Public Cloud



Provider or market

Minimal constraints

Pay as you go

Dedicated Public Cloud


Partially or fully dedicated

Provider or market

Constrained by contract

Pay as you go

Self-Hosted Private Cloud


Fully dedicated


Constrained by capital investment

Build the Cloud, share resources

Partner-hosted Private Cloud


Fully dedicated


Constrained by capital investment or contract

Varies by contract, may or may not have capital impact


Public Cloud

The Public Cloud is a pool of computing services delivered over the Internet. It is offered by a vendor, who typically uses a “pay as you go” model. Public Cloud Computing has the following attractive attributes: you only pay for resources you consume; you gain agility through quick deployment; there is rapid capacity scaling; and all services are delivered with improved and consistent availability, resiliency, security, and manageability. Public Cloud options include:

  • Shared Public Cloud: The Shared Public Cloud provides the benefit of rapid implementation, massive scalability, and low cost of entry. It is delivered in a shared environment where the architecture, customization, and degree of security are designed and managed by the provider according to market-driven specifications.
  • Dedicated Public Cloud: The Dedicated Public Cloud provides functionality similar to a Shared Public Cloud except that it is delivered on a dedicated infrastructure. Security, performance, and sometimes customization are better in the Dedicated Public Cloud than in the Shared Public Cloud. Its architecture and service levels are defined by the provider and the cost may be higher than that of the Shared Public Cloud, depending on the volume.


Private Cloud

The Private Cloud is a pool of computing resources delivered as a standardized set of services that are specified, architected, and controlled by a particular enterprise.

The path to a Private Cloud is often driven by the need to maintain control of the delivery environment because of application maturity, performance requirements, and regulatory or business differentiation reasons. For example, banks and governments have data security issues that may preclude the use of currently available Public Cloud services.

Private Cloud options include:

  • Self-hosted Private Cloud: A Self-hosted Private Cloud provides the benefit of architectural and operational control, utilizes the existing investment in people and equipment, and provides a dedicated on-premise environment that is internally designed, hosted, and managed.
  • Partner-hosted Private Cloud: A Partner-hosted Private Cloud is a dedicated environment that is internally designed, externally hosted, and externally managed. It blends the benefits of controlling the service and architectural design with the benefits of outsourcing.

Comments (2)

  1. thanks i will check !


  2. says:


    I just opened a new blog on, you are more than welcome to check it out. My main purpose is to help ISVs specifically to establish their new offering on the cloud include all the operation perspectives include asking the following questions for example : which cloud vendor will host my applications ?, go with an integrator/in house? , will it work for enterprise applications ?, how can I support 24×7 ? what is the business model ? and more,

    you are welcome to feedback and contact me if you find this interesting,


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