transaction-intensive and need to confirm and track the movement of financial transactions among customers, suppliers, and partners. Additionally, large, often highly customized systems of record are and will continue to be data center-based. These applications are typically tightly  managed for corporate governance and compliance. The traditional data center is designed to manage applications,  but the cloud is designed to manage homogeneous workload  resources. Managing workloads is foundational for the cloud,  and we discuss workloads more in Chapter 4. IaaS and PaaS models are intended to manage a pool of  resources, which is a set of shared, configured services that  are independent of a physical location. PaaS models can be  optimized to manage a particular process, such as application  management. In many situations, cloud service providers  create a multi-tenant environment to support the deployment  of these resources. Multi-tenancy enables the sharing of a service while keeping the data and configurations of individual  customers separate, meaning that in an IaaS model, for example, you may be sharing server infrastructure with many  other users (either internally in the private cloud or externally  in the public cloud). This factor enables economies of scale  for the cloud provider. Operational performance, security, economics, and flexibility  all have a great impact on an organization’s cloud strategy.  Striking the right balance among public cloud services, private  cloud, and the data center can come down to a mix of these  factors or can be dominated by just one. Finding the right  mixture of environments is critical for your organization to  achieve the best value when creating a cloud strategy and  determining which model may provide economic value. For example, a move to IaaS is likely to deliver an economic  benefit if you have the need for increased capacity. This may  take several forms: ✓ Say your organization is ramping up for a new but short- term initiative and you temporarily need some extra CPU  capacity and storage. This may be a good match for an  These materials are the copyright of John Wiley & Sons, Inc. and any  dissemination, distribution, or unauthorized use is strictly prohibited. Finding the value  Chapter 3: Diving into Cloud Economics 27