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. 

## Finding the value 

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 

